*

Indexes up: Dow 0.6%, S&P 500 0.6%, Nasdaq 0.84%

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Apple ( AAPL ) rises as $100 bln manufacturing pledge eases tariff

fears

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Eli Lilly ( LLY ) falls after late-stage data for oral weight-loss

drug

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Weekly jobless claims rise to highest level in a month

(Updates with market open prices)

By Nikhil Sharma and Pranav Kashyap

Aug 7 (Reuters) -

Wall Street's main indexes advanced on Thursday, lifted by

hopes that technology giants might dodge President Donald

Trump's newest tariffs on chip imports.

Apple's ( AAPL ) shares climbed 2.4%, having risen 5.1% and

led gains on Wall Street in the prior session, after Trump said

the iPhone maker will invest an additional $100 billion in the

U.S., bringing its total commitment to $600 billion over the

next four years.

Trump also announced a tariff of about 100% on imports of

semiconductors but said it would not apply to companies that are

manufacturing in the U.S. or have committed to do so.

Shares of chipmakers Nvidia ( NVDA ) and Broadcom ( AVGO )

rose 1.3% each, while peer Advanced Micro Devices ( AMD )

advanced 3%.

The tech sector emerged as the top performer,

gaining 1.1%, while the healthcare sector fell to the

bottom.

Eli Lilly ( LLY ) dropped 11.2% after

reporting

data on its late-stage oral weight-loss drug. The drugmaker

also

raised

its full-year profit forecast.

At 9:36 a.m. ET, the Dow Jones Industrial Average

rose 263.08 points, or 0.60%, to 44,456.20, the S&P 500

gained 37.82 points, or 0.60%, to 6,382.88 and the Nasdaq

Composite gained 177.85 points, or 0.84%, to 21,347.27.

Trump's higher tariffs of 10% to 50% on dozens of

trading partners took effect on Thursday.

Fresh signs of a faltering labor market - especially

after a disappointing July payrolls report - have fueled

speculation that the Federal Reserve could soon kick off a

rate-cutting cycle.

Underscoring the jitters, new data showed

jobless claims came

in at 226,000 for the week of Aug. 2, surpassing

economists' expectations of 221,000.

"It's certainly validating the increase in jobless

claims we've been seeing, which also jives with the weakness we

saw in the employment report," said Ben Laidler, head of equity

strategy at Bradesco BBI.

"The narrative is clear, the economy is slowing. It may

not be headed towards recession, but it's definitely slowing."

Traders are now betting almost fully on a September rate

cut, with at least two moves expected this year, CME Group's

FedWatch tool showed.

Investors are also watching for Trump's interim replacement

for Fed Governor Adriana Kugler in the coming days, amid

expectations that the nominee would be a policy dove who will

likely favor bringing interest rates lower.

Kugler's resignation leaves an opening at the seven-member

Fed Board led by Chair Jerome Powell, who Trump has repeatedly

criticized for not cutting borrowing costs. Powell's tenure is

due to end in May.

Meanwhile, chipmaker Intel ( INTC ) lost 0.7% after

Trump called for its

chief executive's resignation

, saying, "the Intel ( INTC ) CEO is highly conflicted and should

resign immediately."

Second-quarter earnings barrage continued at full throttle.

DoorDash ( DASH ) topped revenue estimates and forecast a

stronger-than-expected gross merchandise value for the current

quarter. Its shares jumped 4.9%.

Datadog ( DDOG ) gained 6.2% after beating estimates for

second-quarter results.

Airbnb ( ABNB ) slumped 8.4% after the company

forecast

slower growth for the second half of the year.

Advancing issues outnumbered decliners by a 4.32-to-1

ratio on the NYSE and by a 2.32-to-1 ratio on the Nasdaq.

The S&P 500 posted 17 new 52-week highs and no new lows,

while the Nasdaq Composite recorded 41 new highs and 28 new

lows.