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US weekly jobless claims unchanged

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Semiconductor index hits fresh record high

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Indexes up: Dow 0.35%, S&P 1.08%, Nasdaq 1.64%

(Updated prices at 02:30 p.m ET/ 1930 GMT)

By Sinéad Carew and Bansari Mayur Kamdar

March 7 (Reuters) - Wall Street's main indexes climbed

on Thursday, with the S&P 500 and Nasdaq both hitting intraday

record highs with support from technology and growth stocks and

investor optimism about prospects for rate cuts from the Federal

Reserve.

In particular, the Philadelphia Semiconductor index

outperformed the broader market and hit a record high. The top

percentage gainer was ON Semiconductor, up 7.8%.

Fed Chair Jerome Powell said the U.S. central bank is "not

far" from being confident that inflation is declining toward the

2% target, which would make rate cuts possible.

His comments reinforced investor hopes for a first rate cut

in June, boosting equity indexes that had faltered in the days

leading up to the testimony.

Also the number of Americans filing new claims for

unemployment benefits was unchanged as the labor market

continued to ease, Labor Department data showed.

This followed private payrolls, job openings, quit rate and

unemployment claims data that gave investors a picture of a jobs

market that was softening but still solid.

Powell "essentially left rate cuts on the table for this

year. That's what markets wanted to hear," said Anthony

Saglimbene, Chief Market Strategist, Ameriprise Financial.

"The market's also responding well to the employment

data we've had so far this week," he said. "It adds to the

narrative that we're starting to see employment slow but still

solid."

But Saglimbene noted investors will still anxiously

monitor the nonfarm payrolls report on Friday for further

details on the labor market.

Chris Larkin, managing director for trading and

investing at E*TRADE from Morgan Stanley said "sentiment could

evaporate quickly if tomorrow's monthly jobs report fails to

point in the same direction" as earlier data.

Also on Thursday, Fed Governor Michelle Bowman said the

U.S. economy is not at the point where the central bank should

reduce interest rates.

At 02:30 p.m. the Dow Jones Industrial Average

rose 135.11 points, or 0.35% , to 38,796.75, the S&P 500

gained 54.88 points, or 1.08%, to 5,159.64 and the Nasdaq

Composite gained 263.68 points, or 1.64%, to 16,295.22.

Nine the 11 major S&P 500 sectors rose, with communications

services and information technology stocks

jostling for position as the biggest gainer. Tech last had the

lead with a 2% gain while communications services was up 1.9%.

Megacap growth stocks were major contributors to index

gains including social media company Meta, up 3.3%, and

AI chip darling Nvidia ( NVDA ), which was up 4%.

Lingerie maker Victoria's Secret & Co was down

31.3% on a weak annual forecast.

Leading the S&P 500 gains was Kroger Co ( KR ), up 9.7%. The

grocer had forecast annual sales and profit largely above Wall

Street estimates as it bet on higher demand for groceries at its

stores, tighter cost control and strength in its private-label

brands.

Advancing issues outnumbered decliners by a 2.84-to-1 ratio

on the NYSE where there were 654 new highs and 44 new lows.

On the Nasdaq 2,565 stocks rose and 1,648 fell as

advancing issues outnumbered decliners by about a 1.56-to-1

ratio. It recorded 314 new highs and 80 new lows.

The S&P 500 posted 77 new 52-week highs and one new low.