(Updates with closing US market levels)

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Dow ends lower; S&P 500 and Nasdaq up

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Dollar up slightly; Fed officials give conflicting views

on

economy

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Earnings focus on tech firms

By Caroline Valetkevitch

NEW YORK, Nov 3 (Reuters) - Most major stock indexes

climbed on Monday following news that Amazon.com ( AMZN ) will

supply cloud-computing services to OpenAI, and the dollar rose

to a three-month high versus the euro due to waning expectations

for hefty U.S. interest rate cuts.

The Federal Reserve last week eased rates as expected, but Chair

Jerome Powell said another cut in December was "not a foregone

conclusion," contrary to some investors' view that it was

essentially a done deal.

Fed officials on Monday continued to give conflicting views on

where the economy stands and the risks facing it, a debate set

to intensify as the ongoing U.S. government shutdown prevents

the release of official data. Traders are pricing in a roughly

70% chance of a 25 basis point cut in December, down from about

94% a week ago.

The multi-year $38 billion Amazon-OpenAI deal provided

support to equities, with Amazon's ( AMZN ) stock ending 4% higher.

"We're still looking at this as a market driven by the

technology revolution that is certainly in full swing given AI,"

said Tim Ghriskey, senior portfolio strategist at Ingalls &

Snyder in New York.

"I don't see that slowing down at all. The bigger companies

have these massive R&D budgets that are just going to keep

cranking out new things. We will continue to see that for the

foreseeable future."

TRUMP'S TARIFFS

The U.S. Supreme Court is considering the legality of President

Donald Trump's global tariffs, with arguments set for Wednesday.

Under one legal authority or another, Trump's tariffs are

expected to stay in place long-term.

The Dow Jones Industrial Average fell 226.19 points,

or 0.48%, to 47,336.68, the S&P 500 rose 11.77 points, or

0.17%, to 6,851.97 and the Nasdaq Composite climbed

109.77 points, or 0.46%, to 23,834.72.

MSCI's gauge of stocks across the globe

rose 1.47 points, or 0.15%, to 1,007.70.

The pan-European STOXX 600 index rose 0.07%.

Investors will also get more quarterly results from

technology companies this week.

After the closing bell, shares of data analytics company

Palantir Technologies ( PLTR ) were up about 1% as the company

reported

results and forecast fourth-quarter revenue above analysts'

estimates. Advanced Micro Devices ( AMD ), Qualcomm ( QCOM ),

Uber ( UBER ) and McDonald's are also due to report this

week.

U.S. megacap companies delivered a mixed bag of results last

week, and investors are looking for a return on the extensive

capital spending on AI.

DOLLAR GAINS AGAINST MAJOR CURRENCIES

The dollar extended its gains from last week against the

euro amid doubts about the outlook for another Fed rate cut this

year.

The euro, which slipped as low as $1.1505 against the

dollar, its weakest since August 1, pared losses to trade down

0.1% at $1.152225.

That followed Institute for Supply Management data showing

U.S. manufacturing contracted for an eighth straight month in

October as new orders remained subdued, and suppliers were

taking longer to deliver materials to factories against the

backdrop of tariffs on imported goods.

The dollar index, which measures the greenback

against a basket of currencies, rose 0.08% to 99.89. Against the

Japanese yen, the dollar strengthened 0.13% to 154.2.

Sterling weakened 0.12% to $1.3135, ahead of a Bank

of England rate decision later this week.

Cryptocurrency bitcoin was down 2.6% at $107,152.

U.S. Treasury yields rose amid high corporate debt issues

and as the government bond market kept last week's bearish tone.

The Treasury Department

released

its quarterly borrowing estimate of $569 billion in the

fourth quarter, $21 billion less than its July estimate.

The benchmark 10-year yield was last at 4.107%,

slightly higher than late last week. The two-year yield

of 3.6% was almost unchanged from Friday. The closely

watched part of the yield curve that plots two-year and 10-year

Treasuries

steepened

to 51 basis points.

U.S. crude rose 7 cents to settle at $61.05 a

barrel, while Brent crude futures rose 12 cents to

$64.89.

Investors weighed news that OPEC+ plans to end its supply

increases. Spot gold fell 0.03% to $4,000.26 an ounce.