NEW YORK, June 5 (Reuters) - The S&P 500 and Nasdaq indexes hit record intraday highs on Wednesday, powered mainly by technology stocks as markets digested economic data that could support a much-expected start to the Federal Reserve's policy easing cycle.
The benchmark S&P 500 (.SPX), opens new tab was set for another closing record and surpassed its record intraday peak, while the Nasdaq hit a new intraday high.
Technology stocks (.SPLRCT), opens new tab were leading advances among the 11 S&P 500 sectors, followed by equities in communications (.SPLRCL), opens new tab and industrials (.SPLRCI), opens new tab sectors. Consumer staples (.SPLRCS), opens new tab stocks were the biggest losers.
The May private payrolls report on Wednesday became the latest data to suggest an easing in labor market tightness that could propel the Fed to begin cutting rates this year. A report on Tuesday showed job openings fell in April to the fewest in more than three years.
"We're seeing the economic data starting to ease up a little bit and the repercussions for that is that you're seeing the pressure on rates come off the boil a little bit mixed in with the potential for weaker economic data, which is a pretty good recipe for the bond market," said Jack Janasiewicz, a portfolio manager at Natixis Investment Managers Solutions in Boston.
Traders now see a nearly 69% chance of a September rate reduction, according to the CME's FedWatch tool. Expectations had hovered around 50% last week.
At 2:31 p.m. EDT, the Dow Jones Industrial Average (.DJI), opens new tab rose 100.17 points, or 0.26%, to 38,811.30, the S&P 500 (.SPX), opens new tab gained 51.90 points, or 0.98%, to 5,343.24 and the Nasdaq Composite (.IXIC), opens new tab gained 282.29 points, or 1.67%, to 17,139.36.
U.S. 10-year Treasury yields rebounded from a two-month low but remained lower on the day after data showed that the U.S. services sector snapped back into growth mode in May. Investors now await the nonfarm payrolls report, due on Friday, for a comprehensive view of the labor market.
Chip stocks (.SOX), opens new tab leapt 4.2%, buoyed by Nvidia (NVDA.O), opens new tab and Taiwan Semiconductor Manufacturing , which rose 4.5% and 6.5%, respectively, both touching record highs.
Hewlett Packard Enterprise (HPE.N), opens new tab rose 12% after forecasting third-quarter revenue above Street expectations, helped by upbeat demand for its AI servers.
Dollar Tree (DLTR.O), opens new tab slipped 5.5% after a disappointing quarterly profit forecast. The budget retailer said it would explore options that include a potential sale or spinoff of Family Dollar.
Intel (INTC.O), opens new tab gained 2.4% after buyout firm Apollo Global Management (APO.N), opens new tab agreed to purchase a 49% equity interest for $11 billion in a joint venture related to the chipmaker's Ireland manufacturing unit.
CrowdStrike Holdings (CRWD.O), opens new tab jumped 10% after forecasting second-quarter revenue above estimates when markets closed on Tuesday.
Advancing issues outnumbered decliners by a 2.17-to-1 ratio on the NYSE. On the Nasdaq, 2,644 stocks rose and 1,547 fell as advancing issues outnumbered decliners by a 1.71-to-1 ratio.
The S&P 500 posted 20 new 52-week highs and 8 new lows while the Nasdaq Composite recorded 56 new highs and 102 new lows.
Reporting by Chibuike Oguh in New York; Additional reporting by Lisa Mattackal and Johann M Cherian in Bengaluru Editing by Pooja Desai and Matthew Lewis
