* Indexes up: Dow 0.99%, S&P 500 0.96%, Nasdaq 1.1%

* Nvidia ( NVDA ) up after report U.S. clears China chip sales

* Cisco ( CSCO ) surges to record high after lifting forecast

(Updates with afternoon levels)

By Ragini Mathur and Utkarsh Hathi

May 14 (Reuters) - The S&P 500 and the Nasdaq touched

fresh intraday record highs on Thursday, powered by Nvidia's ( NVDA )

gains and another rally in technology shares, as investors

assessed fresh economic data and a high-stakes U.S.-China

summit.

Nvidia ( NVDA ) rose 3.9%, giving the chipmaker a market

valuation of about $5.7 trillion, after Reuters reported citing

sources that the U.S. has cleared about 10 Chinese firms to buy

its second-most powerful AI chip, the H200.

The gains fueled a weeks-long rally in technology stocks,

especially chipmakers, that has helped drive Wall Street to

repeated records despite lingering concerns over the Middle East

conflict.

"Nvidia ( NVDA ) has clearly been a big beneficiary, both from the

China announcement and from the broader artificial intelligence

theme," said Chris Zaccarelli, chief investment officer at

Northlight Asset Management.

"The underlying AI theme and trend is real - we just think

investors may be pulling a little too much forward from the

future."

Meanwhile, Cisco ( CSCO ) soared 14.4% to an all-time high

after the tech networking giant said it would cut nearly 4,000

jobs as part of a restructuring, and raised its annual revenue

forecast after a surge in hyperscaler orders.

U.S. retail sales increased 0.5% in April, in line with

estimates, but some of the rise in receipts was likely due to

higher inflation as the war with Iran boosted prices of energy

products and other commodities.

Additionally, the number of Americans filing claims for

unemployment benefits increased moderately last week, pointing

to a stable labor market.

At 12:08 p.m. ET, the Dow Jones Industrial Average

rose 492.38 points, or 0.99%, to 50,185.58, the S&P 500

gained 71.35 points, or 0.96%, to 7,515.60 and the Nasdaq

Composite gained 294.47 points, or 1.12%, to 26,696.82.

The Dow was hovering near its all-time high.

Seven of the eleven main S&P 500 sectors were in positive

territory, with technology leading gains, rising 2.1%.

Software shares, which have struggled this year, also

advanced. The S&P 500 software index rose 1.4%,

though it remained down 16.3% year-to-date.

Financials gained 0.7%, with asset managers also

moving higher. Apollo Global, Blackstone and Ares

Management ( ARES ) rose between 3.3% and 4%.

Investors were also watching the U.S.-China summit, where

Chinese President Xi Jinping told President Donald Trump at the

start of two days of talks that trade negotiations were making

progress. Xi, however, warned that tensions over Taiwan could

put relations on a dangerous path and even risk conflict.

Trump's visit comes as markets remain focused on the war

with Iran. A White House official said the leaders of the

world's two largest economies agreed that the Strait of Hormuz

should remain open and that Iran should never obtain nuclear

weapons.

This week's stronger consumer prices and producer prices

readings have reinforced expectations that the Federal Reserve

will keep monetary policy restrictive for longer.

Advancing issues outnumbered decliners by a 2.43-to-1 ratio

on the NYSE, and by a 1.85-to-1 ratio on the Nasdaq.

The S&P 500 posted 25 new 52-week highs and 8 new lows while

the Nasdaq Composite recorded 87 new highs and 104 new lows.

(Reporting by Ragini Mathur and Utkarsh Hathi in Bengaluru;

Editing by Devika Syamnath)