* Indexes: Dow up 1.03%, S&P down 0.18%, Nasdaq down

0.80%

* U.S. chipmakers dip after Broadcom's ( AVGO ) quarterly revenue

miss

* CrowdStrike ( CRWD ) slumps on rise in quarterly operating

expenses

* Weekly jobless claims increase more than expected, data

shows

(Updates on market open)

By Medha Singh and Twesha Dikshit

June 4 (Reuters) - The S&P 500 and the Nasdaq dropped on

Thursday, as Broadcom's ( AVGO ) revenue miss pressured chip stocks,

while equity investors paused after a record-setting rally

lifted all three indexes to fresh highs.

Broadcom ( AVGO ) shares slumped 15% after the chipmaker

also stuck to its long-range forecast of $100 billion in sales

from its AI chips. The stock has climbed nearly 55% this quarter

and could shed nearly $350 billion in market value if losses

hold through the session.

The S&P 500 tech index dropped the most, down

2.2%, while the Philadelphia SE Semiconductor index

tumbled 4.4%.

Chipmakers Marvell Technology and Advanced Micro

Devices ( AMD ) were down about 5% each, while Micron Technology ( MU )

and Qualcomm ( QCOM ) fell 6.6% and 2.3%, respectively.

A rotation out of tech shares boosted other areas of the

market, with nine out of 11 major S&P 500 indexes in the green.

Healthcare shares added 2.4%, aided by a 5% advance

in UnitedHealth ( UNH ) after Bank of America raised its rating

on the healthcare conglomerate's shares to "buy".

This lifted the blue-chip Dow by 520.81 points, or

1.03%.

The financial index rose 1.8% after a sharp fall in

the previous session on renewed concerns over private credit.

Blackstone became the latest asset manager to cap

withdrawals from its flagship private credit fund following a

rise in redemption requests.

The rally on Wall Street has stalled this week as investors

weigh a renewed flare-up in hostilities between the United

States and Iran.

"The shift feels less like a fundamental change in narrative

and more like a combination of profit-taking, stretched

positioning and a reassessment of geopolitical risks after weeks

of almost uninterrupted gains," said Daniela Hathorn, senior

market analyst at Capital.com.

Although the two sides agreed to a ceasefire in early April,

talks to end the war and reopen the Strait of Hormuz have made

little progress, threatening to keep oil prices elevated and

stoke inflation.

At 09:36 a.m. ET, the S&P 500 lost 13.59 points, or

0.18%, to 7,540.09 and the Nasdaq Composite lost 215.53

points, or 0.80%, to 26,638.44.

Weekly jobless claims data showed the number of Americans

filing claims increased more than expected last week, while

Wednesday's ISM survey showed the U.S. services sector expanded

in May.

Friday's broader monthly employment report will give new

Federal Reserve Chairman Kevin Warsh a fresh read on the U.S.

labor market as he heads into his first policy meeting this

month, at a time when U.S. consumers are under strain from Iran

war-driven price pressures.

Traders see a 75% chance of a 25-basis-point rate hike before

the end of the year, LSEG data showed.

Federal Reserve Bank of Richmond President Thomas Barkin and

San Francisco Fed President Mary Daly are also due to speak on

Thursday, among the last appearances before the Fed's

pre-meeting blackout period.

Among market movers, CrowdStrike ( CRWD ) slumped 8.5% after the

cybersecurity company reported a rise in its first-quarter

operating expenses.

An investor roadshow for Elon Musk-led SpaceX begins on

Thursday ahead of its market debut on June 12. It aims to raise

$75 billion in a record IPO that would value it at $1.75

trillion and rank it among the top 10 U.S.-listed firms.

Advancing issues outnumbered decliners by a 1.72-to-1 ratio

on the NYSE and by a 1.34-to-1 ratio on the Nasdaq.

The S&P 500 posted 7 new 52-week highs and no new lows while

the Nasdaq Composite recorded 21 new highs and 40 new lows.