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Dell falls after forecasting drop in FY26 gross margin

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HP falls on downbeat quarterly profit forecast

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January PCE price index rises 2.5% YoY

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Indexes up: Dow 0.46%, S&P 500 0.40%, Nasdaq 0.39%

(Updates to mid-session trading)

By Johann M Cherian and Sukriti Gupta

Feb 28 (Reuters) -

Wall Street's main indexes rose in choppy trading on Friday,

rebounding from several sessions of declines, while a drop in

Treasury yields further aided risk-taking after data showed

inflation rose as expected last month.

A

Commerce Department report

showed that inflation rose in line with expectations in the

previous month. However, consumer spending dropped as households

stocked up on goods ahead of the Donald Trump administration's

telegraphed tariff.

At 11:34 a.m. ET, the Dow Jones Industrial Average

rose 198.90 points, or 0.46%, to 43,438.40, the S&P 500

gained 23.69 points, or 0.40%, to 5,885.26 and the Nasdaq

Composite gained 72.89 points, or 0.39%, to 18,615.92.

Ten of the 11 S&P 500 sectors rose, led by consumer

discretionary stocks' 0.8% rise as yield on near-term

bonds dropped to levels not seen since October.

The CBOE Volatility Index dropped to 20.96 points

after touching a one-month high earlier in the session.

Traders broadly expect the Fed to lower interest rates

twice by December, according to data compiled by LSEG, and

comments from Chicago Fed President Austan Goolsbee due later in

the day will be parsed for his insights on the central bank's

stance.

"Some consumers nixed spending in January due to fears

of job losses, tariffs raising the cost of living, and the

immigration crackdown," said Bill Adams, chief economist for

Comerica Bank.

"But many more probably only delayed spending, since

winter weather swept much of the Sunbelt and discouraged

nonessential trips to car dealerships and open houses."

Friday's report is important for investors trying to

gauge the central bank's next policy move, after policymakers

reiterated a hawkish stance on interest rates. The fear has been

that the new Trump administration's policies, especially trade

restrictions, could lead to a rise in domestic inflation and

hamper economic growth.

The following week will be crucial for markets as

Trump's deadline to the one-month pause to Canadian and Mexican

tariffs will end, while a batch of pivotal jobs reports are also

on tap.

Concerns that tech companies such as Nvidia ( NVDA ) and

Microsoft ( MSFT ) might be overspending on

artificial-intelligence infrastructure have also put Wall Street

indexes on track for monthly declines.

The benchmark S&P 500 logged declines in five of the past

six sessions and is set for its biggest one-month drop since

April 2024. The tech-heavy Nasdaq is down about 9% from its

all-time high and is headed for its steepest one-month fall

since September 2023.

Nvidia ( NVDA ) rose 1.1% after an 8.5% slide in the previous

session, after the chip giant issued a weaker-than-expected

quarterly gross margin forecast.

Dell lost 5.8% as the PC maker forecast a decline

in its adjusted gross margin rate for fiscal 2026.

Peer HP Inc ( HPQ ) fell 6.8% after its quarterly profit

forecasts missed expectations.

Trump's latest threat to slap an extra 10% duty on imports

from China hit U.S.-listed China stocks such as Alibaba

and Xpeng, which fell 2.7% and 3.9%, respectively.

NetApp ( NTAP ) plunged 16% after the data storage firm

lowered its forecast for annual results.

Advancing issues outnumbered decliners by a 1.84-to-1

ratio on the NYSE and by a 1.27-to-1 ratio on the Nasdaq.

The S&P 500 posted 27 new 52-week highs and 11 new lows,

while the Nasdaq Composite recorded 25 new highs and 266 new

lows.