S&P 500 notches record high as Nvidia rally continues

The benchmark S&P 500 has touched a record high, boosted by strong gains in Nvidia, while investors assessed recent US economic data and commentary from Federal Reserve officials to gauge the timing for interest rate cuts this year.

Nvidia shares gained 3.1 per cent to an all-time high, and were set to extend the semiconductor bellwether's lead as the world's most valuable company, after Dell and Super Micro Computer received server orders for Elon Musk's AI startup.

Dell and Super Micro's shares rose 5.5 per cent and 9.2 per cent, respectively.

Nvidia dethroned Microsoft on Tuesday to become the world's most valuable company.

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The continued surge by the AI chip leader and softer-than-expected US retail sales data pushed the S&P 500 and the Nasdaq to close at record highs in the previous session.

Chip stocks Marvell Technology and Advanced Micro Devices also climbed 2.3 per cent and 4.5 per cent, respectively, on Thursday.

The S&P 500 Technology index notched a record high, emerging as one of the top sector gainers, also boosted by a 5.7 per cent jump in Accenture after the IT services provider projected annual revenue growth above estimates.

The number of Americans filing new claims for unemployment benefits fell last week, but overall strength in the jobs market persisted despite a gradual cooling.

Another set of data showed US single-family homebuilding fell in May amid continued high mortgage rates.

"Weekly jobless claims came pretty much in line, still indicating a relatively good jobs market, housing was a little bit light, but that number's been all over the place," said Paul Nolte, senior wealth adviser and market strategist for Murphy & Sylvest.

"And generally speaking, housing has been good. I don't think this changes the housing outlook at all, and that's part of the reason why you're not getting much of a reaction in the financial markets."

Minneapolis Fed President Neel Kashkari said it will take a year or two to get inflation back to 2.0 per cent as wage growth might still be a bit too high, spurring worries of rates staying elevated for longer.

Money markets currently see a 58 per cent chance of a 25-basis point rate cut by the US central bank in September, according to LSEG's FedWatch data.

In early trading on Thursday, the Dow Jones Industrial Average was up 109.08 points, or 0.28 per cent, at 38,943.94, the S&P 500 was up 29.81 points, or 0.54 per cent, at 5,503.04, and the Nasdaq Composite was up 52.21 points, or 0.29 per cent, at 17,914.44.

Hewlett Packard Enterprise was up 2.2 per cent. Britain's competition regulator said it was investigating whether the company's planned $US14 billion ($A21 billion) acquisition of Juniper Networks would result in competition concerns.

Trump Media & Technology Group tumbled 14.1 per cent on potential equity dilution after the US Securities and Exchange Commission declared effective the company's filing for resale of certain shares and warrants, giving it about $US247 million in proceeds.

Advancing issues outnumbered decliners for a 1.18-to-1 ratio on the NYSE and a 1.00-to-1 ratio on the Nasdaq.

The S&P index recorded 19 new 52-week highs and four new lows, while the Nasdaq recorded 27 new highs and 118 new lows.