* Indexes down: Dow 1.5%, S&P 500 0.9%, Nasdaq 0.9%

* Fed's June meeting minutes due at 1400 ET

* Broadcom ( AVGO ) rises after Apple ( AAPL ) says it will spend $30 bln in

chips deal

(Updates with afternoon levels)

By Ragini Mathur and Avinash P

July 8 (Reuters) - Wall Street's main indexes fell on

Wednesday after President Donald Trump said an interim deal

aimed at ending the war with Iran was "over," while Broadcom ( AVGO ) led

gains among recently battered chip stocks.

Speaking at the NATO summit, Trump said he had no interest

in further talks with Iran and warned that Washington was likely

to carry out additional strikes on Wednesday night.

His comments marked the latest setback in the series of

back-and-forth in negotiation talks that have swung between

threats of escalation and hopes for diplomacy, leaving investors

wrong-footed by several false starts toward a peace deal.

Broadcom ( AVGO ) gained 4.2% after Apple ( AAPL ) said it

plans to spend more than $30 billion as part of a chip-supply

agreement reached earlier this week with the chipmaker.

"Any time you get an announcement from Apple ( AAPL ) about using

your equipment, it's pretty positive - especially when you have

2.5 billion Apple ( AAPL ) devices in people's hands around the globe,"

said Art Hogan, chief market strategist at B. Riley Wealth.

Nvidia ( NVDA ) pared early losses and turned positive after

the Information reported that China plans to allow its top AI

firms to buy a limited number of the company's H200 chips.

The chip stocks were mixed on Wednesday after recent

volatility, with the broader Philadelphia SE Semiconductor index

down 0.08%.

At 12:04 p.m. ET, the Dow Jones Industrial Average

fell 774.50 points, or 1.46%, to 52,150.65, the S&P 500

lost 66.94 points, or 0.89%, to 7,437.21 and the Nasdaq

Composite lost 235.63 points, or 0.91%, to 25,584.18.

Oil prices sharply extended gains on the day following

Trump's remarks, with Brent crude futures surging 7%.

Treasury yields also rose as the selloff spread to bonds.

The latest escalation in the conflict threatens to unsettle

the equities rally that has carried the benchmark S&P 500 up

about 9% so far this year, despite sharp declines earlier in

2026 after the Mideast war started.

A renewed jump in oil prices could revive inflation concerns

and further complicate the Federal Reserve's path.

Nine of the 11 sectors on the S&P 500 were trading in

the red, except for energy and consumer staples

.

Energy price-sensitive travel stocks fell as higher oil

prices stoked concerns over fuel costs and demand. United

Airlines dropped 4.4% and Delta Air Lines ( DAL ) fell

3.4%.

Cruise operators also slipped, with Carnival down

5.1%, and Norwegian Cruise Line ( NCLH ) 4%.

Small-cap Russell 2000 index fell 1.6% to three-week

lows. The CBOE Volatility Index, Wall Street's fear

gauge, hit an over one-week high. It was last up 2.4 points at

18.54.

FED MINUTES, IMF WARNING IN FOCUS

Meanwhile, the International Monetary Fund on Wednesday once

again lowered its 2026 global growth forecast to 3%, warning of

ongoing risks posed by the war in the Middle East.

The Fed's June policy meeting minutes are due later in the

session. The readout could offer better clues on how

policymakers are assessing inflation risks and economic growth.

"In the past... you tended to have less of a market-moving

event with the minutes. I think this may be different," said

Hogan.

Traders are currently pricing in at least one rate hike by

the end of 2026, according to LSEG data.

Declining issues outnumbered advancers by a 3.6-to-1 ratio

on the NYSE, and by a 3.56-to-1 ratio on the Nasdaq.

The S&P 500 and the Nasdaq Composite posted no new 52-week

highs and no new lows.