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Indexes: Dow up 0.74%, S&P 500 up 0.19%, Nasdaq down 0.25%

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Alphabet up after report on talks with Meta to supply AI

chips

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Nvidia ( NVDA ), AMD lead declines after Alphabet report

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Retail sales, producer inflation data in focus

(Updates to mid-session trading)

By Johann M Cherian and Sruthi Shankar

Nov 25 (Reuters) - Wall Street's main indexes were mixed

on Thursday as investors took stock of economic data that had

been delayed by the U.S. government shutdown, while Nvidia's ( NVDA )

shares tumbled on concerns over intensifying competition in the

AI chip space.

Alphabet's shares rose about 1% after the

Information reported Facebook-parent Meta Platforms was

in discussions to use Google's AI chips in its data centers from

2027 and rent chips from Google Cloud by next year.

Nvidia ( NVDA ), which currently dominates the AI chips

sector, dropped 4.5% to a two-month low, while Advanced Micro

Devices ( AMD ) fell 7.2%.

The Philadelphia SE Semiconductor index dropped 1.6%,

having bounced 4.6% on Monday.

"There's a false expectation that there's only one chip

company out there and no one else is working in terms of

competition and we've got a headline to remind us that that's

just not the case," said Phil Blancato, CEO of Ladenburg

Thalmann Asset Management in New York.

The Nasdaq logged its biggest one-day gain in six months on

Monday, as investors scooped up tech stocks following several

bouts of selling in recent weeks driven by worries of stretched

valuations in the sector and high AI spending by large

companies.

The S&P 500 and Nasdaq are on course to record their worst

monthly performances since March.

At 11:24 a.m. ET, the Dow Jones Industrial Average

rose 337.58 points, or 0.74%, to 46,785.85, the S&P 500

gained 12.98 points, or 0.19%, to 6,718.10 and the Nasdaq

Composite lost 59.47 points, or 0.25%, to 22,815.15.

DELAYED DATA TRICKLES IN

Commerce Department data showed retail sales fell short of

expectations in September, while a separate report showed

producer prices rebounded in September due to higher costs of

energy goods and tariffs.

Trader bets for an interest rate cut of 25 basis points next

month were little changed following the data and were last at an

82.7% chance, doubling from around 40% last week, according to

the CME Group's FedWatch Tool.

Market sentiment has recently been supported by growing bets

the Federal Reserve will lower borrowing costs in December

following dovish remarks by voting members on the Federal Open

Market Committee such as John Williams and Christopher Waller.

"Some of the data is suggesting the economy is slowing. It

does give the Fed the first piece of data to think about cutting

at least," said Blancato.

Meanwhile, the hunt for the next Fed Chair was on, with

Treasury Secretary Scott Bessent saying the announcement could

come as soon as pre-Christmas.

Eight of the 11 major S&P 500 sectors were higher, with

healthcare leading with a 1.7% rise, while the Russell

2000 index tracking small-caps rose 1.5% to a near

two-week high.

Retailers got a lift too after department store operator

Kohl's jumped 34% and clothing retailer Abercrombie &

Fitch ( ANF ) surged 30%, with both companies raising their

annual earnings forecasts.

Apparel retailer Burlington Stores ( BURL ) tumbled 9.2%

after its third-quarter revenue missed estimates.

U.S.-listed shares of Alibaba slipped 1.9%,

reversing early gains after the Chinese e-commerce giant beat

analysts' estimates for quarterly revenue.

Advancing issues outnumbered decliners by a 2.83-to-1 ratio

on the NYSE and by a 1.74-to-1 ratio on the Nasdaq.

The S&P 500 posted 32 new 52-week highs and one new low

while the Nasdaq Composite recorded 104 new highs and 62 new

lows.