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TSMC rises on strong Q2 revenue growth

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Intuit to cut about 1,800 jobs; shares fall

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Illumina ( ILMN ) rises after acquiring Fluent BioSciences

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Indexes up: Dow 0.05%, S&P 0.25%, Nasdaq 0.48%

(Updated at 9:53 a.m. ET)

By Lisa Pauline Mattackal and Ankika Biswas

July 10 (Reuters) -

The Nasdaq and the S&P 500 hit record highs on Wednesday as

strength in Nvidia ( NVDA ) and other mega stocks supported Wall Street's

winning streak, which will be tested by key inflation data and

second-quarter earnings later this week.

Nvidia ( NVDA ) jumped 1.3% to hit a nearly three-week

high while Micron Technology ( MU ), Advanced Micro Devices ( AMD )

and ON Semiconductor rose about 1%, propelling

the SE Semiconductor index to a record high.

U.S.-listed shares of Taiwan Semiconductor Manufacturing Co

climbed 2.5% after the world's largest contract

chipmaker posted a second-quarter revenue beat.

Of the so-called "Magnificent Seven" stocks, Alphabet

and Microsoft ( MSFT ) rose 1% and 0.5%, respectively.

Apple ( AAPL ) also climbed 1%, to touch a record high, as U.S.

Treasury yields slipped.

The S&P 500 Tech Index topped sectoral

gainers, while Energy was the worst hit.

With just a handful of large-cap stocks supporting Wall

Street's banner rally this year, participants wonder when other

sections of the market will catch up, leading some to call for

greater diversification.

The S&P 500 and the Nasdaq notched their fifth straight

intraday record highs after hopes for an interest-rate cut in

September received a boost from Jerome Powell, who said the U.S.

was "no longer an overheated economy".

While Powell refrained from committing to a timeline for

rate cuts in his testimony to Congress on Tuesday, he is now

slated to appear before the House Financial Services Committee

for further questioning from lawmakers.

"Powell came in a little bit more dovish than we

expected... he's purposely trying to signal to markets that if

there is a good inflation print this week, September is back on

the table as a possibility for a rate cut," said Chris

Zaccarelli, chief investment officer for Independent Advisor

Alliance.

Bets on a 25-basis-point rate cut by September ticked up to

74%, up from around 70% on Tuesday and 45% a month ago,

according to CME's FedWatch. Comments from Fed officials Austan

Goolsbee, Michelle Bowman and Lisa Cook are also expected

through the day.

The focus will now shift to inflation data this week, with

the Consumer Price Index due on Thursday and the Producer Price

Index report on Friday.

The second-quarter earnings season, which kicks off this

week with major banks reporting on Friday, will be a key test

for whether high-flying megacaps can justify expensive

valuations and continue their strong runs.

At 9:53 a.m. ET, the Dow Jones Industrial Average was

up 17.83 points, or 0.05%, at 39,309.80, the S&P 500 was

up 14.12 points, or 0.25%, at 5,591.10, and the Nasdaq Composite

was up 87.84 points, or 0.48%, at 18,517.13.

TurboTax parent Intuit, which plans to lay off

about 10% of its workforce, lost 2.8%.

Gene-sequencing equipment maker Illumina ( ILMN ) jumped

2.6% on plans to acquire privately held Fluent BioSciences.

Advancing issues outnumbered decliners by a 2.46-to-1

ratio on the NYSE, and by a 1.67-to-1 ratio on the Nasdaq.

The S&P index recorded 17 new 52-week highs and six new

lows, while the Nasdaq recorded 25 new highs and 50 new lows.