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Indexes up: Dow 0.54%, S&P 500 0.20%, Nasdaq up 0.52%

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Nvidia ( NVDA ) hits $5 trillion in market value

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Alphabet, Microsoft ( MSFT ) and Meta to report after close

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Fed's monetary policy decision due at 2 p.m. ET

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Caterpillar ( CAT ) beats earnings estimates, shares surge

(Updates with analyst comments, early afternoon prices)

By Pranav Kashyap and Twesha Dikshit

Oct 29 (Reuters) - U.S. stocks rose to fresh peaks on

Wednesday, as Nvidia ( NVDA ) became the first company to crack $5

trillion in market valuation, while investors awaited a likely

rate cut from the Federal Reserve and a wave of results from

tech heavyweights.

Shares of Nvidia ( NVDA ) rose 2.2%, storming past the

milestone, after CEO Jensen Huang announced $500 billion in AI

chip orders and plans to build seven supercomputers for the U.S.

government.

The stock has risen more than 50% this year, leading the AI

rally on Wall Street. Apple ( AAPL ) and Microsoft ( MSFT )

topped $4 trillion in market cap on Tuesday, also on optimism

about AI deals.

Results from Meta, Microsoft ( MSFT ) and Alphabet

could make or break the AI trade that has been a

primary driver of the record-breaking U.S. stocks rally.

"Investors expect Nvidia ( NVDA ) and other tech companies to

continue to beat earnings estimates, not only for this quarter

but for future quarters. This bull market for tech remains very

much intact," said Sam Stovall, chief investment strategist at

CFRA Research.

Other than the results, investors are awaiting the U.S.

central bank's monetary policy decision at 2:00 p.m. ET. It is

widely expected to cut interest rates by a quarter of a

percentage point.

After nearly a month of a U.S. government shutdown that has

kept key economic data under wraps, investors will hunt for

clues on the Fed's rate path after leaning on private surveys

and corporate announcements to fill the void.

Traders are expecting another 25 basis point rate cut in

December and further easing next year.

Investors will also keep an eye on the central bank's plans

to end its "quantitative tightening" policy - a long-running

effort to shrink its balance sheet.

At 11:56 a.m., the Dow Jones Industrial Average rose

256.98 points, or 0.54%, to 47,963.35, the S&P 500 gained

13.72 points, or 0.20%, to 6,904.61 and the Nasdaq Composite

gained 123.39 points, or 0.52%, to 23,950.88.

U.S. indexes have hit a series of record highs in recent

days, driven by optimism around artificial intelligence,

expectations of rate cuts from the U.S. central bank and

positive earnings momentum.

Of the 222 companies in the S&P 500 that have reported so

far, almost 85% have posted earnings above analyst expectations,

according to data compiled by LSEG as of Wednesday. In a typical

quarter (since 1994), 67% of companies beat estimates and 20%

miss estimates.

Caterpillar ( CAT ) shares jumped nearly 10% on

third-quarter profit beat, while Boeing ( BA ) fell 3.8% after

the planemaker reported a charge of nearly $5 billion related to

delays in its 777X jet program.

Seagate Technology ( STX ) jumped 12.5% after forecasting

second-quarter earnings above estimates, lifting peers Western

Digital ( WDC ) 12% and SanDisk ( SNDK ) 10.2%. Verizon

rose 3% on beating estimates for profit and subscriber

additions. However, some defensive names lagged.

The S&P consumer staples sector fell 1.5% as Kraft

Heinz and Cadbury-maker Mondelez ( MDLZ ) cut profit

forecasts, sliding 4.8% and 3.5%, respectively.

Fiserv's ( FI ) shares slumped 39% and were on course for

their biggest percentage drop on record, after the company

lowered its annual earnings forecasts for the second time.

Meanwhile, U.S. President Donald Trump began the final leg

of his Asia trip, saying he had reached a deal with South Korea

and was optimistic about an agreement with China's Xi Jinping.

Talks between the two counterparts are set for Thursday in the

port city of Busan.