* Indexes: Dow down 0.01%, S&P 500 up 0.3%, Nasdaq up

0.4%

* Oil prices jump about 3% on Iran tensions

* Intel ( INTC ) climbs after Friday's rally

(Updates to afternoon trading)

By Ragini Mathur and Utkarsh Hathi

May 11 (Reuters) - The S&P 500 and the Nasdaq climbed to

intraday record highs on Monday, extending last week's rally, as

strength in chip stocks offset a jump in oil prices sparked by

stalled U.S.-Iran talks.

U.S. President Donald Trump's swift rejection of Iran's

response to a U.S. peace proposal stoked worries that the

10-week-old conflict could drag on and keep shipping through the

Strait of Hormuz paralyzed. That sent crude prices

up almost 3%.

Even so, higher oil prices have so far done little to knock

the broader market off course. The S&P 500 and the Nasdaq

both closed at record highs on Friday, supported by

upbeat corporate earnings, renewed optimism around semiconductor

stocks and a solid monthly payrolls report that pointed to

continued resilience in the U.S. economy.

That resilience could face a fresh test this week as the

earnings season winds down and investors turn to key economic

data.

Tuesday's consumer price index report is expected to show

inflation picked up in April, reflecting upward pressure on

energy prices from the Middle East conflict. Producer price data

and monthly retail sales figures are also due later in the week.

"The worry list is long, but the economy keeps proving the

bears wrong," said Robert Edwards, chief investment officer,

Edwards Asset Management

"Big tech has regained its leadership, backed by solid and

growing revenue and earnings. These names sit at the center of

every major secular theme."

At 12:15 p.m. ET, the Dow Jones Industrial Average

fell 3.66 points, or 0.01%, to 49,605.50, the S&P 500

gained 24.74 points, or 0.33%, to 7,423.67 and the Nasdaq

Composite gained 104.59 points, or 0.40%, to 26,351.67.

The S&P 500 energy and materials led

sector gains on Monday, rising 2.1% and 1.4%, respectively,

while heavyweight technology advanced 1.1%.

Nvidia ( NVDA ) and Micron Technology ( MU ) boosted the

sector, rising 3.2% and 6.3%, respectively. Qualcomm ( QCOM )

surged 9.3% to touch a record high.

Intel ( INTC ) rose 2.4% after surging 14% on Friday on a

report of a preliminary chip-making agreement with Apple ( AAPL )

.

Also on the radar is a meeting between Trump and Chinese

President Xi Jinping later this week, when the two leaders are

set to discuss Iran, Taiwan, artificial intelligence and nuclear

weapons, while also weighing an extension of a critical minerals

deal.

Major names due to report this week include tech networking

giant Cisco ( CSCO ) and semiconductor equipment maker Applied

Materials ( AMAT ), while heavyweights Nvidia ( NVDA ) and Walmart ( WMT )

are due to report later in the month.

Media major Fox Corp ( FOXA ) rose 1.7% after beating Wall

Street estimates for third-quarter revenue.

Among other moves, some airline stocks slipped as rising oil

prices threatened to squeeze margins. Southwest Airlines ( LUV )

, Delta Air Lines ( DAL ), Alaska Air ( ALK ) and United

Airlines fell between 4% and 1.6%.

Declining issues outnumbered advancers by a 1.02-to-1 ratio

on the NYSE and by a 1.11-to-1 ratio on Nasdaq.

The S&P 500 posted 34 new 52-week highs and 37 new lows

while the Nasdaq Composite recorded 131 new highs and 123 new

lows.

(Reporting by Ragini Mathur and Utkarsh Hathi in Bengaluru;

Editing by Devika Syamnath)