NEW YORK (Reuters) - Technology stocks lifted Wall Street on Thursday, as some bullish brokerage calls on computer chip stocks helped propel the tech-heavy Nasdaq to its longest streak of gains in more than 3-1/2 years.

The Nasdaq Composite Index has risen in seven straight sessions for the first time since Feb. 8, 2000, according to MarketHistory.com. The broader Standard & Poor's 500 index has notched gains eight sessions in a row for the first time since March 21, 2003.

The Nasdaq hit a fresh 17-month closing high for the third session in a row, while the blue-chip Dow Jones industrial average and the S&P 500 edged slightly above the 14-month highs hit the day before.

The Dow Jones industrial average rose 19.44 points, or 0.2 percent, to 9,587.90. The S&P 500 was up 1.7 points, or 0.17 percent, at 1,027.97. The Nasdaq Composite Index gained 16.08 points, or 0.87 percent, to 1,868.98.

The Dow had its fifth successive up session, inching above break-even as some mixed economic news kept a lid on gains outside the tech sector.

JOBLESS CLAIMS RISE

Early on Thursday, the U.S. government said new jobless claims rose unexpectedly last week. But productivity of U.S. businesses, orders for American goods and growth in the services sector all came in ahead of economists' forecasts.

Brokerage UBS put a "buy" recommendation on semiconductor stock Applied Materials Inc. and others early on Thursday, citing growing momentum for orders of equipment for building microchips.

"You're seeing mainly gains in the technology sector and more specifically in the semiconductor and hardware space," said Keith Keenan, vice president of institutional trading at Wall Street Access. "I think it's mainly (because) the prior two sessions, the semiconductors were weak while the broader market was strong so I think the upgrade from UBS was well timed in terms of buying some of the short-term weakness."

Goldman Sachs raised its rating on tech bellwether Cisco Systems Inc., continuing Wall Street's recent bullish mood on technology stocks. Cisco shares rose 35 cents, or 1.7 percent, to $20.59.

Applied Materials got a boost from the UBS "buy" rating, gaining 26 cents, or 1.2 percent, to $21.22.

INTEL BOOST AFTER BELL

After the close of regular trading on Thursday, Intel Corp., the world's largest maker of semiconductors, said it now expects third-quarter revenue to come in even with or above analyst expectations.

Intel narrowed its revenue forecast for the third quarter to between $7.6 billion to $7.8 billion, the high end of its latest forecast. Shares of Intel rose to $29.02 on the Instinet electronic brokerage system from their regular session close of $28.60 on the Nasdaq.

Network Associates Inc., a security software maker, was boosted by strong demand after several recent widespread attacks on computers. Brokerage Merrill Lynch upgraded its rating on the stock to "buy" from "sell." It was up 99 cents, or 6.8 percent, to $15.50.

McDonald's Corp. rose after it said U.S. sales continued to show strength in August and sales in Europe improved slightly. It also said a federal judge in New York threw out a refiled lawsuit that sought to blame the fast-food chain for obesity and health problems in children.

McDonald's shares gained 70 cents, or 3.1 percent, to $23.39.

But clothing retailer Gap Inc. shares dropped after it reported August sales growth that was short of expectations. Gap fell $2.82, or 13.4 percent, to $18.18.

UP FROM YEAR LOWS

The Nasdaq on Thursday closed at its highest level since March 19, 2002, and the S&P 500 hit its highest close since June 18, 2002. The Dow hit its highest close since June 19, 2002.

All three indexes are up strongly since lows hit for the year on March 11. The Dow has rallied about 27.4 percent, the S&P 500 28.4 percent, and the Nasdaq a heady 47 percent.

Volume was active with about 1.46 billion shares changing hands on the New York Stock Exchange and 1.89 billion traded on the Nasdaq. Advancers outnumbered decliners by about 9 to 7 on both the NYSE and the Nasdaq.