* Indexes: Dow down 0.39%, S&P 500 up 0.05%, Nasdaq up

0.47%

* March CPI rises 3.3%, in line with estimates

* CoreWeave ( CRWV ) gains after deal with Anthropic

* S&P 500, Nasdaq set for biggest weekly jump since May

(Updates with late morning prices)

By Purvi Agarwal and Avinash P

April 10 (Reuters) - The S&P 500 and the Nasdaq edged

higher on Friday, boosted by surging chip stocks after March

inflation data met expectations despite ongoing pressures from

the war in the Middle East, while investors monitored the uneasy

truce between the U.S. and Iran.

Tehran said a ceasefire in Lebanon was a prerequisite for

peace talks to proceed, casting doubt over the first round of

discussions with Washington, scheduled for Saturday.

Investors were cautiously optimistic a peace agreement could

be reached, despite the two-week ceasefire showing cracks as

each side accuses the other of violations.

"People are maybe positioning. They know that it's not a

done deal; they want to see it get done and then you're going to

see the market really rally," said Eric Schiffer, chairman of

The Patriarch Organization, a Los Angeles-based family office.

The two-week U.S.-Iran truce, and comments from Israeli

Prime Minister Benjamin Netanyahu that he was seeking direct

talks with Beirut, largely buoyed market sentiment this week.

The S&P 500 and the Nasdaq were on track for their biggest

weekly jumps since May, and the Dow was set for its sharpest

rise since June.

At 11:45 a.m. ET, the Dow Jones Industrial Average

fell 187.76 points, or 0.39%, to 47,998.04, the S&P 500

gained 3.60 points, or 0.05%, to 6,828.26 and the Nasdaq

Composite rose 106.45 points, or 0.47%, to 22,928.87.

The S&P 500 information technology index was the

biggest boost to the index, rising 1%, with chipmakers taking

the lead. Nvidia ( NVDA ) and Broadcom ( AVGO ) rose 2.7% and

5.7%, respectively, and the Philadelphia SE Semiconductor index

hit a record high of 8,926.95.

"One thing we know is, businesses will continue to be buying

chips at mass rates, so any AI hardware remains the main trade

today," Schiffer said.

However, weakness in financial stocks, which were

down 1.2%, capped gains on the benchmark index. Declines in

Goldman Sachs ( GS ) and Travelers dragged on the Dow.

In economic data, U.S. consumer prices increased the most in

nearly four years in March as the war boosted oil prices and

tariff effects persisted.

Traders stuck to bets that the U.S. Federal Reserve would

hold borrowing costs steady this year, according to data

compiled by LSEG, pulling back from an expectation of two rate

cuts this year before the conflict began.

San Francisco Fed President Mary Daly told Reuters on

Thursday the oil shock from the Iran war would extend the

timeline on bringing inflation back to the U.S. central bank's

2% target.

Separately, U.S. consumer sentiment plunged to a record low

in early April and consumers anticipated a surge in inflation in

the next 12 months, a survey showed on Friday.

In other movers, CoreWeave ( CRWV ) jumped 13.5% after

announcing a multi-year agreement with Anthropic and priced its

convertible bond offering at a premium.

U.S.-listed shares of Taiwan Semiconductor Manufacturing ( TSM )

, the world's largest contract chipmaker, rose

2.3% after it beat market forecasts for first-quarter revenue.

Advancing issues outnumbered decliners by a 1.06-to-1 ratio

on the NYSE and by a 1.37-to-1 ratio on the Nasdaq.

The S&P 500 posted 19 new 52-week highs and 22 new lows,

while the Nasdaq Composite recorded 94 new highs and 101 new

lows.