* Indexes up: Dow 0.15%, S&P 500 0.11%, Nasdaq 0.35%

* Chipmakers rebound after sell-off in previous session

* May retail sales jump 0.9% vs 0.5% est.

* Fed decision awaited later in the day

(Updates after market open)

By Sruthi Shankar and Twesha Dikshit

June 17 (Reuters) - Wall Street's major indexes inched

higher in choppy trading on Wednesday, as chip stocks rebounded

ahead of the first interest rate decision under new Federal

Reserve Chair Kevin Warsh.

Shares of richly valued chipmakers, including Broadcom ( AVGO )

, Micron Technology ( MU ), Advanced Micro Devices ( AMD )

and Intel ( INTC ), rose between 2.5% and 4%.

The S&P 500 tech index gained 1.2%, while the

Philadelphia SE Semiconductor index advanced 3.5%.

U.S. stocks have been choppy after a sharp rally on Monday

when President Donald Trump announced a preliminary U.S.-Iran

peace deal, which sent oil prices tumbling and eased inflation

fears.

Seven of 11 major S&P 500 sectors were lower, with

communication services shares leading losses after

Meta and Alphabet shed 2.2% and 1.6%,

respectively.

Software shares came under renewed pressure, with

Adobe, Salesforce ( CRM ) and Atlassian ( TEAM ) down

between 1.2% and 2.3%.

Investors' focus is now on the Fed's monetary policy

decision, set to be released at 2:00 p.m. ET.

Policymakers are widely expected to hold interest rates

unchanged at the 3.50%-3.75% range as they wrestle with

inflation pressures from higher oil prices fueled by the Middle

East war.

Investors will also keep a close watch on the new Fed

chair's first press conference for his views on inflation,

unemployment and the economic outlook.

The 10-year Treasury yield, the benchmark for global

borrowing costs, edged higher to 4.43%.

"The last thing that Warsh wants to do is send the 10-year

yield sharply higher. It's really important for markets for the

10-year yield to stay below 4.5, especially now that oil prices

are lower," said Jeff Buchbinder, chief equity strategist at LPL

Financial.

"So don't expect any fast moves along those lines. And of

course, he has to get the buy-in from the committee. So that

will be a very long, drawn-out process."

Data showed U.S. retail sales increased more than expected

in May, but a slowdown is likely as the cushion that consumers

had from larger tax refunds depletes due to rising costs.

Retail sales jumped 0.9% last month after a downwardly

revised 0.4% gain in April, the Commerce Department's Census

Bureau said. Economists' expected a rise of 0.5%.

Traders see the Fed holding rates through much of the year,

but are betting on a nearly 43% chance of a 25-basis-point rate

hike in December, according to CME Group's ( CME ) FedWatch tool.

At 09:41 a.m. ET, the Dow Jones Industrial Average

rose 77.71 points, or 0.15%, to 52,070.81, the S&P 500

gained 8.14 points, or 0.11%, to 7,519.49 and the Nasdaq

Composite gained 89.53 points, or 0.35%, to 26,466.52.

U.S. stocks have partially recovered from an early June

slump, with the blue-chip Dow touching record highs for

the past two sessions, as a resilient U.S. economy, broadening

of the rally beyond tech shares and falling oil prices aided

sentiment.

Oil prices hovered near a three-month low, fueled by hopes

that the interim peace deal between the United States and Iran

would allow oil to leave the Gulf through the crucial Strait of

Hormuz.

Still, some uncertainty lingered after Trump said the Iran

memorandum of understanding was not final, and he could resume

bombing if he did not like it.

Shares of Elon Musk's SpaceX rose 1.6% after

surpassing Amazon's ( AMZN ) market value on Tuesday to become

the fifth most valuable company.

CME Group ( CME ) slipped 5% after the exchange operator

said its CEO, Terry Duffy, will step down on March 1, and

transition to the role of executive chairman.

Advancing issues outnumbered decliners by a 1.18-to-1 ratio

on the NYSE, and by a 1.52-to-1 ratio on the Nasdaq.

The S&P 500 posted 15 new 52-week highs and 4 new lows,

while the Nasdaq Composite recorded 28 new highs and 38 new

lows.

(Reporting by Sruthi Shankar and Twesha Dikshit in Bengaluru;

Editing by Shinjini Ganguli)