* Indexes up: Dow 0.83%, S&P 0.61%, Nasdaq 0.41%

* SpaceX falls after reporting first earnings since going

public

* Eli Lilly ( LLY ) jumps after raising FY revenue forecast

* ADP data shows US economy added 44,000 jobs in July

(Updates for markets open)

By Johann M Cherian and Shashwat Chauhan

Aug 5 (Reuters) - The S&P 500 and the Dow traded at all-time

highs on Wednesday, as hopes of a Middle East peace breakthrough

offset the slide in shares of SpaceX and AMD after the upbeat

forecasts issued by the companies failed to impress investors.

Elon Musk-led SpaceX's revenue nearly doubled and

operating losses narrowed in its first earnings report since

going public, fueled by its booming Starlink satellite

communications and AI businesses.

But the rocket company's shares slid 12.5% in early trading

after executives flagged the spending spree underpinning its

lofty ambitions was far from over. Shares could face additional

pressure from the expiry of the stock's post-IPO lock-up period

starting on Thursday. Musk's other company, Tesla,

slipped 1.6%.

"This is the culmination of the story of this entire

earnings season. SpaceX beat analysts' expectations on revenue,

but spending on AI is getting out of hand, with no signs of

slowing down anytime soon," said Nic Puckrin, cross-asset

analyst and founder of Coin Bureau.

Advanced Micro Devices ( AMD ) forecast quarterly revenue

above estimates, reflecting strong AI demand. However, shares

slipped 6.5%, suggesting investors were looking for a stronger

outlook to justify the stock's 142% jump this year.

Rival Nvidia's ( NVDA ) shares, which have lagged AMD this

year, rose 3.4%, also underpinned by SpaceX's plans to use the

company's hardware exclusively to build its data centers.

Most megacap stocks gained, with Microsoft ( MSFT ) and

Alphabet up about 1% each.

Seven of the 11 S&P sectors were trading higher, with

healthcare leading gains with a 1.9% rise. Utilities

lagged with a near 1% fall.

Wednesday's moves built on Wall Street's rally spanning the

past few sessions that took the benchmark S&P 500 and the

blue-chip Dow to record highs as confidence in AI-related

stocks flourished.

At 9:34 a.m. ET, the Dow Jones Industrial Average

rose 450.80 points, or 0.83%, to 54,536.68, the S&P 500

gained 46.98 points, or 0.61%, to 7,783.50.

The Nasdaq Composite gained 109.43 points, or 0.41%,

to 26,694.42, hitting its highest in over a month.

Investors also weighed a slew of earnings from other

sectors. Drugmaker Eli Lilly was up 7.3% after raising

its full-year revenue forecast, while Disney ( DIS ) rose 2.9%

after beating third-quarter profit expectations.

Arista Networks ( ANET ) jumped 7.3%, as the networking

equipment maker forecast third-quarter revenue above estimates.

Uber ( UBER ) lost 5.5% after forecasting current-quarter

adjusted earnings below estimates.

On the data front, U.S. private payrolls growth slowed in

July, as per the ADP national employment report. The bigger

focus will be on the official non-farm payrolls figures on

Friday.

Data has broadly reflected robust economic performance, but

with Middle East tensions keeping energy costs elevated and the

Federal Reserve offering no forecasts on monetary policy,

uncertainty persists.

Minneapolis Fed President Neel Kashkariin an interview with

CNBC said he believed now is the time to start slowly moving

interest rates higher. At least two more top Fed officials are

expected to speak later in the day.

Advancing issues outnumbered decliners by a 1.26-to-1 ratio

on the NYSE and by a 1.13-to-1 ratio on the Nasdaq.

The S&P 500 posted 22 new 52-week highs and one new low,

while the Nasdaq Composite recorded 52 new highs and 25 new

lows.