* Indexes up: Dow 0.36%, S&P 500 0.91%, Nasdaq 1.25%

* Intel ( INTC ) up after Trump says co to partner with Apple ( AAPL ) on chip

design

* Accenture ( ACN ) tumbles on trimming top-end of its FY revenue

forecast

* Data showed weekly jobless claims fell amid low layoffs

(Updates to late morning prices)

By Twesha Dikshit and Joel Jose

June 18 (Reuters) - U.S. stocks rebounded on Thursday with

semiconductor shares leading gains as optimism about a Middle

East peace deal offset worries about a hawkish Federal Reserve

under new Chair Kevin Warsh.

Intel's ( INTC ) shares jumped nearly 8% to hit a record

high after U.S. President Donald Trump said Apple ( AAPL ) had

agreed to work with the company to design and manufacture its

chips in the United States.

Other chip stocks also moved higher. Nvidia ( NVDA ) rose

2.3%, while Micron and Marvell Technology ( MRVL ) added

over 8.4% and 12%, respectively.

The Philadelphia SE Semiconductor index hit a record

high and was last up 6.3%, while the S&P 500 tech index

rose 2.5%

All three major indexes sank in the previous session as

investors priced in the likelihood of more Federal Reserve rate

hikes, after Warsh underscored the need to curb inflation and

other policymakers signaled higher borrowing costs ahead.

Meanwhile, the United States and Iran released the text of a

signed interim agreement that extends the April ceasefire by

another 60 days to allow the two sides to reach a final deal.

Oil prices slid almost 3% to their lowest since the first

trading day of the Iran war, keeping alive hopes that inflation

could be tamed without hiking interest rates.

"The signing of the initial agreement between the U.S. and

Iran has provided some additional confidence," said Jim Baird,

Chief Investment Officer at Plante Moran Financial Advisors.

Oil prices being down "should provide some near-term relief,

both in terms of inflation and might provide a little bit more

cover for the Fed to continue to evaluate the current state of

policy and at least push back the margins against the narrative

that they will need to hike before the end of the year."

Markets are currently pricing in a 50% chance of a

25-basis-point rate hike in September, according to CME Group's

FedWatch tool, higher than 27% priced in on Wednesday.

Seven out of 11 major S&P 500 sectors moved higher with

utilities and industrials gaining almost

1.3% each.

The small-cap Russell 2000 index rose 1.5%.

Shares of Accenture ( ACN ) tumbled almost 16.6% after the

company trimmed the top end of its annual revenue forecast.

Peers Cognizant Technology Solutions ( CTSH ) and IBM ( IBM )

dropped 9.1% and 5.7%, respectively.

The S&P 500 software sector was dragged to a more

than two-month low, shedding 1.5%.

At 11:23 a.m. ET, the Dow Jones Industrial Average

rose 184.68 points, or 0.36%, to 51,677.23, the S&P 500

gained 67.24 points, or 0.91%, to 7,487.34 and the Nasdaq

Composite gained 324.76 points, or 1.25%, to 26,344.72.

Markets have regained ground from a slump in early June,

with a resilient economy, a broadening rally beyond tech shares

and optimism surrounding a U.S.-Iran deal boosting sentiment.

All three indexes were on track to end higher for a second

consecutive week before Friday's Juneteenth holiday.

On the data front, Labor Department data showed the number

of Americans filing claims for unemployment benefits fell last

week as layoffs remained low.

Thursday also marks the once-in-a-quarter simultaneous

expiry of derivatives contracts tied to stocks, index options

and futures, also known as "triple witching", which can boost

trading volume and aggravate volatility.

Among other movers, Kroger ( KR ) dropped 6% after the

grocer reported a lower-than-expected profit for the first

quarter and kept its annual forecasts unchanged.

Advancing issues outnumbered decliners by a 1.77-to-1 ratio

on the NYSE and by a 1.57-to-1 ratio on the Nasdaq.

The S&P 500 posted 27 new 52-week highs and 24 new lows

while the Nasdaq Composite recorded 90 new highs and 103 new

lows.

(Reporting by Twesha Dikshit and Joel Jose; Editing by Pooja

Desai and Devika Syamnath)