* Indexes: Dow up 0.44%, S&P 500 up 0.05%, Nasdaq down 0.03%

* 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 to late morning prices)

By Sruthi Shankar and Twesha Dikshit

June 17 (Reuters) - U.S. stock indexes wavered in choppy

trading on Wednesday, as investors awaited the first interest

rate decision under new Federal Reserve Chair Kevin Warsh.

The indexes have stalled after a sharp rally on Monday when

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

deal that sent oil prices tumbling and eased inflation fears.

Shares of highly valued chipmakers rebounded from Tuesday's

drop. Broadcom ( AVGO ) rose 5.7% and Micron Technology ( MU )

gained 3.7%.

Elon Musk's SpaceX fell 3% and was set to end lower

for the first time since last week's blockbuster market debut,

which pushed the company's market valuation above $2 trillion.

Other heavyweights, including Amazon and Alphabet

, also lost steam.

Banks were a bright spot. Shares of Bank of America ( BAC ),

Citigroup ( C ) and Goldman Sachs ( GS ) touched record highs in

late morning trading.

Traders are keenly waiting for the Federal Reserve's

monetary policy decision, which is set to be announced 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.

"I'm of the camp that the Fed should really continue to take

a wait-and-see approach. Based on the data today, I would expect

that the Fed will not move this year at all," said Jack Ablin,

chief investment officer at Cresset Capital Management.

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

in May, with households purchasing more cars and other vehicles

even as they paid higher prices for gasoline.

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 11:54 a.m. ET, the Dow Jones Industrial Average

rose 229.58 points, or 0.44%, to 52,229.25, the S&P 500

gained 3.97 points, or 0.05%, to 7,515.32 and the Nasdaq

Composite lost 7.15 points, or 0.03%, to 26,369.20.

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.

However, oil prices edged higher on Wednesday after Trump

said the new ceasefire agreement with Iran was not final and

that the war could resume if he is unsatisfied.

CME Group ( CME ) slipped 4.3% after the exchange operator

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

transition to the role of executive chairman.

Shares of Allbirds ( BIRD ) soared 60% after the footwear

maker-turned-AI company changed its name to Smartbird and

appointed former Amazon executive Nadia Carlsten as

CEO.

Advancing issues outnumbered decliners by a 1.37-to-1 ratio

on the NYSE, and by a 1.78-to-1 ratio on the Nasdaq.

The S&P 500 posted 26 new 52-week highs and five new lows,

while the Nasdaq Composite recorded 61 new highs and 57 new

lows.

(Reporting by Sruthi Shankar and Twesha Dikshit in Bengaluru;

Editing by Shinjini Ganguli)