(For a Reuters live blog on U.S., UK and European stock

markets, click or type LIVE/ in a news window)

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Indexes: Dow down 0.52%, S&P 500 flat, Nasdaq up 0.46%

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Apple ( AAPL ) rises as $100 bln manufacturing pledge eases tariff

fears

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Eli Lilly ( LLY ) falls after late-stage data for oral weight-loss

drug

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Weekly jobless claims rise to highest level in a month

(Updates with analyst comment, early afternoon prices)

By Nikhil Sharma and Pranav Kashyap

Aug 7 (Reuters) -

Wall street's main indexes trimmed their early gains on

Thursday amid concerns over the Federal Reserve's independence,

following a report that Fed Governor Christopher Waller was

President Donald Trump's top candidate for the central bank's

chair post.

The Bloomberg News

report

comes in the wake of Trump's repeated criticism of current

Chair Jerome Powell for not cutting borrowing costs that has

raised uncertainty over the Fed's independence. Powell's tenure

is set to end in May.

"There's a lot of uncertainty as to who's going to drive

the Fed. Not just because we have to now redraw who this new

person is, it's whether or not they'll be able to navigate us

through this (the current scenario)," said David Lundgren,

portfolio manager, chief market strategist at Little Harbor

Advisors.

Trump is also anticipated to announce his interim

replacement for Fed Governor Adriana Kugler in the coming days

amid expectations that the nominee would be a policy dove who

will likely favor bringing interest rates lower.

At 10:59 a.m. ET, the Dow Jones Industrial Average

fell 230.10 points, or 0.52%, to 43,963.02, the S&P 500

gained 0.26 points, or 0.00%, to 6,345.62 and the Nasdaq

Composite gained 97.56 points, or 0.46%, to 21,266.98.

On the day, the tech-heavy Nasdaq remained a standout,

holding onto gains as hopes that major technology giants could

avoid Trump's latest tariffs on chip imports.

Apple's ( AAPL ) shares climbed 2.2%, adding to a 5.1% climb

on Wall Street in the prior session, after Trump said the iPhone

maker will invest an additional $100 billion in the U.S.,

bringing its total commitment to $600 billion over the next four

years.

Trump also announced a tariff of about 100% on imports of

semiconductors, but said it would not apply to companies that

are manufacturing in the U.S. or have committed to do so.

Shares of chipmakers Nvidia ( NVDA ) and Broadcom ( AVGO )

rose 2.3% each, while peer Advanced Micro Devices ( AMD )

advanced 5.3%.

The above stocks boosted tech by 1.1%, leading

the sectoral gains, while the healthcare index fell to

the bottom with a 1.6% fall.

Drugmaker Eli Lilly dropped 14.4% and was set

for its worst day in a quarter-century after

reporting

data on its late-stage oral weight-loss drug. The drugmaker

also

raised

its full-year profit forecast.

Trump's higher tariffs of 10% to 50% on dozens of

trading partners took effect on Thursday.

Fresh signs of a faltering labor market - especially

after a disappointing July payrolls report - have fueled

speculation that the Fed could soon kick off a rate-cutting

cycle.

New data showed

jobless claims came

in at 226,000 for the week of Aug. 2, surpassing

economists' expectations of 221,000.

Traders are now betting almost fully on a September rate

cut, with at least two moves expected this year, CME Group's

FedWatch tool showed.

Meanwhile, chipmaker Intel ( INTC ) lost 0.7% after

Trump called for its

chief executive's resignation

, saying, "the Intel ( INTC ) CEO is highly conflicted and should

resign immediately."

Second-quarter earnings barrage continued at full throttle.

DoorDash ( DASH ) topped revenue estimates and forecast a

stronger-than-expected gross merchandise value for the current

quarter. Its shares jumped 2.9%.

Advancing issues outnumbered decliners by a 1.21-to-1

ratio on the NYSE, while declining issues outnumbered advancers

by a 1.19-to-1 ratio on the Nasdaq.

The S&P 500 posted 20 new 52-week highs and five new

lows, while the Nasdaq Composite recorded 67 new highs and 67

new lows.