US STOCKS-Nasdaq, S&P 500 edge higher as Fed rate cut bets grow, Boeing advances

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Indexes up: Dow 0.30%, S&P 500 0.13%, Nasdaq 0.35%

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Boeing (BA) rises, expects higher deliveries of jets in 2026

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Bitcoin stabilizes following massive losses

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Warner Bros rises on reports of offer from Netflix

(Updates to mid-session trading)

By Johann M Cherian and Pranav Kashyap

Dec 2 (Reuters) -

Wall Street's main indexes rose in choppy trading on Tuesday, with the Nasdaq nar a three-week high as tech shares climbed on growing bets that the Federal Reserve will soon cut interest rates.

Boeing (BA) led the blue-chip Dow, surging 7.9% after the planemaker forecast higher deliveries for its 737 and 787 jets next year.

The information technology sector led gains on the S&P 500, while most other sectors were in the red. A broader chip index gained 1% and Intel (INTC) rose 6%.

The rebound followed a sour start to December, when all three major indexes snapped a weeklong winning streak on Monday, under pressure from rising Treasury yields and a sharp selloff in crypto-linked shares.

Recent data has pointed to a gradually cooling economy, but most policymakers have urged caution on rate cuts, warning that inflation pressures could resurface.

However, a run of dovish remarks from key voting members in recent weeks has traders now betting on an 87.4% chance of a 25-basis-point cut next week - nearly double the odds seen a month ago, according to the CME Group's FedWatch Tool.

The Fed is really torn between the public pressure to reduce rates versus the actual reality of the economy, said Peter Andersen, founder of Andersen Capital Management.

"Even though there are some pockets of weakness, in general the trend is strong and so I don't think lower rates are warranted at this point."

Friday's release of the Personal Consumption Expenditures (PCE) Index, the Fed's preferred inflation gauge, could sharpen expectations for the central bank's policy call next week.

At 11:22 a.m. ET, the Dow Jones Industrial Average rose 142.87 points, or 0.30%, to 47,432.20, the S&P 500 gained 8.74 points, or 0.13%, to 6,821.37 and the Nasdaq Composite gained 80.49 points, or 0.35%, to 23,356.41.

Markets were also keenly watching who may succeed Fed Chair Jerome Powell when his term ends next year, with reports suggesting White House economic advisor Kevin Hassett is a top contender. The decision is expected before Christmas.

Procter & Gamble (PG) lost 2.5% after the consumer packaged goods giant flagged a hit from the U.S. government shutdown.

Warner Bros Discovery rose about 1% after reports said that it received a second round of bids, including an offer from Netflix.

Crypto stocks including Strategy and Coinbase rose 4% and 2.6%, respectively, as bitcoin prices showed signs of stabilizing after its largest dollar loss since May 2021 in the previous session.

U.S. special envoy Steve Witkoff and U.S. President Donald Trump's son-in-law Jared Kushner are expected to meet Russian President Vladimir Putin for talks on a possible way to end the war in Ukraine.

Declining issues outnumbered advancers by a 1.08-to-1 ratio on the NYSE. Advancing issues outnumbered decliners by a 1.12-to-1 ratio on the Nasdaq.

The S&P 500 posted nine new 52-week highs and two new lows while the Nasdaq Composite recorded 54 new highs and 64 new lows on Tuesday. (Reporting by Johann M Cherian and Pranav Kashyap in Bengaluru; Editing by Tasim Zahid and Shinjini Ganguli)