* Indexes: Dow up 0.51%, S&P 500 up 0.32%, Nasdaq flat

* Apogee Therapeutics ( APGE ) jumps after AbbVie strikes $10.9 bln

deal

* SpaceX extends fall from last two sessions

* PCE data, Micron quarterly results on deck this week

(Updates after markets open)

By Twesha Dikshit and Joel Jose

June 22 (Reuters) - The S&P 500 and the Dow inched higher on

Monday, led by technology and financial shares, as investors

assessed progress in the latest round of U.S.-Iran negotiations.

U.S. and Iranian officials made "encouraging progress" at

the first round of their talks in Switzerland that ended early

on Monday, mediators said, although tension persisted over

Lebanon and the Strait of Hormuz.

Memory chipmakers moved higher, with Micron Technology ( MU )

and Sandisk ( SNDK ) gaining about 3% each.

The Philadelphia SE Semiconductor index rose 1.3% to

a fresh record high. Intel ( INTC ) and Nvidia ( NVDA ) were up

2% and 1%, respectively.

Seven out of 11 major S&P 500 sectors were in the green,

with financials leading gains with a 1% rise.

Communication services was a laggard, falling

2.3%. Alphabet and SpaceX declined 3.8% and 7.9%,

respectively, also weighing on the Nasdaq.

Oil prices fell as much as 2%,as Washington and Tehran

agreedduring the talks to a roadmap toward a final deal within

60 days.

Hopes of a peace deal helped the three key indexes end with

significant weekly gains on Thursday, with the Nasdaq

gaining 2.4% as technology shares continued to drive markets

higher.

"While markets have been resilient in recent weeks in the

hope the Middle East conflict can be resolved and we don't see a

persistent high inflationary environment, the Middle East

conflict is still a live issue and that means investors aren't

going into full-blown risk-on mood," said Dan Coatsworth, head

of markets at AJ Bell.

At 9:53 a.m. ET, the Dow Jones Industrial Average

rose 261.38 points, or 0.51%, to 51,826.08, the S&P 500

gained 23.77 points, or 0.32%, to 7,524.35 and the Nasdaq

Composite lost 1.52 points, or 0.01%, to 26,515.06.

AI-driven optimism has supported Wall Street's recent rally,

while a resilient economy and hopes for an end to the

four-month-long Middle East conflict have bolstered the broader

market.

The next test for the rally will be Micron's quarterly

results on Wednesday. Shares of the memory chipmaker have risen

almost 300% for the year.

A key focus this week will be on Thursday's personal

consumption expenditures (PCE) data, the Federal Reserve's

preferred gauge of core inflation. A hotter-than-expected

reading is likely to reinforce expectations of a hawkish Federal

Reserve after Chair Kevin Warsh underscored the need to curb

inflation at last week's meeting.

Markets currently expect a 25-basis-point rate hike from the

Fed in September, according to LSEG data. Yields on 2-year

notes, which reflect near-term rate expectations, hit their

highest level since early 2025 at 4.230% earlier in the day.

Comments from central bank speakers this week, including New

York President John Williams and Chicago President Austan

Goolsbee, will also be closely watched for policy signals.

Among other movers, Apogee Therapeutics ( APGE ) jumped

nearly 47% after AbbVie said it would acquire the

biotech for $10.9 billion in cash. AbbVie was up 4.7%.

Advancing issues outnumbered decliners by a 1.2-to-1 ratio

on the NYSE and by a 1.49-to-1 ratio on the Nasdaq.

The S&P 500 posted 19 new 52-week highs and 19 new lows,

while the Nasdaq Composite recorded 103 new highs and 74 new

lows.