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Private payrolls data slows in May

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CrowdStrike ( CRWD ) gains after strong Q2 forecast

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HPE climbs after upbeat revenue forecasts

(Updates to 4 p.m. EDT)

By Chibuike Oguh

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

indexes closed at record 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 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.

U.S. 10-year Treasury yields fell to a two-month low on

Wednesday after a report pointed to weaker-than-expected job

growth ahead of Friday's highly anticipated government

employment report for May.

According to preliminary data, the S&P 500

gained 62.30 points, or 1.18%, to end at 5,353.64 points,

while the Nasdaq Composite gained 329.34 points, or

1.95%, to 17,186.38. The Dow Jones Industrial Average

rose 95.39 points, or 0.25%, to 38,806.68.

Chip stocks leapt, buoyed by gains to Nvidia ( NVDA )

and Taiwan Semiconductor Manufacturing, which

both touched record highs.

Hewlett Packard Enterprise ( HPE ) rose after forecasting

third-quarter revenue above Street expectations, helped by

upbeat demand for its AI servers.

Dollar Tree ( DLTR ) slipped 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 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 after forecasting

second-quarter revenue above estimates when markets closed on

Tuesday.

The S&P 500's previous record-high close was 5,321.41 on May

21, and the Nasdaq's previous record close was 17,019.88 on May

28.