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Indexes up: Dow 0.8%, S&P 500 0.99%, Nasdaq 1.37%

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Philadelphia Semiconductor Index hits all-time high

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Apple ( AAPL ) shares hit record high

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Boeing ( BA ) rises after FAA approves 737 MAX production raise

(Updates with analyst comments, early afternoon levels)

By Pranav Kashyap and Twesha Dikshit

Oct 20 (Reuters) - Wall Street indexes kicked off the

week on a solid ground, powered by gains in mega-cap stocks,

while investors braced for a wave of corporate earnings and a

crucial inflation report that could steer the market's next

move.

Markets shook off last week's turbulence, sparked by renewed

concerns over systemic credit stress in the banking sector, as

investors piled into tech heavyweights in a classic "buy the

dip" move.

Apple ( AAPL ) shares rose 4.3% to a record high, while Meta

and Netflix ( NFLX ) gained more than 2% each. Alphabet

added more than 1%.

The CBOE Volatility Index, Wall Street's fear gauge,

slipped to its lowest in over a week, signaling a return of

investor confidence.

"AI is the story and investors are excited about the

tremendous productivity gains that will come from AI. You have

massive spending that will be further validated by many of the

'magnificent seven'," said Eric Schiffer, CEO private equity

firm, Patriarch Organization.

Investor attention this week will also be on earnings from

Wall Street heavyweights, including Tesla, Ford,

GM and Netflix ( NFLX ), as they are expected to offer a

fresh stress test for equities trading near lofty valuations.

Some U.S. regional bank results, too, will be monitored for

a pulse-check on the sector's health.

S&P 500 companies are expected to post a 9.3% year-on-year

jump in third-quarter profit, according to LSEG IBES data.

At 11:18 a.m., the Dow Jones Industrial Average rose

369.91 points, or 0.80%, to 46,560.52. The S&P 500 gained

66.01 points, or 0.99%, to 6,730.02, while the Nasdaq Composite

advanced 310.03 points, or 1.37%, to 22,990.00.

The Philadelphia Semiconductor Index hit an all-time

high, and was last up 2.2%.

Micron shares rose 3.6% and hit a record high after

Barclays raised its price target on the stock. ON Semiconductor

and KLA added 5.6% and 4.8%, respectively.

S&P Energy index gained 0.3%, while industrials

added almost 1%.

On the trade front, U.S. President Donald Trump suggested

easing tariffs on China if Beijing resumes key agricultural

purchases such as soybeans. He, however, blamed the latest

breakdown in talks on China's tightening control over rare earth

exports.

DELAYED CPI

A U.S. government shutdown, which began on October 1, has

halted key economic data releases, leaving investors without

crucial indicators. That places Friday's consumer price report,

a pivotal inflation gauge, firmly in the spotlight ahead of the

Federal Reserve's policy meeting on October 28-29.

While September's core inflation is expected to hold steady

at 3.1%, markets widely expect a quarter-point rate cut this

month, with another reduction likely in December.

Among other stocks, Applovin ( APP ) dropped 3.8% after

Fuzzy Panda disclosed a short position in the company.

Boeing ( BA ) gained about 1% after the planemaker won

approval from the U.S. Federal Aviation Administration to raise

737 MAX production to 42 planes per month.

WeightWatchers climbed 9.4% after the company

partnered with Amazon for weight-loss drug delivery.

Advancing issues outnumbered decliners by a 4.14-to-1 ratio

on the NYSE and by a 3.17-to-1 ratio on the Nasdaq.

The S&P 500 posted 14 new 52-week highs and four new lows,

while the Nasdaq Composite recorded 60 new highs and 47 new

lows.