*

May PPI falls unexpectedly, weekly jobless claims at

10-month

high

*

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

strength

*

Indexes: Dow down 0.2%, S&P 500 up 0.1%, Nasdaq up 0.2%

(Updates to 2:30 p.m.)

By Caroline Valetkevitch

NEW YORK, June 13 (Reuters) -

The S&P 500 and Nasdaq edged higher on Thursday afternoon as

technology shares rallied, but gains were subdued a day after

the Federal Reserve projected only one interest rate cut this

year.

The number of Americans filing new claims for

unemployment benefits increased last week and another report

showed producer prices unexpectedly fell in May, helping to keep

alive hopes of a September rate cut.

Both the S&P 500 technology sector and an

index of semiconductors rose more than 1%.

Shares of Broadcom ( AVGO ) jumped 12.2% and hit a

record high after the chipmaker raised its forecast for revenue

from semiconductors used in artificial intelligence technology.

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

"You've got good news from tech and good news on the

inflation front ... but in the near term we should get some

consolidation, which would be good," said Larry Tentarelli,

founder of Blue Chip Daily Trend Report, a research publication.

"Longer term, the up trend is pretty strong."

The Dow Jones Industrial Average fell 87.69 points,

or 0.23%, to 38,624.52. The S&P 500 rose 5.59 points, or

0.10%, to 5,426.62 and the Nasdaq Composite climbed

40.98 points, or 0.23%, to 17,649.42.

If the S&P 500 and Nasdaq end firmer, it would be their

fourth straight day of all-time closing highs.

The Fed on Wednesday projected only one rate cut this

year. Its March projections included three

quarter-percentage-point reductions.

UBS Global Research said it now expects the Fed to cut rates

in December instead of September, while Goldman Sachs ( GS ) and Morgan

Stanley ( MS ) continue to expect the first cut in September.

Still, some investors are wondering whether the economy

is slowing too quickly.

The industrials index was down 0.8%.

Declining issues outnumbered advancers on the NYSE by a

1.76-to-1 ratio; on Nasdaq, a 2.06-to-1 ratio favored decliners.

The S&P 500 posted 13 new 52-week highs and nine new

lows; the Nasdaq Composite recorded 46 new highs and 113 new

lows.

(Additional reporting by Lisa Mattackal and Johann M Cherian in

Bengaluru; Editing by Devika Syamnath and Richard Chang)