US STOCKS-S&P 500 inches up after upbeat economic data

Updated at 1:55 p.m. ET/ 1755 GMT

By Noel Randewich and Johann M Cherian

Aug 30 (Reuters) - The Nasdaq and S&P 500 rose on Friday, with Tesla and Amazon climbing after fresh U.S. economic data raised expectations that the Federal Reserve will cut interest rates modestly in September.

U.S. consumer spending increased solidly in July, suggesting the economy remained strong while prices rose moderately.

"Investors are seeing another sign of being in a soft landing," said Cameron Dawson, chief investment officer at Newedge Wealth. "It's another one of those Goldilocks kind of reports really threading a right down the center. The market is really getting exactly what it wanted."

Amazon.com AMZN.O and Tesla TSLA.O each added about 2%.

Broadcom AVGO.O climbed 2%, while Marvell Technology MRVL.O jumped 9% after the chipmaker forecast quarterly results above estimates.

Friday's personal consumption expenditures report was the last major economic data release before the Fed's September meeting. Chair Jerome Powell last week expressed support for an imminent policy adjustment.

Money markets suggest traders mostly expect the Fed to cut rates by 25 basis points in September, with odds of a 50 basis point cut dimming further after Friday's data, according to CME Group's FedWatch Tool.

Friday ends a tumultuous month on Wall Street after signs of a sudden moderation in the labor market in early August sparked fears of a U.S. recession. The influence of the Japanese yen JPY= carry trade worsened the rout.

Shares have rebounded since then, with the Dow .DJI closing on Thursday at its highest ever.

Trading volume has been thin this week ahead of the U.S. stock market holiday on Monday for Labor Day.

The S&P 500 index was up 0.18% at 5,601.77 points.

The Nasdaq Composite Index rose 0.31% to 17,571.40 points, while the Dow Jones Industrial Average was down 0.17% at 41,263.32 points.

Of the 11 S&P 500 sector indexes, eight rose, led by consumer discretionary .SPLRCD, up 0.83%, followed by a 0.24% gain in consumer staples .SPLRCS.

Nvidia NVDA.O rose 0.5%, rebounding from a 6.4% drop in the previous session after the artificial intelligence-chip bellwether failed to match sky-high investor expectations, despite upbeat results and a broadly in-line forecast.

Ulta Beauty ULTA.O slid 4.5% after it trimmed its annual results forecasts, citing slowing demand for higher-priced cosmetics and fragrances at its stores.

Intel INTC.O jumped almost 8% following a report it was exploring options that could include a merger.

Dell Technologies DELL.N, another AI-related stock, advanced 3.3% after lifting its annual revenue and profit forecasts.

Shares of Trump Media & Technology Group DJT.O, majority owned by former U.S. President Donald Trump, dipped 0.7% to a record low, leaving its stock market value at $3.9 billion.

Advancing issues outnumbered falling ones within the S&P 500 .AD.SPX by a 1.0-to-one ratio.

The S&P 500 posted 59 highs and one low; the Nasdaq recorded 65 highs and 68 lows.

(Reporting by Noel Randewich in Oakland, California; Additional reporting by Johann M Cherian and Purvi Agarwal in Bengaluru; Editing by Pooja Desai and Richard Chang)

((.randewich@tr.com))