*

Recent tensions in Los Angeles over immigration raids have

set

the stage for further potential unrest

*

Protests planned in response to Trump administration

policies

*

A military parade in Washington, coincides with Trump's

79th

birthday

*

The S&P 500, near recent record highs; investors wary

By Saqib Iqbal Ahmed

NEW YORK, June 13 (Reuters) -

Investors will keep close watch on planned protests across

U.S. cities on Saturday, amid heightened concerns following

immigration raids in

Los Angeles

and developments in the Middle East.

The protests, organized by the "No Kings" coalition to

oppose President Donald Trump's policies, are set to coincide on

Saturday with a military parade in Washington marking the U.S.

Army's 250th anniversary and Trump's 79th birthday. Trump on

Tuesday warned against protests at the parade.

The protests also come on the heels of heightened

geopolitical concerns after Israel's military strikes on Iran

and have sparked a rush into safe havens such as gold and the

dollar.

"The protests and the ongoing developments in Iran bear

further watching," said Jack Ablin, chief investment officer at

Cresset Capital.

The protests could negatively impact the markets from a

psychological standpoint, said Tim Ghriskey, senior portfolio

strategist at Ingalls & Snyder in New York.

"These protests have been relatively peaceful but have the

potential to spiral out of control and result in injuries, etc,"

he said.

Any damage to sentiment and the willingness to take risks

could add to the challenge the S&P 500 faces in the near term as

the index appears to have stalled after making big advances from

its early April trade war-induced market swoon. The S&P 500 is

about 20% above its April low, but is little changed over the

last four weeks.

The benchmark stock index is about 2% shy of its record

closing high reached in mid-February. The index was down about

1% on Friday afternoon.

Trump's decision last weekend to dispatch troops to Los

Angeles over the objections of California Governor Gavin Newsom

has sparked a national debate about the use of the military on

U.S. soil and further polarized the country.

Americans are divided over Trump's decision to activate the

military to respond to protests against his crackdown on

migrants, with about half supportive of the move, according to a

Reuters/Ipsos poll on Thursday.

For now, much of the market's attention remains fixated on

events unfolding in the Middle East.

"I don't think there's a direct impact to the markets. It

may come more on the confidence side, adversely impacting

sentiment," Jack Janasiewicz, portfolio manager at Natixis

Investment Managers Solutions, in Boston, said.