(Updates with morning prices)

By Ragini Mathur

Oct 30 (Reuters) - Canada's main stock index inched

upward on Thursday, led by technology and materials sectors, as

investors digested the tempered interest rate cut outlook in

both Canada and the U.S., alongside the new U.S.-China trade

agreement.

At 10:11 a.m. ET (1411 GMT), Toronto's S&P/TSX composite

index was up 0.3% at 30,223.34 points.

Wall Street indexes, however, trended downward following

mixed earnings reports from major technology companies and

remarks from Federal Reserve Chair Jerome Powell that cast doubt

on further rate cuts this year.

In Canada, rate cut expectations were similarly adjusted

after the central bank signaled a potential hold following a

quarter-point rate reduction and lowered economic growth

forecasts on Wednesday.

Traders are now pricing in about a 90% probability of a

pause at the next Bank of Canada meeting.

"We need to take a bigger picture view (as) absence of rate

cuts potentially signals some positives as well-namely, that

we're likely experiencing a more stable economic environment,"

said Josh Sheluk, portfolio manager at Verecan Capital

Management.

On the TSX, information technology shares rose

0.8%.

Materials also gained 0.9% as gold prices jumped

2%, supported by U.S. dollar weakness following the Fed's rate

decision.

The healthcare sector emerged as the top

performer, rising 2.9%, with drugmaker Bausch Health ( BHC )

jumping 14.6% after raising its full-year 2025 revenue outlook.

Heavyweight financials also traded positively with

0.2% gains.

On the trade front, U.S. President Donald Trump agreed to

roll back some tariffs on Chinese imports in exchange for

Beijing resuming soybean purchases, maintaining rare earth

exports, and strengthening efforts against fentanyl trafficking.

Investors, however, remain cautious, fearing the tariff

truce may prove short-lived given the history of promising trade

negotiations later derailed by complications.

The energy sector declined 0.7% as oil prices

fell, while investors evaluated the implications of the trade

agreement between the world's top oil consumers.