* Investors remain alert to geopolitical and inflation risks

* But with limited Fed guidance, they are looking to

earnings for market direction

* They see Jackson Hole symposium as next chance for Fed

policy clarity

By Laura Matthews

NEW YORK, Aug 14 (Reuters) - Investors head into next week

weighing familiar concerns over interest rates, inflation and

geopolitical tensions against another robust earnings season

that continues to keep stocks supported.

With little fresh guidance from policymakers and uncertainty

brewing over the U.S. Federal Reserve's next move, many

investors are increasingly looking to corporate earnings -

fueled in part by spending on AI infrastructure - to validate

bullish assumptions and offset macroeconomic risks.

"The primary thing is going to continue to be the Federal

Reserve," said Shawn Snyder, economic strategist at Potomac Fund

Management. He sees the August 27 to 29 Jackson Hole symposium

as the next major opportunity for policymakers to provide

clarity on how they are interpreting inflation and growth.

"If you can't look to the Fed for guidance, then you have to

increasingly look to earnings for guidance."

NEEDING REASSURANCE

For investors like Snyder, the focus is less on a specific rate

signal and more on whether policymakers can articulate a

credible framework for navigating inflation and growth after

bouts of mixed messaging.

That uncertainty has kept markets closely focused on real

Treasury yields - returns adjusted for inflation - a key driver

of asset prices. Rising yields can pressure technology stocks

and other long-duration assets by increasing financing costs.

The dynamic is particularly important for AI-related

companies and hyperscalers whose shares have been among the

market's biggest drivers this year.

The S&P 500 hit a record high on Thursday as technology

shares climbed and falling oil prices boosted risk appetite

after a softer-than-expected U.S. producer price report.

Treasury yields also fell as markets pared back rate-hike

expectations next month.

Stocks and the S&P 500 information technology index

have notched modest gains this week.

Even so, investors remain alert to signs inflation could

reaccelerate. Elevated energy prices and stalled U.S.-Iran talks

have raised concerns that oil markets could jolt higher,

potentially adding pressure to consumer prices and bond yields.

For now, however, strong corporate results have helped

contain volatility. About 85% of S&P 500 companies reporting

have beaten earnings estimates, with profits up 32.7% excluding

mark-to-market gains at Alphabet and Amazon, according to LSEG

data.

Earnings results from Walmart and chipmaker Analog Devices

will offer fresh clues into the health of the U.S. consumer and

broader economy.

"Not only have we seen earnings beats and revenue beats so

far, we're also seeing a lot of upside guidance as well and

limited downside guidance from companies. They're the ones

telling us, 'hey, the party is still on'," said Andy Pratt,

director of investment strategy at Burney Company. "When you

look at what are the things driving inflation right now, they're

... one-time shocks rather than something more persistent."

Earnings strength has been especially notable among companies

tied to AI-related infrastructure spending, a theme investors

expect to remain front and center in coming weeks.

'EARNINGS TRUMP ALL OTHER PROBLEMS'

For Chris Grisanti, chief market strategist at MAI Capital

Management, hyperscaler spending plans are among the most

important developments to watch. Recent earnings reports, he

said, have increasingly clarified which companies stand to

benefit most from the AI boom.

Big Tech's AI spending is set to rise past $700 billion this

year from $400 billion in 2025, and the scale of those

investments has fueled questions about whether hyperscalers can

generate sufficient returns to justify the massive capital

outlay.

Yet, Grisanti dismissed concerns that those companies are

overextending themselves financially, arguing their balance

sheets remain among the strongest in corporate America and that

aggressive investment reflects strong demand.

"If you were running that business, you would beg, borrow,

and steal to get more money to put into that business," he said,

referring to some of the fast-growing cloud businesses.

Still, investors acknowledge that oil prices and

geopolitical developments could yet complicate the inflation and

interest rate outlook. But after another earnings season marked

by upbeat guidance and heavy AI investment, many see corporate

America as the strongest current defense against those risks.

"It's a nice time to be an equity investor because earnings

trump all the other problems," said Grisanti. "I think that will

become clear as the second half (unfolds)."