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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 rises

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Weekly jobless claims below estimates

(updates at the close)

By Abigail Summerville and Sukriti Gupta

Sept 18 (Reuters) -

Wall Street's main indexes posted record-high closes 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 ) was on track 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.

Nvidia ( NVDA ) rose, recovering losses from Wednesday when a report

said Chinese tech firms might stop buying its chips.

The moves boosted a broader semiconductor index, and

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

sector.

The small-cap Russell 2000 index rose 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.

According to preliminary data, the S&P 500

gained 30.92 points, or 0.47%, to end at 6,631.27 points,

while the Nasdaq Composite gained 207.17 points, or

0.93%, to 22,468.50. The Dow Jones Industrial Average

rose 130.07 points, or 0.28%, to 46,148.39.

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

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

showed.

Among stocks, CrowdStrike ( CRWD ) gained after at least

nine brokerages raised their price target on the stock.

Shares of Darden Restaurants ( DRI ) fell after the Olive

Garden ( DRI ) parent

reported

weak quarterly results.