* Indexes: Dow up 0.88%, S&P 500 flat and Nasdaq down

0.31%

* Alphabet rises after strong results

* Meta, Microsoft ( MSFT ) fall on capex concerns

* Eli Lilly ( LLY ) gains after lifting forecast

(Updates to market open)

By Niket Nishant and Utkarsh Hathi

April 30 (Reuters) - The S&P 500 and the Nasdaq were on

course to end April with the biggest gains since 2020,

highlighting how resilient corporate earnings have helped steady

investor nerves despite a historic supply shock in the oil

markets.

The rally shows that investors are leaning heavily on

earnings resilience to look past geopolitical turmoil, but that

increases the risk of a quick tumble if companies begin to

signal that war-driven costs were squeezing growth.

"I think there's this big tug of war, but the earnings side

is winning so far," said Angelo Kourkafas, senior global

investment strategist at Edward Jones.

"Market is trying to look through that near-term

uncertainty, but of course, the longer it lasts, the more acute

the pressures are."

At 10:14 a.m. ET on Thursday, the Dow Jones Industrial

Average rose 429.39 points, or 0.88%, to 49,233.73, the

S&P 500 was flat at 7,138.78 and the Nasdaq Composite

dropped 77.65 points, or 0.31%, to 24,595.59.

However, the S&P 500 was headed for its biggest monthly gain

since November 2020, the Nasdaq was on pace for its best month

since April 2020 and the blue-chip Dow cruised toward its

strongest month since November 2024.

Data released on Thursday showed that U.S. economic growth

picked up in the first quarter on a rebound in government

spending, but the increase is likely temporary as the war with

Iran drives up gasoline prices and squeezes household budgets.

Big Tech earnings were largely strong, with shares of Google

parent Alphabet rising 6.1% to hit a record high

following a record quarter for its cloud unit.

However, Meta Platforms ( META ) and Microsoft ( MSFT ) fell

8.4% and 4.8%, respectively, a day after they laid out

theircapital spending plans, while Amazon ( AMZN ) dipped 2.1%

following results, despite exceeding cloud sales expectations.

Seven of the main S&P 500 sectors were in the green, with

the S&P 500 utilities sector leading gains with 1.6%

rise.

Investors were also assessing commentary from Federal

Reserve Chair Jerome Powell on Wednesday. The central bank voted

to keep interest rates unchanged, but three officials signaled

that inflation was too high to signal a bias toward rate cuts.

Brent crude futures hit their highest in nearly four

years on fears of a protracted disruption in oil markets, after

an Axios report said President Donald Trump was slated to

receive a briefing from the leader of the U.S. Central Command

on new plans for potential military action against Iran.

"There also appears to be an increased urgency from the

Trump administration to bring things to a head," said David

Morrison, senior market analyst at Trade Nation.

Oil prices retreated from their peaks, but remain elevated,

around $110 a barrel.

The Axios report undermined weeks of optimism that

diplomatic efforts to resolve the U.S.-Iran war would stay on

track despite setbacks.

Among other stocks, Eli Lilly ( LLY ) gained 7% after the

drugmaker lifted its annual profit forecast on sustained

weight-loss drug demand.

Caterpillar ( CAT ) shares rose 8.4% to reach a record high

after the construction and mining equipment maker reported

higher first-quarter profit.

Advancing issues outnumbered decliners by a 2.14-to-1 ratio

on the NYSE and by a 1.6-to-1 ratio on the Nasdaq.

The S&P 500 posted 20 new 52-week highs and 13 new lows,

while the Nasdaq Composite recorded 54 new highs and 71 new

lows.

(Reporting by Niket Nishant and Utkarsh Hathi in Bengaluru;

Editing by Devika Syamnath and Shinjini Ganguli)