(Updates with afternoon trading)

* Declines in chip stocks offset by staples, healthcare

* Amazon ( AMZN ), Meta, Apple ( AAPL ) and Microsoft ( MSFT ) to report later this

week

* Coca-Cola, Boeing ( BA ) gain after quarterly results

* S&P 500 +0.24%, Nasdaq -0.21%, Dow +1.10%

By Noel Randewich

July 28 (Reuters) - The S&P 500 climbed on Tuesday as gains

in Boeing ( BA ) and Coca-Cola helped offset tumbling chip stocks ahead

of quarterly reports from Apple ( AAPL ) and other tech companies this

week.

Global markets have been volatile this month as investors

worry that Alphabet, Microsoft ( MSFT ), Amazon ( AMZN ) and other technology

heavyweights may be overspending on AI data centers as they race

to dominate the emerging technology.

Microsoft ( MSFT ) rose 2.6% ahead of its report on

Wednesday, while Amazon ( AMZN ) climbed 0.1% ahead of its

results on Thursday.

Chipmakers that have benefited from heavy AI spending added

to recent losses, with the PHLX index losing 4.3%. It has

fallen over 20% from its record-high close on June 22, and it

remains up 56% in 2026.

Apple ( AAPL ) rose 0.8%, lifting its stock market value to $5

trillion for the first time.

The S&P 500 healthcare and consumer staples

indexes each rose more than 2%, while declining

chipmakers kept the tech index down 1.1%.

"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 4.5% after the beverage company raised

its annual revenue and profit forecasts.

Boeing ( BA ) jumped 4.9% after the airplane maker generated

positive free cash flow as its turnaround plans gained momentum.

FED DECISION IN FOCUS

The S&P 500 was up 0.24% at 7,430.73 points.

The Nasdaq declined 0.21% to 24,880.21 points, while the Dow

Jones Industrial Average was up 1.10% at 52,781.78 points.

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 15% after third-quarter sales forecasts

missed estimates, while contract research firm IQVIA Holdings ( IQV )

jumped 12% after lifting its annual profit forecast.

Oil prices offered some broader relief, with Brent falling 4% to

$84.58 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.

Advancing issues outnumbered falling ones within the S&P 500

by a 2.6-to-one ratio.

The S&P 500 posted 62 new highs and one new low; the Nasdaq

recorded 158 new highs and 182 new lows.