(Recasts with preliminary close of trading, adds analyst

comment)

* U.S. chipmakers dip after Broadcom's ( AVGO ) quarterly results

* CrowdStrike ( CRWD ) slumps on rise in quarterly operating

expenses

* Weekly jobless claims increase more than expected;

AI-related layoffs on the rise

By Stephen Culp and Medha Singh

NEW YORK, June 4 (Reuters) - Wall Street advanced on

Thursday as progress toward ending the Iran war buoyed investor

sentiment, while disappointing results from Broadcom ( AVGO ) led a chip

selloff that held the Nasdaq's gains in check.

The blue-chip Dow surged, hitting a record closing high with

a boost from healthcare and financial stocks.

The S&P 500 posted more muted gains, while the Nasdaq ended

essentially unchanged.

Chipmaker Broadcom missed revenue expectations, sending

its shares tumbling and casting a pall over the AI frenzy, which

has sent chip stocks soaring so far this year.

"About the only blemish on the market at this point is

Broadcom ( AVGO ), and I think investors are buying the dip," said Paul

Nolte, senior wealth adviser and market strategist at Murphy &

Sylvest in Elmhurst, Illinois. "I don't think investors have

given up on chips yet, but what they've yet to come to grips

with, 'Is this real? Are these valuations legitimate?' I'm not

sure yet that investors have really questioned that."

The U.S. House of Representatives passed a measure on Wednesday

that would block President Donald Trump from continuing the war

on Iran.

Additionally, a U.S.-mediated ceasefire agreement between Israel

and Lebanon, an essential condition of an Iranian agreement to a

peace deal, bolstered optimism of a near-term resolution to the

war. But the truce was rejected by the pro-Iran Hezbollah, which

said it would not withdraw troops from Lebanon.

A drop in front-month crude futures reflected hopes that

tanker traffic through the crucial Strait of Hormuz could

shortly resume.

"How many deals have we had? It's always right around the

corner, a corner we've yet to reach," Nolte added. "Things are

moving, but are they moving at a pace that's going to allow the

world to get back to what passes for normal in a few weeks, a

few months, or maybe sometime next year?"

On the economic front, initial jobless claims unexpectedly

rose 6.1%, and first-quarter labor costs and productivity were

revised sharply lower. A report from Challenger, Gray and

Christmas showed layoffs announced by U.S. corporations jumped

11% in May to 97,006. Nearly 40% of those layoffs were

attributed to AI.

According to preliminary data, the S&P 500 gained

31.14 points, or 0.41%, to end at 7,584.82 points, while the

Nasdaq Composite lost 19.72 points, or 0.07%, to

26,834.26. The Dow Jones Industrial Average rose 875.09

points, or 1.73%, to 51,562.16.

Chipmaker Marvell Technology gained, while Advanced

Micro Devices ( AMD ), Micron Technology ( MU ) and Qualcomm ( QCOM )

lost ground on the day.

The healthcare sector got a boost from UnitedHealth ( UNH )

after Bank of America raised its rating on the healthcare

conglomerate's shares to "buy."

The financial index's rebound followed a sharp selloff in

the previous session due to revived concerns over private

credit.

Blackstone shares advanced after it became the latest

asset manager to cap withdrawals from its flagship private

credit fund following a rise in redemption requests.

Cybersecurity firm CrowdStrike ( CRWD ) slumped after reporting

an increase in quarterly operating expenses.

An investor roadshow for Elon Musk-led SpaceX began on

Thursday ahead of its market debut on June 12. It aims to raise

$75 billion in a record IPO that would value it at $1.75

trillion.