Updates after market open

By Ragini Mathur and Utkarsh Hathi

May 14 (Reuters) - The S&P 500 and the Nasdaq hit fresh intraday record highs on Thursday, boosted by gains in chip giant Nvidia, while investors assessed economic data and monitored developments around the high-stakes U.S.-China summit.

Nvidia NVDA.O rose 3%, giving the chipmaker a market valuation of about $5.6 trillion, after Reuters reported citing sources that the U.S. has cleared about 10 Chinese firms to buy its second-most powerful AI chip, the H200.

Meanwhile, Cisco CSCO.O soared 14.7% to an all-time high after the tech networking giant said it would cut nearly 4,000 jobs as part of a restructuring, and raised its annual revenue forecast after a surge in hyperscaler orders.

A steady rally in technology stocks in recent weeks, particularly chipmakers, has pushed U.S. stocks to new highs even though concerns remain about the Middle East conflict and higher inflation due to surging oil prices.

U.S. retail sales increased 0.5% in April, in line with estimates, but some of the rise in receipts was likely due to higher inflation as the war with Iran boosted prices of energy products and other commodities.

"Consumers aren't in a recession, but they're not powering the economy either. Higher inflation, tariffs and demographic changes have taken a toll on retail spending as a growth driver," said David Russell, Global Head of Market Strategy at TradeStation.

"Today's retail numbers don't ring any alarm bells at the Fed, so they keep an upward bias on interest rates. The consumer is strong enough to rule out rate cuts."

Additionally, the number of Americans filing claims for unemployment benefits increased moderately last week, pointing to a stable labor market.

At 09:54 a.m. ET, the Dow Jones Industrial Average .DJI rose 270.32 points, or 0.54%, to 49,963.52, the S&P 500 .SPX gained 28.32 points, or 0.38%, to 7,472.57 and the Nasdaq Composite .IXIC gained 92.85 points, or 0.35%, to 26,495.19.

Nine of the eleven main S&P 500 sectors were in positive territory, with technology .SPLRCT leading gains, rising 1%.

Chinese President Xi Jinping told President Donald Trump at the start of a two-day summit on Thursday that trade talks were making progress, but warned that tensions over Taiwan could put relations on a dangerous path and even risk conflict.

Trump's visit also comes against the backdrop of the war with Iran. A White House official said the leaders of the two largest economies had agreed that the strait should be open and that Iran should never obtain nuclear weapons.

The S&P 500 and the Nasdaq advanced on Wednesday, notching another record close in a recent run to all-time highs.

This week's stronger consumer prices and producer prices readings have reinforced expectations that the Federal Reserve will keep monetary policy restrictive for longer.

Traders are now pricing in more than a 28% chance of a quarter-point rate hike by the end of the year, up from 20.7% a week earlier, per CME Group's FedWatch Tool.

Advancing issues outnumbered decliners by a 1.7-to-1 ratio on the NYSE, and by a 1.03-to-1 ratio on the Nasdaq.

The S&P 500 posted 17 new 52-week highs and 6 new lows while the Nasdaq Composite recorded 50 new highs and 75 new lows.