(Updates with close of market)

* Micron Technology ( MU ) drops as higher spending plans draw

scrutiny

* Volatile oil prices keep investor on edge

* Tesla and Nvidia ( NVDA ) lose ground

By Noel Randewich and Utkarsh Hathi

March 19 (Reuters) - Wall Street ended lower on

Thursday, with declines in Micron Technology ( MU ) and Tesla, as

worries about inflation stemming from soaring oil prices left

investors pessimistic about the potential for future interest

rate cuts.

Investors focused on warnings by Federal Reserve Chair Jerome

Powell on Wednesday that the economic outlook remains uncertain

amid a U.S.-Israeli war with Iran that has sent energy prices

soaring and created fears of inflation. The Fed left rates

unchanged, as expected.

Interest rate futures suggest traders see little chance of

interest rate cuts before mid-2027, according to the CME's

FedWatch tool.

Echoing the Fed, the Bank of England and European Central Bank

held their interest rates steady and pointed to uncertainty

arising from the Middle East conflict.

'A REAL INFLATION RISK'

"The market is digesting a little bit more of Powell and

what some other central banks said overnight, that this is a

real inflation risk," said Mike Dickson, head of research and

quantitative strategies at Horizon Investments in Charlotte,

North Carolina.

Attacks on Iran's South Pars gas field, along with the world's

largest gas plant in Qatar as well as on oil refineries in Saudi

Arabia and Kuwait, sent Brent prices above $119 a barrel

and further fanned inflation fears.

Brent prices later retreated after the United States issued a

general license allowing the delivery and sale of Russian-origin

crude oil and petroleum products loaded on tankers as of March

12.

Micron Technology ( MU ) dropped after the memory chipmaker's

quarterly forecast failed to impress investors who have sent its

shares soaring over 50% this year on strong demand related to

AI. Nvidia ( NVDA ), the world's most valuable company, also

lost ground.

Tesla slid after the National Highway Traffic Safety

Administration escalated its probe into 3.2 million Tesla

vehicles with Full Self-Driving driver-assistance on concerns

the system may fail to detect or warn drivers in poor

visibility.

According to preliminary data, the S&P 500 lost 18.50

points, or 0.28%, to end at 6,606.20 points, while the Nasdaq

Composite lost 62.20 points, or 0.28%, to 22,090.22. The

Dow Jones Industrial Average fell 206.95 points, or

0.45%, to 46,018.20.

The S&P 500, Nasdaq and Dow were below their 200-day moving

averages, underscoring a loss of momentum in the market.

The S&P 500 has lost about 3% in 2026 and is trading at

four-month lows.

Prices of precious metals declined, weighing on miners Newmont ( NEM )

and Freeport-McMoRan ( FCX ).

Data on Thursday showed weekly jobless claims unexpectedly fell

last week, pointing to stable labor-market conditions and a

rebound in job growth in March.