* Indexes mixed: Dow down 0.27%, S&P 500 flat, Nasdaq up

0.18%

* Nvidia ( NVDA ) gains on unveiling new chip to bring AI to

laptops

* Micron shares top $1,000 for the first time

* Jobs report, Broadcom ( AVGO ) results on deck this week

(Updates to late morning trading)

By Medha Singh and Twesha Dikshit

June 1 (Reuters) - Wall Street's main indexes stayed

near record levels on Monday after oil prices spiked on mounting

skepticism that a deal to end the three-month-old U.S.-Iran war

could be reached soon, while Nvidia's ( NVDA ) latest AI push kept losses

in check.

Heavyweight Nvidia ( NVDA ) rose 3.9% after unveiling a new

chip that puts AI capabilities directly into laptops and desktop

computers following a three-year partnership with Microsoft ( MSFT )

. Microsoft ( MSFT ) shares added 2.5% and PC makers Dell

and HP jumped 9% and 7.3%, respectively.

The reaction in semiconductor stocks was mixed. Qualcomm ( QCOM )

tumbled 6.7%, while PC chipmakers AMD and Intel

fell 2.6% and 0.1%, respectively. Micron gained 5.7% to

$1,022, topping the $1,000 mark for the first time and extending

its scorching rally.

"There's real money coming into these companies, so it's an

interesting place to be. But that all said, all it takes is one

negative headline to kind of push us back in the wrong

direction," said Ryan Lee, Direxion's senior vice president of

product and strategy.

The broader mood was somber, with oil prices climbing 5%

after Tasnim news agency reported that Tehran was halting

indirect negotiations with the U.S. over attacks on Lebanon.

"The reality of this conflict is the longer it goes on, the

higher oil prices will likely get driven up and... you will feel

those ripple effects across every corner of the market," Lee

said.

Wall Street's main indexes ended May at record highs, buoyed

by hopes of an eventual end to the war and blowout first-quarter

earnings. Optimism around AI has also helped boost U.S.

equities, but concerns over the economic impact from the

hostilities persist.

Investors will turn to Friday's jobs report ahead of Kevin

Warsh's debut policy meeting as chairman of the U.S. Federal

Reserve this month, amid fears of rising inflation linked to the

Iran war that could upend the stock market rally.

Traders have priced in a near 70% chance of a quarter-point

rate hike before the end of the year.

At 11:22 a.m. ET, the Dow Jones Industrial Average

fell 136.66 points, or 0.27%, to 50,897.15, the S&P 500

was unchanged, or 0.00%, to 7,580.05, and the Nasdaq Composite

rose 47.54 points, or 0.18%, to 27,020.16.

Nine of the 11 main S&P 500 sectors were in the red, with

only tech and energy in positive territory.

Software stocks rebounded from the heavy selling earlier

this year on AI disruption fears. ServiceNow ( NOW ) and IBM ( IBM )

rose 10.7% and 6%, respectively. The software services

index advanced 3.9% after erasing all losses from

January-end.

Cadence Design Systems ( CDNS ) added 6.2% after launching

an Nvidia ( NVDA )-powered AI agent for chip design.

Broadcom's ( AVGO ) earnings on Wednesday will also be in

focus following a strong results forecast last week from Dell

signaling strong AI server demand.

Among other company movers, Taylor Morrison Home Corp ( TMHC )

jumped 22% after Berkshire Hathaway ( BRK/A ) agreed to

buy the homebuilder for $6.8 billion in cash.

Declining issues outnumbered advancers by a 1.6-to-1 ratio

on the NYSE and by a 1.35-to-1 ratio on the Nasdaq.

The S&P 500 posted 22 new 52-week highs and 16 new lows,

while the Nasdaq Composite recorded 79 new highs and 61 new

lows.