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Private payrolls data slows in May

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Nvidia ( NVDA ), TSMC touch record highs

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CrowdStrike ( CRWD ) gains after strong Q2 forecast

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HPE climbs after upbeat revenue forecasts

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Indexes up: Dow 0.26%, S&P 0.98%, Nasdaq up 1.67%

(Updates to 2:31 p.m. EDT)

By Chibuike Oguh

NEW YORK, June 5 (Reuters) - The S&P 500 and Nasdaq

indexes hit record intraday highs on Wednesday, powered mainly

by technology stocks as markets digested economic data that

could support a much-expected start to the Federal Reserve's

policy easing cycle.

The benchmark S&P 500 was set for another closing

record and surpassed its record intraday peak, while the Nasdaq

hit a new intraday high.

Technology stocks were leading advances among the

11 S&P 500 sectors, followed by equities in communications

and industrials sectors. Consumer staples

stocks were the biggest losers.

The May private payrolls report on Wednesday became the

latest data to suggest an easing in labor market tightness that

could propel the Fed to begin cutting rates this year. A report

on Tuesday showed job openings fell in April to the fewest in

more than three years.

"We're seeing the economic data starting to ease up a little

bit and the repercussions for that is that you're seeing the

pressure on rates come off the boil a little bit mixed in with

the potential for weaker economic data, which is a pretty good

recipe for the bond market," said Jack Janasiewicz, a portfolio

manager at Natixis Investment Managers Solutions in Boston.

Traders now see a nearly 69% chance of a September rate

reduction, according to the CME's FedWatch tool. Expectations

had hovered around 50% last week.

At 2:31 p.m. EDT, the Dow Jones Industrial Average

rose 100.17 points, or 0.26%, to 38,811.30, the S&P 500

gained 51.90 points, or 0.98%, to 5,343.24 and the Nasdaq

Composite gained 282.29 points, or 1.67%, to 17,139.36.

U.S. 10-year Treasury yields rebounded from a two-month low

but remained lower on the day after data showed that the U.S.

services sector snapped back into growth mode in May. Investors

now await the nonfarm payrolls report, due on Friday, for a

comprehensive view of the labor market.

Chip stocks leapt 4.2%, buoyed by Nvidia ( NVDA ) and

Taiwan Semiconductor Manufacturing, which rose 4.5% and

6.5%, respectively, both touching record highs.

Hewlett Packard Enterprise ( HPE ) rose 12% after

forecasting third-quarter revenue above Street expectations,

helped by upbeat demand for its AI servers.

Dollar Tree ( DLTR ) slipped 5.5% after a disappointing

quarterly profit forecast. The budget retailer said it would

explore options that include a potential sale or spinoff of

Family Dollar.

Intel ( INTC ) gained 2.4% after buyout firm Apollo Global

Management ( APO ) agreed to purchase a 49% equity interest for

$11 billion in a joint venture related to the chipmaker's

Ireland manufacturing unit.

CrowdStrike Holdings ( CRWD ) jumped 10% after forecasting

second-quarter revenue above estimates when markets closed on

Tuesday.

Advancing issues outnumbered decliners by a 2.17-to-1 ratio

on the NYSE. On the Nasdaq, 2,644 stocks rose and 1,547 fell as

advancing issues outnumbered decliners by a 1.71-to-1 ratio.

The S&P 500 posted 20 new 52-week highs and 8 new lows while

the Nasdaq Composite recorded 56 new highs and 102 new lows.