* Indexes up: Dow 0.29%, S&P 500 0.68%, Nasdaq 1.09%

* Marvell Technology ( MRVL ) set to join S&P 500, shares jump

* Tech shares lead gains following Friday's sell-off

* Citi expects S&P 500 to cross 8,000-mark by year-end

(Updates after market open)

By Sruthi Shankar and Twesha Dikshit

June 8 (Reuters) - Wall Street's major indexes advanced on

Monday, as chipmakers bounced back from a sharp selloff last

week, while investors took comfort from signs of cooling

tensions in the Middle East.

Intel ( INTC ) shares jumped 8.5%. The Information reported

that Alphabet had tapped the company to make 3 million

in-house chips, while Nvidia ( NVDA ) was evaluating their technology.

The S&P 500 tech sector index gained 1.9%, while

the Philadelphia SE Semiconductor index advanced 4.6%,

rebounding from Friday's sharp decline that wiped out $1

trillion in market value for U.S.-listed chipmakers.

Shares of Nvidia ( NVDA ) and Broadcom ( AVGO ) rose 1.7%

and 2.8%, respectively, while Micron Technology ( MU ) soared

8.7%.

Expectations of tighter monetary policy and underwhelming

results from Broadcom ( AVGO ) last week had raised concerns that the

sector was growing too fast, prompting traders to retreat after

a strong run this year.

"Sometimes these moves get too far too fast and you need a

bit of a pullback. And, that pullback is likely going to find

investment in other sectors," said Art Hogan, chief market

strategist at B Riley Wealth.

Four out of the 11 major S&P 500 indexes were in the green.

Further helping the mood, Iran's military announced that its

first wave of attacks on Israel since a ceasefire in April was

now over. Israel has halted strikes on Iran at the request of

U.S. President Donald Trump, a senior Israeli official was cited

as saying by Channel 12.

Attacks between the two countries had pushed up oil prices

by more than 5% earlier on Monday. Crude prices

were last up less than 2%. Energy shares rose 1.3%.

At 09:37 a.m. ET, the Dow Jones Industrial Average

rose 146.11 points, or 0.29%, to 51,015.91, the S&P 500

gained 50.54 points, or 0.68%, to 7,434.28 and the Nasdaq

Composite gained 280.09 points, or 1.09%, to 25,989.52.

Much stronger-than-expected jobs data for May also

contributed to Friday's rout, as traders priced in interest rate

increases this year. Pricing in interest rate futures implies a

42% chance that the Federal Reserve will hike rates by 25 basis

points in December, per CME Group's Fedwatch tool.

Wednesday's consumer prices report for May could offer

investors fresh insights on how the rise in energy prices due to

the Iran war is impacting inflation.

Citigroup was the latest brokerage to raise its 2026-end

target for the S&P 500 to cross the 8,000 mark, citing

corporate earnings resilience and AI-driven growth.

Relentless optimism around AI has aided Wall Street's recent

record run, but lingering concerns over the economic impact of

the Iran war have clouded investor sentiment.

Among other movers, Marvell Technology ( MRVL ) jumped

almost 10% with the chipmaker set to join the benchmark S&P 500

before the start of trading on June 22. Flex was

marginally up after the electronics manufacturer also secured a

spot.

Eli Lilly ( LLY ) advanced 2.3% after the drugmaker's trial

results showed its next-generation obesity drug retatrutide

curbed sleep apnea severity in addition to boosting weight loss

and helping knee pain.

Advancing issues outnumbered decliners by a 1.76-to-1 ratio

on the NYSE and by a 1.97-to-1 ratio on the Nasdaq.

The S&P 500 posted 5 new 52-week highs and 4 new lows while

the Nasdaq Composite recorded 47 new highs and 57 new lows.

(Reporting by Sruthi Shankar and Twesha Dikshit in Bengaluru;

Editing by Devika Syamnath)