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Microsoft ( MSFT ) advances after OpenAI restructuring deal

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Key results from megacap names due this week

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Nvidia ( NVDA ) will build AI supercomputers for US energy

department

By Caroline Valetkevitch

Oct 28 (Reuters) - All three major U.S. stock indexes

posted record closing highs again on Tuesday as Nvidia ( NVDA ) shares

gained following news it will build artificial intelligence

supercomputers for the U.S. energy department, and as investors

were optimistic about corporate earnings ahead of key results

from megacaps this week.

Nvidia's ( NVDA ) CEO, Jensen Huang, said the company will build

seven supercomputers for the U.S. Department of Energy, and said

the company has $500 billion in bookings for its AI chips.

Nvidia ( NVDA ) also announced new details with Finnish telecom equipment

maker Nokia to target the AI communications market.

Microsoft's ( MSFT ) shares also gained after the company

reached a deal that allows OpenAI to restructure into a public

benefit corporation while giving Microsoft ( MSFT ) a stake of 27% in the

ChatGPT maker.

Key quarterly results are expected this week from Apple ( AAPL )

, Microsoft ( MSFT ), Alphabet, Amazon ( AMZN ), and

Meta Platforms ( META ). Investors are anxious for details from

the companies on AI spending.

"Momentum and earnings are pushing the market higher," said

Peter Cardillo, chief market economist at Spartan Capital

Securities in New York, adding that there is also "enthusiasm

about Trump's Asian trip."

"Earnings have been good," he said. "Of course, we're

waiting for the big tech stocks."

Trump lavished praise on Japan's first female leader, Sanae

Takaichi, in Tokyo on Tuesday. They signed a deal to bolster

supplies of critical minerals and rare earths, as their nations

seek to reduce China's dominance of some areas of key electronic

components.

According to preliminary data, the S&P 500 gained

15.79 points, or 0.24%, to end at 6,890.95 points, while the

Nasdaq Composite gained 190.04 points, or 0.80%, to

23,827.49. The Dow Jones Industrial Average rose 162.06

points, or 0.34%, to 47,706.65.

United Parcel Service ( UPS ) shares rose after it forecast

fourth-quarter revenue above expectations. Rival FedEx ( FDX )

also gained.

QUARTERLY EARNINGS UP

Third-quarter earnings for S&P 500 companies are estimated

to have increased 10.5% from the year-ago period, up from

earlier estimates for the quarter, according to LSEG data.

The Federal Reserve is widely expected to announce this

week a cut in interest rates. Investors will be keen to get any

details on the rate outlook, especially given that the U.S.

government has been shut down for nearly a month, delaying

crucial economic data and forcing traders to rely on private

releases and corporate announcements.

A preliminary estimate of an ADP National Employment Report

showed the U.S. economy added an average of 14,250 jobs in the

four weeks ending October 11.