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Indexes up: Dow 0.23%, S&P 500 0.63%, Nasdaq 1.2%

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Amazon ( AMZN ) jumps as cloud growth beats expectations

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Apple ( AAPL ) forecasts upbeat holiday-quarter iPhone sales

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Warner Bros jumps after Reuters report of Netflix ( NFLX ) bid

(Updates on market open)

By Pranav Kashyap and Nikhil Sharma

Oct 31 (Reuters) - U.S. stock indexes rose on Friday, on

track to end October with solid gains, as Amazon's ( AMZN ) upbeat

earnings outlook helped ease jitters around AI overspending.

Amazon ( AMZN ) shares jumped 11% to an all-time high after

the online retailer forecast quarterly sales above estimates,

helped by cloud revenue rising at the fastest clip in nearly

three years.

Apple's ( AAPL ) forecast for iPhone sales in the holiday

quarter surpassed Wall Street expectations, but CEO Tim Cook

flagged supply constraints. Its shares were last down 0.3%.

Nvidia ( NVDA ), which became the first publicly listed firm

to surpass $5 trillion in market value earlier this week, rose

1.6% after CEO Jensen Huang said he hoped the company's

state-of-the-art Blackwell chips can be sold in China.

AI frenzy pushed Wall Street to record highs earlier this

week before concerns about major spending from Microsoft ( MSFT )

and Meta as well as doubts about further

interest rate cuts from the Federal Reserve spooked investors.

Still, for the month, the S&P 500 was up 2.6%,

putting it on track for a sixth straight monthly gain - its

longest such streak since August 2021.

The Nasdaq Composite was on pace for a seventh

consecutive monthly advance, while the Dow was set for its sixth

straight monthly win - their longest runs since January 2018.

At 10:50 a.m. ET, the Dow Jones Industrial Average

rose 111.01 points, or 0.23%, to 47,633.13, the S&P 500

gained 43.27 points, or 0.63%, to 6,865.61 and the Nasdaq

Composite gained 282.67 points, or 1.20%, to 23,863.81.

While expectations for faster U.S. rate cuts buoyed stocks

earlier in the month, markets are still adjusting to a shift in

policy outlook after the central bank delivered a widely

expected quarter-point rate cut but signaled that another move

in December was not a "foregone conclusion".

Odds of a 25 bps cut in December have fallen since, with

traders now pricing in a 62.8% chance of such a move versus 91%

just a week ago.

"Recently we've kind of seen an everything rally, and

that's because we are getting into this area where interest

rates start to matter and interest rates are going lower," said

Dennis Dick, chief strategist at Stock Trader Network.

"The market believes that the next Fed meeting is

probably going to be a lot more dovish than Powell was."

Of the 278 S&P 500 companies that have reported

third-quarter results so far, 83.1% have surpassed analysts'

estimates, according to LSEG data. That's well above the

historical average, where roughly 67% of firms beat forecasts.

In other moves, Warner Bros Discovery ( WBD ) rose 3.5%

following a Reuters report that Netflix ( NFLX ) was actively

exploring a bid for the company's studio and streaming business.

Netflix ( NFLX ) added 3.7% as it unveiled plans for a 10-for-1 stock

split.

Getty Images ( GETY ) rose 14% after signing a global

multi-year licensing agreement with Perplexity AI.

Western Digital ( WDC ) jumped 7.3% to an all-time high

after forecasting quarterly earnings above Wall Street

estimates.

Solar panel maker First Solar ( FSLR ) surged 12.9% to a

more than one-year high after surpassing expectations for third

quarter sales.

Advancing issues outnumbered decliners by a 1.45-to-1

ratio on the NYSE, and by a 1.59-to-1 ratio on the Nasdaq.

The S&P 500 posted 15 new 52-week highs and 33 new lows

while the Nasdaq Composite recorded 50 new highs and 113 new

lows.

(Reporting by Pranav Kashyap and Nikhil Sharma in Bengaluru;

Editing by Mrigank Dhaniwala, Krishna Chandra Eluri and Devika

Syamnath)