(For a Reuters live blog on U.S., UK and European stock

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May PPI falls unexpectedly, weekly jobless claims at

10-month

high

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Broadcom ( AVGO ) soars after FY forecast raise on AI chips

strength

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Tesla up as Musk says shareholders to approve his $56 bln

pay

package

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Nasdaq briefly touches fresh intraday high

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Indexes: Dow down 0.71%, S&P down 0.14%, Nasdaq up 0.10%

(Updated at 12:03 p.m. ET/1603 GMT)

By Lisa Pauline Mattackal and Johann M Cherian

June 13 (Reuters) - The S&P 500 and the Dow indexes

slipped on Thursday as investors weighed hawkish Federal Reserve

projections against data signaling cooling inflation, though

strength in chip stocks supported the Nasdaq.

Nasdaq component Broadcom ( AVGO ) soared 12.2% to hit a

record high after the chipmaker raised its forecast for revenue

from semiconductors used in artificial intelligence (AI)

technology. It also announced a 10-for-1 forward stock split.

AI chip leader Nvidia ( NVDA ) rose 2.8%, pushing the

Philadelphia SE Semiconductor Index 1% higher to an

all-time peak.

The information technology sector also hit a

record high, but nine of the other 11 major S&P 500 sectors were

in the red.

The S&P 500's pullback came a day after the index notched

its third consecutive record close.

A Labor Department report showed the U.S. producer price

index (PPI) unexpectedly fell 0.2% month-on-month in May,

compared with a 0.1% increase expected by economists polled by

Reuters.

Separately, the number of Americans filing new claims

for unemployment benefits increased to a 10-month high last

week.

Markets lifted bets on a September start to rate cuts to

nearly 68% from 60% before the data, according to the CME's

FedWatch tool.

That was despite policymakers projecting only one rate cut

this year in the Fed's policy statement on Wednesday, despite

softer-than-expected U.S. consumer inflation data.

"For the markets, there's some uncertainty - yesterday's

dot plot was hawkish because they went from three rate cuts to

one rate cut predicted in 2024," said Sonu Varghese, global

macro strategist at the Carson Group.

"Markets are reflecting that volatility," Varghese said, but

added he still sees a September rate cut on the table.

UBS Global Research said it now expects the Fed to cut

interest rates in December instead of September, while Goldman

Sachs and Morgan Stanley continue to expect the first cut in

September.

At 12:03 a.m. ET, the Dow Jones Industrial Average

was down 281.43 points, or 0.73%, at 38,430.78, the S&P 500

was down 8.78 points, or 0.16%, at 5,412.25, and the

Nasdaq Composite was up 18.07 points, or 0.10%, at

17,626.51.

Amid the optimism, questions also remained over whether

the economy was slowing too quickly, with an index of

economically sensitive small-cap stocks slipping 1.4%

after rising more than 2.4% across the last two sessions.

Tesla leapt 3.8% after Elon Musk said company

shareholders were voting to approve his $56 billion pay package

and to move the electric-vehicle maker's legal home to Texas.

Apple ( AAPL ) was flat after overtaking Microsoft as the

world's most valuable company earlier in the week.

Virgin Galactic ( SPCE ) plunged 14.7% a day after

announcing a 1-for-20 reverse stock split.

Declining issues outnumbered advancers for a 2.39-to-1 ratio

on the NYSE. Declining issues outnumbered advancers for a

2.35-to-1 ratio on the Nasdaq.

The S&P index recorded 13 new 52-week highs and 8 new lows,

while the Nasdaq recorded 43 new highs and 97 new lows.