US STOCKS-Wall St rises as chipmakers, megacap growth stocks recover

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McCormick jumps after Q1 profit, sales beat

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Trump Media & Technology surges on debut after SPAC merger

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Indexes up: Dow 0.18%, S&P 0.29%, Nasdaq 0.45%

(Updated at 09:33 a.m. ET/ 1333 GMT)

By Shashwat Chauhan and Bansari Mayur Kamdar

March 26 (Reuters) - Wall Street's main stock indexes climbed on Tuesday as most megacap growth stocks and chipmakers advanced, while investors awaited economic data in a holiday-shortened week to assess the Federal Reserve's easing path.

The three main U.S. stock indexes ended the previous session slightly lower, with the S&P 500 and the blue-chip Dow slipping from their best weekly performances so far this year.

The spotlight remains on a crucial February reading of the Personal Consumption Expenditures (PCE) price index, the Fed's preferred inflation gauge. The data is due on Friday, when U.S. markets will be shut for the Good Friday holiday.

The index is expected to have risen 0.4% in February and 2.5% on an annual basis. Core inflation, which excludes volatile food and energy components, is estimated to have been up 0.3% last month, which would keep the annual pace at 2.8%, according to economists polled by Reuters.

Wall Street hit fresh record highs last week after the central bank stuck to its projection of three interest-rate cuts this year.

Traders see an at least 70% chance the Fed will begin its easing cycle in June, according to the CME FedWatch tool, up from a nearly 59% chance seen early last week.

Fed officials said on Monday they still believed U.S. inflation would ease, but acknowledged an increased sense of caution around the debate.

"We're avoiding a recession, likely to get lower interest rates, earnings have been improving and we have not seen the widening of the Middle East tension. It seems like everything is going our way," said Sam Stovall, chief investment strategist at CFRA Research.

At 09:33 a.m. ET, the Dow Jones Industrial Average was up 70.78 points, or 0.18%, at 39,384.42, the S&P 500 was up 15.22 points, or 0.29%, at 5,233.41, and the Nasdaq Composite was up 73.22 points, or 0.45%, at 16,457.68.

All 11 major S&P 500 sectors advanced in early trading.

Most megacap growth stocks also rose, with Tesla , up 3.7%, leading the charge.

Micron Technology climbed 2.5% after a record high in the last session, while industry giant Nvidia gained 0.9%.

The Philadelphia Semiconductor Index rose 0.9%, and was on track to ending the quarter with double-digit gains, as an artificial intelligence-led rally lifted chipmakers.

Trump Media & Technology group surged 32.1% as it kicked off its first day of trading after completing a reverse merger with a blank check firm.

McCormick added 7.2% after the spice maker beat market expectations for first-quarter sales and profit.

Krispy Kreme jumped 22.3% after the company and McDonald's said they plan to provide Krispy Kreme's doughnuts across the fast-food giant's U.S. restaurants by the end of 2026.

Trading activity is expected to be thin owing to the upcoming long weekend break.

Advancing issues outnumbered decliners by a 3.72-to-1 ratio on the NYSE and by a 2.37-to-1 ratio on the Nasdaq.

The S&P index recorded 10 new 52-week highs and no new lows, while the Nasdaq recorded 26 new highs and 19 new lows.

(Reporting by Shashwat Chauhan and Bansari Mayur Kamdar in Bengaluru; Editing by Saumyadeb Chakrabarty and Pooja Desai)