US STOCKS-Wall St holds firm after strong GDP report; Fed, tech earnings in focus

By Nikhil Sharma and Pranav Kashyap

July 30 (Reuters) - Wall Street held its ground on Wednesday, as investors digested robust GDP numbers and looked ahead to the Federal Reserve's policy decision and earnings from major technology companies.

At 09:43 a.m., the Dow Jones Industrial Average .DJI rose 1.42 points to 44,632.50, the S&P 500 .SPX gained 7.20 points, or 0.11%, to 6,378.06 and the Nasdaq Composite .IXIC gained 47.19 points, or 0.22%, to 21,145.48.

U.S. economic growth rebounded in the second quarter, beating expectations, but the reality remains grim as most of the boost came from waning imports, while domestic demand only inched higher.

"The market's taking some reassurance from the headline number, but the more you dig into it, the more concerned that you get," said Ben Laidler, head of equity strategy at Bradesco BBI.

"It puts the Fed in a tougher position, with the rise coming in higher than expected. There's a huge amount of tariff noise in this reading."

Following the data, traders dialed back their bets on a September Fed rate cut, with the odds slipping to 57% from 64%, according to CME's FedWatch tool.

While analysts anticipate little drama from the Fed decision, investors will be parsing Chair Jerome Powell's comments for any hints on future policy direction, especially as the central bank navigates political pressure and assesses the effects of tariffs on inflation.

The latest ADP report showed private payrolls grew by 104,000 in July, topping forecasts of 75,000, ahead of Friday's all-important nonfarm payrolls release.

Investors are now placing their bets on results from megacaps to steer Wall Street to new highs. Microsoft MSFT.O and Meta Platforms META.O will report their results after the market closes, while Amazon AMZN.O and Apple AAPL.O will report on Thursday.

A burst of upbeat earnings from consumer favorites underscored the resilience of American shoppers.

Starbucks SBUX.O posted better-than-expected third-quarter sales, but its shares slipped 1.3%.

Hershey HSY.N gained 4% on results that topped forecasts. VF Corp VFC.N, parent of Vans, jumped 22%, while Kraft Heinz KHC.O was largely steady after both companies beat quarterly revenue estimates, adding to the consumer-driven rally.

Still, caution crept into markets after U.S. President Donald Trump slapped a 25% tariff on Indian imports starting August 1, vowing no deadline extensions for trading partners without a deal in place.

Meanwhile, U.S.-China trade talks wrapped up with both sides seeking to extend their tariff truce, leaving the final call in Trump's hands.

South Korea was also lobbying to secure a trade deal ahead of Trump's August 1 deadline as its officials met U.S. Commerce Secretary Howard Lutnick in Washington.

Among other earnings moves, Humana HUM.N gained 10% after the health insurer raised its annual profit forecast.

Global payments processing company Visa V.N fell 2.3%, despite beating estimates for third-quarter earnings, as it kept its annual net revenue growth forecast unchanged.

Declining issues outnumbered advancers by a 1.18-to-1 ratio on the NYSE, while advancing issues outnumbered decliners by a 1.22-to-1 ratio on the Nasdaq.

The S&P 500 posted 14 new 52-week highs and four new lows, while the Nasdaq Composite recorded 25 new highs and 39 new lows.