*

Indexes up: Dow 0.54%, S&P 500 1.33%, Nasdaq up 2.36%

*

Deutsche Bank sees S&P 500 rising to 8,000 by 2026 end

*

Bristol Myers gains after rivals positive late-stage data

(Updates to mid-session trading)

By Johann M Cherian and Pranav Kashyap

Nov 24 (Reuters) - Wall Street's main indexes rose on

Monday, on the back of gains from tech stocks and mega-caps such

as Alphabet, as growing bets on a Federal Reserve rate cut in

December fueled risk-taking.

Dovish remarks from influential Fed Governor Christopher

Waller and New York Fed President John Williams offered some

respite on the policy front and stalled a month-long recent

selloff in U.S. stocks.

But other policymakers have voiced caution, reflecting

division within the central bank ahead of December's FOMC

meeting.

Still, investors are pricing in a 76.9% chance the Fed will

deliver a 25-basis-point interest rate cut next month, compared

with 42% a week earlier, according to CME Group's FedWatch Tool.

Mega-cap stocks were in the lead, with Alphabet up

4.6% and Tesla gaining 6.7%, while Broadcom ( AVGO )

jumped 10%.

Communication Services led gains among the 11 S&P

500 sectors with a 3% rise, while an index tracking chip

companies advanced 4.3%.

"It's a combination of rate-cut enthusiasm, which has

completely turned around since Williams made his comments on

Friday morning, and the usual fear of missing out," said Steve

Sosnick, chief market analyst at Interactive Brokers.

At 11:40 a.m. ET, the Dow Jones Industrial Average

rose 249.13 points, or 0.54%, to 46,494.54, the S&P 500

gained 87.81 points, or 1.33%, to 6,690.80 and the Nasdaq

Composite gained 503.65 points, or 2.26%, to 22,776.74.

TECH VALUATION WORRIES TEMPORARILY ON HOLD

Monday's gains were a relief for Wall Street, having hit a

volatile patch in November as investors worried the AI boom may

be morphing into a bubble, while a prolonged U.S. government

shutdown starved them of data to help gauge the health of the

world's largest economy.

The S&P 500 and Nasdaq are headed for monthly losses in

November, and are on track for their steepest declines since

fears of a tariff hike sparked a selloff in March. Analysts

broadly flagged periods of volatility could still flare up.

Deutsche Bank expects the S&P 500 to hit 8,000 by the

end of 2026, citing resilient corporate earnings and AI-driven

gains.

CONSUMER RESILIENCE IN SPOTLIGHT AS HOLIDAY SEASON KICKS OFF

September retail sales and producer prices data are expected

this week, ahead of the holiday shopping season that starts with

the Thanksgiving holiday on Thursday, extending into Black

Friday and Cyber Monday.

Spending trends are coming under sharper scrutiny as a

flurry of layoff announcements, rising unemployment data and

U.S. tariffs cloud consumer sentiment. Even so, the National

Retail Federation expects holiday sales to top $1 trillion for

the first time.

"The consumer sentiment numbers are still lousy. But it's

telling us the consumer is nervous but still somewhat

resilient," Sosnick said.

Meanwhile, Bristol-Myers gained 4.9% after European

rival Bayer unveiled positive late-stage data for its

cardiovascular drug.

Some U.S. health insurers and hospital operators gained

after a report said Trump's health plan could see subsidy

extensions for two years.

Centene ( CNC ) rose 7.5%, while Oscar health

surged 20%.

Advancing issues outnumbered decliners by a 1.96-to-1 ratio

on the NYSE and by a 2.18-to-1 ratio on the Nasdaq.

The S&P 500 posted 17 new 52-week highs and two new lows

while the Nasdaq Composite recorded 87 new highs and 88 new

lows.