(Updates to afternoon US trading)

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Oil retreats after previous week's surge

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U.S. Steel up as Trump approves $14.9 bln Nippon Steel ( NISTF ) bid

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Fed expected to keep interest rates unchanged this week

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Indexes up: Dow 0.79%, S&P 500 0.92%, Nasdaq 1.48%

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By Chuck Mikolajczak

NEW YORK, June 16 (Reuters) - U.S. stocks climbed on

Monday, as oil prices retreated after the Israel-Iran attacks

left crude production and exports unaffected, easing investor

concerns about the potential for higher energy prices to stoke

inflation.

Crude prices were down nearly 2% on hopes a truce

was on the horizon between Israel and Iran after days of missile

strikes, as Iran called on U.S. President Donald Trump to force

a ceasefire in the four-day-old aerial war, while Israel's prime

minister said his country was on the "path to victory."

Oil prices had surged more than 7% on Friday after Israel

began bombing Iran.

Tehran has asked Qatar, Saudi Arabia and Oman to press Trump to

use his influence with Israel to agree to an immediate

ceasefire, in return for Iran's flexibility in nuclear

negotiations, sources told Reuters.

"Well, it's certainly breathing a sigh of relief because if

the rumor is true that Iran is waving the white flag, they

realized that they got beaten up," said Ken Polcari, chief

market strategist at SlateStone Wealth in Jupiter, Florida.

"It could absolutely change in the next hour, which is why

the market's a little bit cautious - yes it's up, yes it's kind

of celebrating, but anything certainly could change in the next

hour."

The Dow Jones Industrial Average rose 332.62 points,

or 0.79%, to 42,530.41, the S&P 500 gained 55.16 points,

or 0.92%, to 6,032.13 and the Nasdaq Composite gained

286.81 points, or 1.48%, to 19,693.63.

Investors are also awaiting the U.S. Federal Reserve's

monetary policy decision on Wednesday, when policymakers are

widely expected to keep interest rates unchanged.

Money markets are largely not expecting the Fed to cut rates

until September, pricing in a 61.1% chance for a cut of at least

25 basis points, according to LSEG data.

Economic data expected this week includes monthly retail

sales, import prices and weekly jobless claims.

Tech led S&P sector gains while utilities were the

worst performer.

The Philadelphia SE Semiconductor index jumped about

3%, led by a surge of more than 9% in Advanced Micro Devices ( AMD )

after Piper Sandler raised its price target on the

chipmaker.

UPS and FedEx ( FDX ) edged up about 1% after the Trump

Organization launched a self-branded mobile network, dubbed

Trump Mobile, and named the companies as shipping partners.

Shares of Sarepta Therapeutics ( SRPT ) plummeted more than 40%

after the company disclosed a second case of a patient dying due

to acute liver failure after receiving its gene therapy for a

rare form of muscular dystrophy.

U.S. Steel rose 5.1% after Trump approved Nippon Steel's ( NISTF )

$14.9 billion bid for the company.

Advancing issues outnumbered decliners by a 2.29-to-1 ratio

on the NYSE and by a 2.2-to-1 ratio on the Nasdaq.

The S&P 500 posted 16 new 52-week highs and five new lows,

while the Nasdaq Composite recorded 74 new highs and 96 new

lows.