Updates at 11 am ET

By Isla Binnie

NEW YORK, July 18 (Reuters) -Wall Street was slightly lower on Thursday in choppy trading after mostly giving up early gains driven by strong demand from the world's largest chipmaker, while European shares rose after the ECB left rates unchanged.

Japan's yen wilted after scaling a six-week high, while the euro eased a fraction after ECB President Christine Lagarde held off any rate change but said an interest rate decision at the ECB's next meeting in September was "wide open".

The Dow Jones Industrial Average .DJI was down 84.79 points, or 0.21%, at 41,112.74, the S&P 500 .SPX lost 22.22 points, or 0.39%, to 5,566.32.

The Nasdaq Composite .IXIC fell 139.86 points, or 0.78%, to 17,856.63, giving back early gains after initially recovering from Wednesday's session, which was its worst since December 2022 .N The STOXX 600 .STOXX index rose 0.01%.

U.S.-listed shares of TSMC TSM.N dipped after previously jumping 2.1% thanks to a raise in the Taiwan chipmaker's full-year revenue forecast on surging demand for AI chips. A semiconductor index .SOX was up.

MSCI's gauge of stocks across the globe .MIWD00000PUS fell 3.77 points, or 0.46%, to 819.82.

Tech company earnings will be next on investors' radars as the U.S. second-quarter earnings season picks up steam.

"Risks in the technology sector got pointed out yesterday, with continuing trade issues between the U.S. and China," said Paul Nolte, senior wealth adviser and market strategist for Murphy & Sylvest.

DATA BOOSTS DOLLAR

In the foreign exchange market, the dollar index advanced after strong U.S. manufacturing data and jobless data that did little to suggest a significant slowing in the labor market. The euro was weaker after the ECB policy statement.

The dollar index =USD gained 0.29% to 103.97, after hovering close to its weakest level in four months. The euro EUR= was down 0.26% at $1.0909. It had touched a four-month low of 103.64 on Wednesday.

Initial claims for U.S. state unemployment benefits increased 20,000 to a seasonally adjusted 243,000 for the week ended July 13, the Labor Department said on Thursday. Economists polled by Reuters had forecast 230,000 claims for the latest week, although the data was not considered to be a notable shift in the labor market due to seasonal factors.

Interest rate sensitive two-year yields US2YT=RR were last up 1.5 basis points on the day at 4.444%, but were down from around 4.455% before the weaker-than expected labor data.

The yield on benchmark U.S. 10-year notes US10YT=RR rose 2.1 basis points to 4.167%, from 4.146% late on Wednesday.

The yen came off its highs after daily data showed little fresh evidence of intervention from authorities. It weakened 0.28% against the dollar at 156.59 per dollar.

The yen has dropped 9.5% against the dollar this year as the wide interest rate difference between the U.S. and Japan weigh, creating a lucrative trading opportunity, in which traders borrow the yen at low rates to invest in dollar-priced assets for a higher return, known as carry trade.

In commodities, gold XAU= was higher, adding 0.25% to $2,464.50 an ounce, although below the record high of $2,483.60 it touched on Wednesday. GOL/

U.S. crude CLc1 was down 0.53% at $82.41 a barrel and Brent LCOc1 fell to $84.59 per barrel, down 0.58% on the day.

Additional reporting by Karen Valetkevitch; Editing by Arun Koyyur and Susan Fenton

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