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Indexes up: Dow 0.1%, S&P 500 0.03%, Nasdaq 0.09%

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AT&T ( T ) gains after annual profit forecast above estimates

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GE Vernova raises 2026 revenue forecast, shares rise

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Meta, Microsoft ( MSFT ) and Tesla report earnings after market

close

(Updates with analyst comments, early afternoon prices)

By Pranav Kashyap and Twesha Dikshit

Jan 28 (Reuters) - The S&P 500 briefly topped 7,000

points for the first time on Wednesday only to pull back, with

volatility picking up as traders awaited the ‌Federal Reserve's

rate decision and a wave of Big Tech earnings.

The benchmark slipped back to little changed, while the

Nasdaq held on to a mild advance after trimming ​earlier gains.

"These big round numbers can be difficult psychological

tests for the market, but we think it's a very ‍positive sign,"

said Jeff Buchbinder, chief equity strategist for LPL

Financial.

The Fed convenes later in the ⁠day for its rate decision,

with ⁠policymakers widely expected to keep it unchanged at

3.5%-3.75%. Traders will be alert for the Fed's statement and

Chair Jerome Powell's remarks, for clues on the ‌future rate

trajectory.

The U.S. central bank, which recently started receiving

real-time data on ​the economy's health after a partial

government shutdown last year, is navigating policy while

peering through an increasingly politicized fog.

This meeting arrives in the backdrop of a Justice Department

inquiry launched earlier this month ⁠involving Powell as well as

Trump's hints that a successor ‍will be named "soon".

The ​markets currently expect the first rate cut to come in

June, according to CME's FedWatch tool.

At 11:31 a.m. ET, the Dow Jones Industrial Average

rose 49.62 points, or 0.10%, to 49,053.03, the S&P 500

gained 1.23 points, ‍or 0.03%, to 6,980.50 and the Nasdaq

Composite gained 20.74 points, or 0.09%, to 23,839.44.

Nvidia ( NVDA ) climbed 1.5%, Intel ( INTC ) jumped 11.3%,

and Micron and Microchip Technology ( MCHP ) each gained

over 5%. SK Hynix, a key Nvidia ( NVDA ) supplier, reported a record

quarterly profit and ASML booked its highest ever fourth-quarter

orders, igniting a tech rally from Europe to Asia.

The Philadelphia SE Semiconductor index rose 1.8%.

"MAG 7" KICKS OFF EARNINGS

Meta, Microsoft ( MSFT ) and Tesla report

after market close, kicking off the so-called "Magnificent

Seven" earnings that have driven the AI ​trade, powering ‍markets

to record levels.

Apple ( AAPL ), whose results are due on Thursday, fell over

1%.

With lofty valuations driving rotation into undervalued

areas of the market, the group's capital plans will be closely

watched as investors question whether AI spending will ​drive

returns.

Meta and Microsoft ( MSFT ) slipped over 0.3% while Tesla gained

0.8%. Bellwether IBM ( IBM ), also due to report after the

market closes, was flat.

"We're still in the early innings. The last phase of it is

end users adopting and we're still in the early phases of

business adoption," said Glenn Dorsey, head of client portfolio

management at Clark Capital.

"You're starting to see a point where their growth rate is

slowing somewhat. It creates a potential normal volatility

year."

Among earnings-driven moves, Texas Instruments ( TXN )

surged 8% after the analog chipmaker forecast first-quarter

revenue and profit above Wall Street estimates. ​Starbucks

rose 1.8% after posting a bigger-than-expected increase

in first-quarter comparable sales. AT&T ( T ) climbed 5.2% after

the U.S. carrier projected annual profit above market

expectations.

In industrials, Textron ( TXT ) fell 8.4% after guiding

fiscal profit below estimates, while Otis dropped 3%

after its fourth-quarter revenue missed expectations.

Seagate Technology ( STX ) jumped 20.3% after it forecast

third-quarter revenue and profit ‍above Wall Street expectations.

Rival Western Digital ( WDC ) rose 10%.