(Updates at market close)

* TSX ends up 0.5% at 35,749.70

* Eclipses Monday's record closing high

* Tech adds 5.1%, with Celestica ( CLS ) up 9.5%

* Materials group loses 1.6% as gold falls

By Fergal Smith

TORONTO, July 28 (Reuters) - Canada's main stock index rose

to another record high on Tuesday, benefiting from a global

rotation out of semiconductor stocks into sectors more favorable

for the domestic market.

The S&P/TSX Composite Index ended up 181.56

points, or 0.5%, at 35,749.70, eclipsing Monday's record closing

high.

* U.S. benchmark, the S&P 500, also rose as gains in Boeing

and Coca-Cola helped offset tumbling chip stocks ahead of

quarterly reports from Apple and other tech companies this week.

* "It's more of a rotation in the market," said Michael

Dehal, a senior portfolio manager at Dehal Investment Partners

at Raymond James, adding that investors were shifting out of

semiconductor stocks into financial and software stocks.

* The technology sector rose 5.1%, with shares of

Celestica ( CLS ) adding 9.5% after the electronic equipment

firm beat earnings estimates. Constellation Software ( CNSWF )

was another standout, adding 6.4%.

* Heavily weighted financials rose 1.1% and

consumer staples ended 2% higher.

* Investors were awaiting an interest rate decision by the

Federal Reserve on Wednesday, with the bar for an interest rate

hike likely higher than reflected in rate futures markets.

* "The Fed meeting tomorrow could probably dictate where we

go from here," Dehal said.

* The materials group, which includes metal

mining shares, was a drag, falling 1.6%, as the price of gold

dropped.

* Oil also lost ground, settling 4.1% lower at $79.26

a barrel, on cautious hopes that the pause in fighting between

the United States and Iran will lead to talks to end the war.

Energy was down 1%.