The number of Americans filing new claims for unemployment benefits increased last week and another report showed producer prices unexpectedly fell in May, helping to keep alive hopes that an interest rate cut by the Federal Reserve may be on the horizon.

The Fed on Wednesday projected only one rate cut this year, while its outlook in March included three quarter-percentage-point reductions.

The S&P 500 technology sector jumped 1.4% and an index of semiconductors rose 1.5%, both reaching all-time closing highs.

Shares of Broadcom (NASDAQ:AVGO) jumped 12.3% after the chipmaker raised its forecast for revenue from semiconductors used in artificial intelligence technology. It also announced a 10-for-1 forward stock split.

Shares of Nvidia (NASDAQ:NVDA) rallied 3.5%, and Apple (NASDAQ:AAPL) ended up 0.5%.

"It's still very much a tech story" in stocks, said Paul Nolte, senior wealth advisor and market strategist for Murphy & Sylvest in Elmhurst, Illinois. "When you look at the broader market, you're not seeing the participation you would like to see from a healthier market."

The Dow Jones Industrial Average fell 65.11 points, or 0.17%, to 38,647.1, the S&P 500 gained 12.71 points, or 0.23%, at 5,433.74 and the Nasdaq Composite rose 59.12 points, or 0.34%, to 17,667.56.

After the closing bell, shares of Adobe (NASDAQ:ADBE) jumped more than 14% after the Photoshop maker beat Wall Street expectations for second-quarter revenue. The stock ended the regular session down 0.2%.