Updates with early afternoon prices

By Pranav Kashyap and Nikhil Sharma

Oct 31 (Reuters) - U.S. stock indexes rose on Friday, putting them on track to close October in the green, after Amazon's upbeat earnings forecast helped ease concerns over Big Tech's heavy spending on artificial intelligence.

Amazon shares AMZN.O jumped 10.6% to an all-time high after the online retailer forecast quarterly sales above estimates, helped by cloud revenue rising at the fastest clip in nearly three years.

Apple's AAPL.O forecast for iPhone sales in the holiday quarter surpassed Wall Street expectations, but CEO Tim Cook flagged supply constraints. Its shares were last flat.

Nvidia NVDA.O, which became the first publicly listed firm to surpass $5 trillion in market value earlier this week, rose 1.6% after CEO Jensen Huang said he hoped the company's state-of-the-art Blackwell chips can be sold in China.

AI frenzy pushed Wall Street to record highs earlier this week before concerns about major spending from Microsoft MSFT.O and Meta META.O as well as doubts about further interest rate cuts from the Federal Reserve spooked investors.

Still, for the month, the S&P 500 .SPX was up 2.7%, putting it on track for a sixth consecutive monthly gain - its longest such streak since August 2021.

The Nasdaq Composite was on pace for a seventh consecutive monthly advance, while the Dow was set for its sixth straight monthly win - their longest runs since January 2018.

At 12:01 p.m. ET, the Dow Jones Industrial Average .DJI fell 31.46 points, or 0.07%, to 47,490.66, the S&P 500 .SPX gained 15.34 points, or 0.22%, to 6,837.68 and the Nasdaq Composite .IXIC gained 152.31 points, or 0.65%, to 23,733.45.

While hopes for faster U.S. rate cuts lifted stocks earlier this month, markets are now recalibrating after the Federal Reserve delivered a widely expected quarter-point cut but signaled another move in December was not a "foregone conclusion", shifting the policy outlook.

Traders have since pared bets on a December cut, with futures now pricing a 67.9% chance of a 25-basis-point move, down sharply from 91% a week ago.

Two regional Fed presidents also criticized the decision to ease policy, arguing that inflation remains too high and the labor market does not need additional support.

"Recently we've kind of seen an everything rally, and that's because we are getting into this area where interest rates start to matter and interest rates are going lower," said Dennis Dick, chief strategist at Stock Trader Network.

Of the 315 S&P 500 companies that have reported third-quarter results so far, 83.2% have surpassed analysts' estimates, according to LSEG data. That's well above the historical average, where roughly 67% of firms beat forecasts.

In other moves, Warner Bros Discovery WBD.O rose 1.9% following a Reuters report that Netflix NFLX.O was actively exploring a bid for the company's studio and streaming business.

Netflix added 3.6% as it unveiled plans for a 10-for-1 stock split.

Getty Images GETY.N rose 5% after signing a global multi-year licensing agreement with Perplexity AI.

Western Digital WDC.O gained 2% to an all-time high after forecasting quarterly earnings above Wall Street estimates.

Solar panel maker First Solar FSLR.O surged 12.6% to a more than one-year high after surpassing expectations for third quarter sales.

Advancing issues outnumbered decliners by a 1.21-to-1 ratio on the NYSE, and by a 1.31-to-1 ratio on the Nasdaq.

The S&P 500 posted 16 new 52-week highs and 34 new lows while the Nasdaq Composite recorded 94 new highs and 103 new lows.

(Reporting by Pranav Kashyap and Nikhil Sharma in Bengaluru; Editing by Mrigank Dhaniwala, Krishna Chandra Eluri and Devika Syamnath)

((pranav.kashyap@tr.com; +919886482111;))