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ISM non-manufacturing PMI stronger than forecast

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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: Dow down 0.01%, S&P up 0.67%, Nasdaq up 1.35%

(Updated at 12:20 p.m. ET/1620 GMT)

By Lisa Pauline Mattackal and Johann M Cherian

June 5 (Reuters) -

Technology stocks led U.S. indexes higher on Wednesday, as

investors strengthened bets for an earlier-than-expected start

to the Federal Reserve's policy easing cycle after multiple

reports signaled slowing growth in the world's largest economy.

The Nasdaq touched a record intraday high as

rate-sensitive megacap stocks such as Microsoft ( MSFT ) and

Amazon.com ( AMZN ) gained between 0.3% and 2.5%. Tech stocks

rose 1.8%, leading sectoral advances.

Meanwhile, the Philadelphia SE Semiconductor Index

leapt 3.5%. Shares of AI leader Nvidia ( NVDA ) and

Taiwan Semiconductor Manufacturing rose 2.9% and 7.0%,

respectively, both touching record highs.

Consumer staples led sectoral declines,

slipping nearly 0.7%.

U.S. Treasury yields slipped to two-month lows after the ADP

National Employment report showed private employers increased

their headcounts by 152,000 in April, significantly lower than

forecast.

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.

Separately, an Institute of Supply Management survey

showed

services sector activity

stood at 53.8 in May, better than the expectation of 50.8.

With major indexes near all-time highs, investors are

juggling worries of a weakening economy with hopes this would

lead to an earlier start to the Fed's rate cuts than previously

expected.

"It's a confusing time, but now everybody has put (the

likelihood of Fed cuts) together. The 10-year Treasury yield is

down, and there's a great correlation between that going down

and equities coming up," said Kim Forrest, chief investment

officer at Bokeh Capital Partners.

Investors now await the nonfarm payrolls report, due on

Friday, for a comprehensive view of the labor market.

"If we get a soft jobs number, that might show the soft

landing (for the U.S. economy) is happening," Forrest said.

At 12:20 p.m. ET, the Dow Jones Industrial Average

was down 4.89 points, or 0.01%, at 38,706.40, the S&P 500

was up 35.69 points, or 0.67%, at 5,327.03, and the Nasdaq

Composite was up 228.20 points, or 1.35%, at 17,085.25.

Hewlett Packard Enterprise ( HPE ) topped the benchmark

index with an

11.8

% rise after forecasting third-quarter revenue

above Street expectations

, helped by upbeat demand for its AI servers.

Dollar Tree ( DLTR ) reversed earlier gains, slipping 4.5%

after a disappointing quarterly profit forecast. The budget

retailer said it would explore options that include a potential

sale or spin-off of Family Dollar.

Intel ( INTC ) gained 2.0% 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 9.9% after forecasting

second-quarter revenue above estimates when markets closed on

Tuesday, helped by strong demand for its cybersecurity

offerings.

Advancing issues outnumbered decliners by a 1.92-to-1 ratio

on the NYSE, and by a 1.66-to-1 ratio on the Nasdaq.

The S&P index recorded

17

new 52-week highs and eight new lows, while the Nasdaq

recorded

48

new highs and

95

new lows.