(Recasts with preliminary close of trading)

*

Alphabet jumps

*

Lilly becomes first drugmaker to join trillion-dollar club

*

Report: US considering letting Nvidia ( NVDA ) sell H200 chips to

China

By Caroline Valetkevitch

NEW YORK, Nov 21 (Reuters) - U.S. stocks ended sharply

higher on Friday as traders boosted bets on an interest rate cut

by the Federal Reserve next month, while all three of the major

indexes posted losses for the week amid concerns over lofty

technology valuations.

Shares of Nvidia ( NVDA ) briefly jumped in afternoon trading

after sources familiar with the matter said the Trump

administration is considering green-lighting sales of the

company's H200 artificial intelligence chips to China.

New York Fed President John Williams, a voting member of the

Federal Open Market Committee, said the central bank can still

cut rates "in the near term" without putting its inflation goal

at risk.

Traders now see a roughly 70% chance that the Fed will cut

its main lending rate by 25 basis points in December, up from a

near 37% chance seen earlier in the day, according to the CME

FedWatch Tool.

"The big tailwind today is that shift in rate cut odds for

the December Fed meeting," said Ross Mayfield, investment

strategist at Baird in Louisville, Kentucky.

According to preliminary data, the S&P 500 gained

64.89 points, or 0.99%, to end at 6,603.65 points, while the

Nasdaq Composite gained 192.83 points, or 0.87%, to

22,273.08. The Dow Jones Industrial Average rose 505.03

points, or 1.08%, to 46,257.29.

Stocks have been volatile in the past two sessions,

reflecting heightened investor anxiety over sky-high valuations

in the technology sector and over what may happen at the

December Fed meeting.

Boston Fed President Susan Collins said on CNBC that policy

was "in the right place," indicating skepticism about the need

for another rate cut. Her stance contrasts with dovish signals

from some peers, a divergence that could stoke market volatility

ahead of the December meeting.

Global brokerages remained divided over the likelihood of a

December rate cut after Thursday's release of the long-delayed

September jobs report, which marks the last employment reading

before the Fed's verdict next month.

Eli Lilly ( LLY ) shares ended higher after the company

became the first drugmaker to touch a $1 trillion market

capitalization.

Alphabet shares closed sharply higher as well on

Friday.