By Noel Randewich
July 28 (Reuters) - The S&P 500 ended higher on Tuesday as gains in Boeing and Coca-Cola helped offset tumbling chip stocks ahead of quarterly reports from Apple and other tech companies this week.
Global markets have been volatile this month as investors worry that Alphabet, Microsoft, Amazon and other technology heavyweights may be overspending on AI data centers as they race to dominate the emerging technology.
Microsoft rose ahead of its report on Wednesday, while Amazon was near
flat ahead of its results on Thursday.
Apple climbed and lifted its stock market value to $5 trillion for the first time. The iPhone maker reports its results on Thursday.
The S&P 500 healthcare and consumer staples indexes each rallied, while declining chipmakers kept the tech index in negative territory.
"What has been behind the move into these non-tech names? Part of it is value," said Ross Mayfield, investment strategy analyst at Baird in Louisville, Kentucky. "GDP is solid, the labor market continues to churn along and, in a lot of places, there's evidence that consumer spending is reaccelerating."
Coca-Cola rallied after the beverage company raised its annual revenue and profit forecasts.
Boeing jumped after the airplane maker generated positive free cash flow as its turnaround plans gained momentum.
According to preliminary data, the S&P 500 gained 17.07 points, or 0.23%, to end at 7,430.25 points, while the Nasdaq Composite lost 58.88 points, or 0.24%, to 24,873.20. The Dow Jones Industrial Average rose 546.61 points, or 1.05%, to 52,756.69.
FED DECISION IN FOCUS
The Federal Reserve is due to announce its interest-rate decision on Wednesday. Traders see a 71% probability that the central bank will leave rates unchanged and a 29% chance of a 25-basis-point rate hike, according to CME's FedWatch tool.
Higher rates could further pressure AI companies that are becoming more dependent on debt financing.
Corning tumbled after third-quarter sales forecasts missed estimates, while contract research firm IQVIA Holdings jumped 12% after lifting its annual profit forecast.
Oil prices offered some broader relief, with Brent falling 4.8% to settle at $84.09 a barrel on expectations that tensions in the Middle East and in Ukraine would ease as the White House hosted Israel's Benjamin Netanyahu and Ukraine's Volodymyr Zelenskiy.
(Reporting by Johann M Cherian, Ragini Mathur and Utkarsh Tushar Hathi in Bengaluru, and by Noel Randewich in San Francisco; Editing by Shinjini Ganguli, Maju Samuel, Rod Nickel)
