(Updated prices at 04:00 p.m ET/ 2100 GMT)

By Sinéad Carew and Bansari Mayur Kamdar

March 7 (Reuters) - Wall Street charged ahead on

Thursday, with the S&P 500 posting a record closing high, with

the biggest boosts from technology and growth stocks on investor

optimism about prospects for rate cuts from the Federal Reserve.

The Philadelphia Semiconductor index outperformed the

broader market and hit a record high as investors continued to

bet that chip companies would benefit from increasing demand

related to artificial intelligence.

In Washington, Fed Chair Jerome Powell told a U.S. Senate

committee that the U.S. central bank is "not far" from being

confident inflation is declining toward the 2% target, which

would make rate cuts possible.

His comments reinforced investor hopes for a first rate cut

in June and boosted equity indexes that had faltered in the days

leading up to his Congressional testimonies, which kicked off on

Wednesday with an appearance before the U.S. House Financial

Services Committee.

Also the number of Americans filing new claims for

unemployment benefits was unchanged as the labor market

continued to ease, Labor Department data showed.

This followed private payrolls, job openings, quit rate and

unemployment claims data that gave investors a picture of a jobs

market that was softening but still solid.

Powell "essentially left rate cuts on the table for this

year. That's what markets wanted to hear," said Anthony

Saglimbene, Chief Market Strategist, Ameriprise Financial.

"The market's also responding well to the employment data

we've had so far this week," he said. "It adds to the narrative

that we're starting to see employment slow but still solid."

But Saglimbene noted investors will still anxiously

monitor the nonfarm payrolls report on Friday for further

details on the labor market.

According to preliminary data, the S&P 500

gained 52.60 points, or 1.04%, to end at 5,157.99 points,

while the Nasdaq Composite gained 241.86 points, or

1.51%, to 16,273.41. The Dow Jones Industrial Average

rose 127.58 points, or 0.33%, to 38,788.63.

"Everybody is waiting for something bad to happen but

nothing bad has happened to the economy, markets, earnings and

policy," said John Augustine, chief investment officer at

Huntington Private Bank. "That's why we're building momentum."

Shares in lingerie retailer Victoria's Secret & Co

fell sharply on a weak annual forecast.

Kroger Co ( KR ) shares rallied after the grocer forecast

annual sales and profit largely above Wall Street estimates as

it bet on higher demand for groceries at its stores, tighter

cost control and strength in its private-label brands.