Updates to afternoon

By Caroline Valetkevitch

NEW YORK, Nov 3 (Reuters) - Most major stock indexes were higher on Monday following news Amazon.com AMZN.O will supply cloud-computing services to OpenAI, and the dollar hovered near a three-month high versus the euro due to waning expectations for hefty U.S. rate cuts.

The multi-year $38 billion Amazon-OpenAI deal provided some support to equities, with Amazon shares more than 4% higher.

The Federal Reserve last week cut interest rates as expected. But Chair Jerome Powell said another cut in December was "not a foregone conclusion", contrary to some investors beliefs that it was essentially a done deal.

Some Fed officials on Friday aired their discomfort with the central bank's decision to cut rates, even as influential Fed Governor Christopher Waller made the case for more policy easing to shore up a weakening labor market.

Investors have been without most U.S. economic data releases given the ongoing U.S. government shutdown.

"Investors are optimistic about AI and progress with China with respect to the trade truce. But as the market opened, we're seeing a tale of two tapes," said Adam Sarhan, chief executive of 50 Park Investments in New York.

"The AI and tech stocks are up today and just about everything else is down. Clearly the narrowing of leadership continues in a very apparent way," he said.

TRUMP'S TARIFFS GO TO SUPREME COURT

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 .DJI fell 178.13 points, or 0.37%, to 47,384.74, the S&P 500 .SPX rose 13.39 points, or 0.19%, to 6,853.36 and the Nasdaq Composite .IXIC rose 108.07 points, or 0.46%, to 23,833.03.

MSCI's gauge of stocks across the globe .MIWD00000PUS rose 1.61 points, or 0.16%, to 1,007.84.The pan-European STOXX 600 .STOXX index rose 0.07%.

Investors will also get more quarterly results from technology companies this week.

Data analytics company Palantir Technologies PLTR.O is due to report after the closing bell. Palantir shares were up 2.8%. Semiconductor firm Advanced Micro Devices AMD.O and Qualcomm QCOM.O are also due to report this week, along with Uber UBER.N and fast-food chain McDonald's MCD.N.

U.S. megacap companies delivered a mixed bag of results last week. Investors are looking for a return on the extensive capital spending on AI.

DOLLAR GAINS AGAINST MAJOR CURRENCIES

The euro EUR=, which slipped as low as $1.1505 against the dollar, its weakest since August 1, pared losses to trade down 0.13% at $1.1519.

That followed data from the Institute for Supply Management 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 =USD, which measures the greenback against a basket of currencies, rose 0.07% to 99.87. Against the Japanese yen JPY=, the dollar strengthened 0.14% to 154.21.

Sterling GBP= weakened 0.08% to $1.314, ahead of a knife-edge Bank of England rate decision later this week.

Cryptocurrency bitcoin BTC= was down 2% at $107,486.

The yield on benchmark U.S. 10-year notes US10YT=RR rose 1.1 basis points to 4.112%, from 4.101% late on Friday.

U.S. crude CLc1 rose 7 cents to settle at $61.05 a barrel. Investors digested news that OPEC+ plans to end its supply increases.

(Additional reporting by Amanda Cooper in London and Ankur Banerjee in Singapore; Editing by Sonali Paul, Himani Sarkar, Emelia Sithole-Matarise, Alexander Smith, Joe Bavier and Aurora Ellis)

((caroline.valetkevitch@thomsonreuters.com))