The S&P 500 ended higher Tuesday as gains in Boeing and Coca-Cola helped offset tumbling chip stocks ahead of quarterly reports from Apple and other tech companies this week.
The S&P 500 climbed 0.21% to end the session at 7,428.78 points. The Nasdaq declined 0.22% to 24,876.91 points, while the Dow Jones Industrial Average rose 1.03% to 52,747.32 points.
Global markets have been volatile this month as investors worry that Alphabet, Microsoft, Amazon and other technology heavyweights may be overspending on artificial intelligence data centers as they race to dominate the emerging technology.
Microsoft rose 1.1% ahead of its report due Wednesday, while Amazon dipped 0.2% ahead of its results scheduled for Thursday.
Apple climbed almost 1% to $340.08. It hit a session high of $342.89, briefly lifting its stock market value to $5 trillion for the first time. The iPhone maker reports its results Thursday.
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Chipmakers that benefited from heavy AI spending added to recent losses, with the PHLX index losing 4.5%. It fell about 25% from its record-high close on June 22 but remains up 56% for the year so far.
The S&P 500 healthcare index jumped 2.4%, the consumer staples index added 2% and the materials index rose 1.7%, while declining chipmakers kept the tech index down 1.4%.
"What has been behind the move into these non-tech names? Part of it is value," said Ross Mayfield, investment strategy analyst at Baird in Louisville, Ky. "GDP is solid, the labor market continues to churn along and, in a lot of places, there's evidence that consumer spending is reaccelerating."
Coca-Cola rallied 5% after the beverage company raised its annual revenue and profit forecasts.
Boeing jumped 4.8% after the airplane maker generated positive free cash flow as its turnaround plans gained momentum.
The Federal Reserve is due to announce its interest-rate decision Wednesday. Traders see a 71% probability that the central bank will leave rates unchanged and a 29% chance of a 25-basis-point rate hike, according to CME's FedWatch tool.
Higher rates could further pressure AI companies that became more dependent on debt financing.
Corning tumbled 12% after third-quarter sales forecasts missed estimates, while contract research firm IQVIA Holdings jumped 14% after lifting its annual profit forecast.
Oil prices offered some broader relief, with Brent falling 4.8% to settle at $84.09 a barrel on expectations that tensions in the Middle East and in Ukraine would ease as the White House hosted Israel's Prime Minister Benjamin Netanyahu and Ukraine's President Volodymyr Zelenskyy.
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