US STOCKS-Wall Street indexes climb after inflation data offers rate-cut relief

By Niket Nishant and Sukriti Gupta

Sept 26 (Reuters) - Wall Street's main indexes gained on Friday, after the latest inflation data met expectations, easing concerns that persistent price pressures could delay interest rate cuts by the Federal Reserve.

U.S. consumer spending increased slightly more than expected in August, data showed, keeping the economy on solid ground as the third quarter progressed, while inflation continued to rise at a measured pace.

The data offers clarity after a tense week during which investors weighed mixed signals from the Fed's policymakers. The S&P 500 and the Nasdaq are set for their worst week since late July, snapping a three-week winning streak.

Some analysts, however, cautioned that inflation figures do not capture the full picture and the impact of new tariffs has yet to filter through.

"Significantly more inflation pass-through is still to come. Firms aggressively accumulated inventories during the first half of the year, and this has given them scope to delay price increases. But that process is now playing through," Citigroup's global chief economist Nathan Sheets said.

Richmond Fed Bank President Thomas Barkin, in an interview with Bloomberg Television, said he had very low confidence in inflation forecasts right now as tariffs continue to impact the economy.

Investors will also monitor remarks from Fed Vice Chair for Supervision Michelle Bowman later in the day.

At 09:56 a.m. ET, the Dow Jones Industrial Average .DJI rose 356.29 points, or 0.78%, to 46,305.74. The S&P 500 .SPX gained 36.32 points, or 0.55%, to 6,641.04, while the Nasdaq Composite .IXIC gained 71.14 points, or 0.32%, to 22,455.84.

Financials .SPSY, up about 1%, were among the biggest boosts to the S&P 500. Tech .SPLRCT stocks were up 0.1%, while energy .SPNY stocks added 1.2%.

Gains in Boeing BA.N and banks such as Goldman Sachs GS.N and JPMorgan JPM.N supported the Dow.

U.S. President Donald Trump on Thursday unveiled fresh import tariffs, including 100% duties on branded pharmaceutical products, 25% levies on heavy-duty trucks, 50% on imported kitchen cabinets and bathroom vanities and 30% on upholstered furniture.

The move could reignite fears of a renewed trade war and complicate the inflation outlook.

Eli Lilly LLY.N shares rose 1.7%. Truck maker Paccar PCAR.O, which manufactures most of its trucks for the U.S. market domestically, gained 4.4% to top the S&P 500.

In corporate news, Intel INTC.O jumped 3.9% after a Wall Street Journal report said the chipmaker had approached Taiwan Semiconductor Manufacturing Co 2330.TW about investments in manufacturing or partnerships.

Boeing rose 4.1% after Reuters reported that the Federal Aviation Administration will allow the planemaker to issue airworthiness certificates for some 737 MAX and 787 airplanes starting next week.

GlobalFoundries GFS.O jumped 8.7% after a report the U.S. was planning a chip production rule to curb reliance on overseas supply.

Costco Wholesale COST.O fell 2.6% to the bottom of the S&P 500, after the company reported quarterly results.

Equities remain richly valued by historical standards, leaving little room for disappointment on macro data. It makes the U.S. corporate results, set to kick off in a few weeks, a key test for the rally's durability.

Advancing issues outnumbered decliners by a 3.34-to-1 ratio on the NYSE and by a 1.86-to-1 ratio on the Nasdaq.

The S&P 500 posted 18 new 52-week highs and one new low, while the Nasdaq Composite recorded 37 new highs and 22 new lows.