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Indexes up: Dow 0.48%, S&P 500 0.31%, Nasdaq 0.19%

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Tariffs on Japanese autos cut to 15% from 27.5%

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AT&T ( T ) beats quarterly profit estimates, but shares slip

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Texas Instruments ( TXN ) slumps as tariff uncertainty hits demand

(Updates with market open prices)

By Nikhil Sharma and Pranav Kashyap

July 23 (Reuters) -

Wall Street climbed on Wednesday after President Donald

Trump secured a

trade deal

with Japan, sparking optimism for a flurry of new

agreements as the August 1 deadline looms.

The pact will slash tariffs on the Japanese auto sector to

15% from 27.5%, with duties on other goods also dropping to 15%

from 25%.

At 9:41 a.m. ET, the S&P 500 gained 20.11 points, or

0.31%, to 6,329.73 and the Nasdaq Composite gained 39.71

points, or 0.19%, to 20,932.40.

The Dow Jones Industrial Average rose 215.38 points,

or 0.48%, to 44,717.82, closing in on its all-time high.

Meanwhile, Wall Street's "fear gauge," the CBOE

Volatility Index, dipped to its lowest level in nearly

two weeks.

As U.S. and EU officials head into crucial trade talks,

hopes are high for a breakthrough agreement. However, the

European Commission signaled it's ready to

play hardball

, preparing to seek approval for 93 billion euros ($109

billion) in counter-tariffs on American goods.

"The United States has been working very hard on trying to

get a lot of trade deals in time before the August 1st deadline,

and it seems like they're starting to get some momentum. So I do

think this is a very positive sign," said Chris Zaccarelli,

chief investment officer at Northlight Asset Management.

Investors are now laser-focused on earnings from the

"Magnificent Seven" - the market's star performers who have

powered stocks to record highs.

Tesla and Alphabet are set to report

after the bell on Wednesday. With AI optimism running high and

valuations stretched, expectations for these tech giants are

sky-high, leaving little margin for disappointment.

In earnings-focused moves, GE Vernova's ( GEV ) shares

climbed 13.7% to an all-time high, as the power equipment maker

raised its current-year revenue and free cash flow forecasts

after beating Wall Street estimates for second-quarter profit.

Texas Instruments ( TXN ) tumbled 12.7% after its

quarterly profit forecast failed to impress investors, as it

pointed to weaker-than-expected demand for its analog chips from

some customers and underscored tariff-related uncertainty.

The earnings also weighed on its peer analog chipmakers,

with NXP Semiconductors ( NXPI ), Analog Devices ( ADI ) and ON

Semiconductor falling between 3.5% and 5.6%.

Toymaker Hasbro slipped 2.4% even after raising its

annual revenue forecast.

A 1.7% drop in AT&T ( T ) kept the communications sector

in the red, with all other sectors in positive

territory. The company's stock dropped despite beating quarterly

profit estimates.

In economic data, existing home sales numbers for June are

due on the day. Thursday's weekly jobless claims numbers and S&P

Global's flash PMI data will be closely assessed to gauge

economic health in the wake of tariff uncertainties.

Following a mixed set of economic data last week, traders

have ruled out an interest rate cut by the Federal Reserve next

week. Odds for a September reduction stand at 58%, according to

the CME FedWatch tool.

The Fed's July meeting will follow on the heels of

mounting concerns about its independence amid political

interference and President Trump's persistent attacks on Chair

Jerome Powell for his reluctance to cut rates.

Advancing issues outnumbered decliners by a 2.22-to-1

ratio on the NYSE and by a 1.76-to-1 ratio on the Nasdaq.

The S&P 500 posted 30 new 52-week highs and two new low,

while the Nasdaq Composite recorded 48 new highs and eight new

lows.