US STOCKS-Wall Street advances as investors assess sentiment data

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Indexes up: Dow 0.34%, S&P 500 0.23%, Nasdaq 0.24%

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Applied Digital (APLD) rises on quarterly revenue beat

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Levi Strauss slips after downbeat FY profit forecast

(Updates after markets open)

By Niket Nishant and Sukriti Gupta

Oct 10 (Reuters) - Wall Street's main indexes gained on Friday, with the tech-heavy Nasdaq hitting an intraday record high, while investors analyzed the consumer sentiment data for fresh insights into the economy.

Traders remain bullish on equities despite Thursday's declines, betting that the AI-driven momentum remains intact. Some analysts expect the AI trade, mostly concentrated in tech so far, to spill over into energy and construction firms as demand for data center buildout accelerates.

"Investors see little pullbacks as opportunities to nibble in and add more capital. There's just a lot of money sloshing around in the system," said Aleksandr Spencer, chief investment officer at Bogart Wealth.

Others add that the nearly three-year-old bull market still has room to run, especially if the Federal Reserve continues to lower interest rates.

Recent data has reinforced expectations for easing. While the government shutdown has delayed official releases, proxies point to a weakening labor market, with layoffs tied to the impasse likely to deepen the strain.

At 10:07 a.m. ET, the Dow Jones Industrial Average rose 159.54 points, or 0.34%, to 46,517.96. The S&P 500 gained 15.69 points, or 0.23%, to 6,750.80, while the Nasdaq Composite advanced 55.46 points, or 0.24%, to 23,079.81.

The S&P 500 and the Nasdaq were on track to log weekly gains, if current levels hold.

The S&P 500 tech sector gained 0.3%. Intel (INTC) gained 2.6% after brokerage TD Cowen raised its price target on the stock.

The gains in tech stocks also boosted the Nasdaq.

Financials rose 0.2% on the S&P 500, while energy stocks declined 1%.

A preliminary reading of the University of Michigan's consumer sentiment index for October came in at 55, compared with the estimate of 54.2, according to economists polled by Reuters.

Investors are likely to closely assess the print given the added significance it carries because of the official data blackout.

They are also weighing developments in the Middle East, where Israeli troops began pulling back from some parts of Gaza under a ceasefire deal with Hamas. Signs of easing tensions could boost sentiment by removing a long-standing overhang on equities.

The earnings season, which kicks off next week, is expected to be the next litmus test for the rally.

Marvell Technology (MRVL) rose 3% after Oppenheimer raised its price target on the stock. Data center operator Applied Digital (APLD) surged 31.7%, a day after posting better-than-expected revenue for the first quarter.

Oracle jumped 2% after Citigroup raised its price target on the stock.

PepsiCo (PEP) rose 2.7% after at least four brokerages raised their price targets on the stock.

Levi Strauss shares slipped 10.2% after it forecast annual profit below analysts' expectations.

Mosaic Co's (MOS) shares lost 7.2% after the fertilizer producer said its third-quarter phosphate production was below its forecast.

Qualcomm (QCOM) fell 1.3% after China's market regulator said the country has launched an antitrust investigation into the semiconductor manufacturer over its acquisition of Israel's Autotalks.

Advancing issues outnumbered decliners by a 1.48-to-1 ratio on the NYSE and by a 1.04-to-1 ratio on the Nasdaq.

The S&P 500 posted 13 new 52-week highs and four new lows, while the Nasdaq Composite recorded 79 new highs and 31 new lows. (Reporting by Niket Nishant and Sukriti Gupta in Bengaluru; Editing by Anil D'Silva and Shilpi Majumdar)