(Updates with midafternoon trading)

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Indexes up: Dow 0.32%, S&P 500 0.56%, Nasdaq 1.03%

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Intel ( INTC ) jumps as Nvidia ( NVDA ) takes $5 bln stake in co

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Small-cap Russell 2000 index up over 2%

By Abigail Summerville and Sukriti Gupta

Sept 18 (Reuters) - Wall Street's main indexes hit

intraday record highs on Thursday, a day after the U.S. Federal

Reserve delivered a quarter-point interest rate cut, while

chipmaker Intel ( INTC ) rose after Nvidia ( NVDA ) decided to build a stake in

the company.

Intel ( INTC ) jumped 23.1%, set for its biggest daily gain

since October 1987 after Nvidia ( NVDA ) said it would invest $5

billion in the struggling U.S. chipmaker. Peer Advanced Micro

Devices ( AMD ) slipped 2.3%.

Nvidia ( NVDA ) gained 3.6%, recovering losses from Wednesday when a

report said Chinese tech firms might stop buying its chips.

The semiconductor stock moves boosted a broader

semiconductor index 3.6% to a record high. The gains also

lifted the tech-heavy Nasdaq and the S&P 500 technology sector

, up 1.3%. Eight out of the 11 S&P 500 sectors rose.

The small-cap Russell 2000 index gained 2.2% and touched

an intraday record high of 2,466 points for the first time since

November. Small-cap companies are likely to perform better in a

low interest-rate environment.

On Wednesday, Fed Chair Jerome Powell emphasized that the

softening jobs market was a priority and indicated more

reductions could follow at upcoming policy meetings.

"We are looking for support for economic growth and

justification of stretched valuations and the prospect of lower

interest rates helps that," said Sam Stovall, chief investment

strategist at CFRA Research.

At 02:20 p.m. the Dow Jones Industrial Average

rose 146.47 points, or 0.32%, to 46,164.79, the S&P 500

gained 36.97 points, or 0.56%, to 6,637.43 and the Nasdaq

Composite gained 228.77 points, or 1.03%, to 22,490.27.

Conversely, the S&P 500 energy and consumer staples

were the biggest decliners, down 0.62% and 0.79%

respectively.

New data showed that the number of Americans filing new

applications for unemployment benefits fell last week, but the

labor market has softened as both demand for and supply of

workers have diminished.

The rate cut is expected to add to Wall Street's recent rally,

boosted by monetary policy easing hopes and a revival of

AI-linked stock trading. Investors are pricing in about

44.4 basis points in cuts by end-2025, data compiled by LSEG

showed.

Among stocks, CrowdStrike ( CRWD ) gained 12.4% after at least

nine brokerages raised their price target on the stock.

Shares of Darden Restaurants ( DRI ) fell 7.8% after the

Olive Garden ( DRI ) parent

reported

weak quarterly results.

Advancing issues outnumbered decliners by a 1.77-to-1 ratio

on the NYSE, and by a 2.46-to-1 ratio on the Nasdaq.

The S&P 500 posted 30 new 52-week highs and seven new

lows while the Nasdaq Composite recorded 138 new

highs and 36 new lows.