(For a Reuters live blog on U.S., UK and European stock

markets, click or type LIVE/ in a news window.)

*

Eli Lilly ( LLY ) slips on Novo's obesity drug update

*

Victoria's Secret slumps after weak annual forecast

*

Indexes up: Dow 0.57%, S&P 0.63%, Nasdaq 0.70%

(Updated at 9:32 a.m. ET/1432 GMT)

By Bansari Mayur Kamdar and Amruta Khandekar

March 7 (Reuters) - Wall Street's main indexes gained on

Thursday ahead of more commentary from Jerome Powell after the

Federal Reserve chair stuck to the script overnight by saying

the central bank still expects to cut rates later this year.

Powell said rate reductions will "likely be appropriate"

later this year, "if the economy evolves broadly as expected"

and once officials gain more confidence in inflation's steady

decline.

The comments kept alive investors' expectations of an

interest rate cut in June, giving a boost to U.S equities, which

had faltered in the days leading up to the testimony.

Wall Street's main indexes closed higher on Wednesday, with

rate-sensitive technology and chip stocks in the lead.

Most megacap growth and technology stocks rose in early

trading on Thursday.

Chip firms such as Nvidia ( NVDA ) and Micron Technology ( MU )

gained 1.4% and 2.3% respectively, extending their rally

from the previous session.

The Philadelphia semiconductor index hit a fresh

record high and was last up 1.8%.

All the 11 major S&P 500 sectors rose, with materials

and information technology leading the

charge.

"We listened to Powell yesterday and it sounds like there

will be at some point this year, a rate cut. We just don't know

when," said Joe Saluzzi, co-manager of trading at Themis

Trading.

Meanwhile, Fed Governor Michelle Bowman

said

the U.S. economy is not at the point where the central bank

should reduce interest rates.

All eyes will be back on Powell who is set to wrap up his

two-day testimony on Thursday.

The number of Americans filing new claims for

unemployment benefits was

unchanged

last week as the labor market continued to gradually ease,

the Labor Department's data showed.

The data comes ahead of the crucial nonfarm payrolls

report, which could provide further details on the strength of

the U.S. labor market on Friday.

"Even if the payrolls are stronger than expected, that's

not going to take the rate cut argument off. Unless you start to

see some extreme inflationary numbers, the odds are the cut is

coming," Saluzzi said.

At 9:32 a.m. ET, the Dow Jones Industrial Average

was up 219.73 points, or 0.57%, at 38,880.78, the S&P 500

was up 32.08 points, or 0.63%, at 5,136.84, and the Nasdaq

Composite was up 111.59 points, or 0.70%, at 16,143.14.

Lingerie maker Victoria's Secret & Co dropped 26.7%

on a weak annual forecast.

Eli Lilly ( LLY ) slipped 1.0% after rival Novo Nordisk said

early trial data for its highly anticipated experimental drug,

amycretin, showed that participants had a weight loss of 13.1%

after 12 weeks.

Advancing issues outnumbered decliners by a 5.27-to-1 ratio

on the NYSE and by a 2.45-to-1 ratio on the Nasdaq.

The S&P index recorded 39 new 52-week highs and no new lows,

while the Nasdaq recorded 46 new highs and 11 new lows.