(There will be no US equities report on Friday on account of

Good Friday. Reuters will resume coverage on Monday, April 1.)

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Semiconductor index set to end Q1 up over 17%

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US fourth-quarter growth revised up; weekly jobless claims

fall

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Dow close to hitting 40,000 mark

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Indexes up: Dow 0.06%, S&P 0.11%, Nasdaq 0.07%

(Updated at 10:03 a.m. ET/ 1403 GMT)

By Shashwat Chauhan and Bansari Mayur Kamdar

March 28 (Reuters) -

Wall Street edged higher on Thursday in thin trading ahead

of Easter break, while investors awaited data to gauge the

Federal Reserve's policy path on the last business day of a

strong first quarter.

The three main U.S. indexes were set for robust quarterly

gains, as an AI-fueled rally and optimism around the Fed's rate

cuts helped lift Wall Street to record highs this month.

The blue-chip Dow rose marginally in early trading

and remained on track to cross the 40,000 level for the first

time.

"The stock market performed extremely well during the first

quarter of 2024, and as long as earnings remain strong, the

market can continue to move higher," said Jeremy Straub, CEO and

chief investment officer at Coastal Wealth.

"First-quarter earnings season is likely to be the next

driver of market sentiment, which right now remains very

optimistic."

Data on Thursday showed the U.S. economy grew faster than

previously estimated in the fourth quarter, while a separate

report showed initial claims for state unemployment benefits

fell 2,000 to a seasonally adjusted 210,000 for the week ended

March 23.

Heading into the long weekend, focus will also be on the

Personal Consumption Expenditures Price Index (PCE), the Fed's

preferred inflation gauge, which is due on Good Friday, when the

U.S. stock market will be shut.

Overnight, Fed Governor Christopher Waller said recent

disappointing inflation data affirms the case for the central

bank to hold off on cutting its short-term interest rate target,

but did not rule out trimming rates later in the year.

Traders see a 64% chance the Fed will begin its easing cycle

in June, according to the CME FedWatch tool.

At 10:03 a.m. ET, the Dow Jones Industrial Average

was up 25.28 points, or 0.06%, at 39,785.36, the S&P 500

was up 6.02 points, or 0.11%, at 5,254.51, and the Nasdaq

Composite was up 10.75 points, or 0.07%, at 16,410.27.

Most megacap growth stocks slipped, weighing on the

tech-heavy Nasdaq.

Chipmaker Nvidia struggled for direction after

falling more than 2% in each of the last two sessions. The AI

winner is still set for more than 80% gains this quarter.

The Philadelphia Semiconductor Index inched up and

was on track to end its second straight quarter of double-digit

gains, up over 17% so far.

Two of the 11 major S&P 500 sectors declined, with

communication services slipping. The rate-sensitive

sector has been the best performer so far this quarter, along

with technology stocks

Cryptocurrency and blockchain-related companies advanced as

bitcoin recovered after a two-day slide. Exchange operator

Coinbase Global ( COIN ), software company MicroStrategy ( MSTR )

and crypto miner Riot Platforms ( RIOT ) rose nearly 2%

each.

Advancing issues outnumbered decliners by a 2.62-to-1 ratio

on the NYSE and by a 1.73-to-1 ratio on the Nasdaq.

The S&P index recorded 72 new 52-week highs and no new lows,

while the Nasdaq recorded 82 new highs and 20 new lows.