US STOCKS-S&P 500, Nasdaq ease; investors weigh updates on Israel-Iran conflict

By Caroline Valetkevitch

NEW YORK, June 20 (Reuters) - The S&P 500 and Nasdaq were slightly lower on Friday afternoon, with investors on edge over the Iran-Israel conflict as the U.S. considers whether to get involved.

Stocks were choppy, with the S&P 500 trimming some losses. Iran's Foreign Minister Abbas Araqchi said Tehran backed continued discussions with Germany, France, Britain and the EU and would be prepared to meet again soon following talks in Geneva.

The White House said on Thursday that Trump will decide in the next two weeks whether the U.S. will get involved in the Israel-Iran air war, adding pressure on Tehran to negotiate.

"Investors are a little bit nervous about buying stocks right in front of this situation and, more specifically, right in front of this weekend," said Rick Meckler, a partner at Cherry Lane Investments in New Vernon, New Jersey.

Israel's attacks have been aimed at suppressing Tehran's ability to build nuclear weapons.

Investors weighed comments from Federal Reserve officials after the Fed on Wednesday left interest rates unchanged and Fed Chair Jerome Powell warned inflation could pick up pace over the summer.

Fed Governor Christopher Waller said he felt the inflation risk from tariffs was small, and that the Fed should cut rates as soon as its next meeting. Richmond Fed President Tom Barkin took a more tempered view, saying there was no urgency to cut rates.

Tech-related megacap stocks, including Nvidia NVDA.O, were the biggest negatives on the S&P 500 and Nasdaq.

The Dow Jones Industrial Average .DJI rose 44.37 points, or 0.11%, to 42,216.03, the S&P 500 .SPX lost 6.50 points, or 0.11%, to 5,974.37 and the Nasdaq Composite .IXIC lost 68.64 points, or 0.35%, to 19,477.63.

Investors are also bracing for any potential spike in volatility from Friday's "triple witching" - the simultaneous expiration of single stock options, stock index futures, and stock index options contracts that happens once a quarter.

Kroger KR.N rose 8.9% after the grocery chain increased its annual sales growth forecast.

Shares of Accenture ACN.N fell 6.9% after the IT services provider said new bookings decreased in the third quarter.

Declining issues outnumbered advancers by a 1.04-to-1 ratio on the New York Stock Exchange. There were 87 new highs and 44 new lows on the NYSE.

On the Nasdaq, 1,897 stocks rose and 2,523 fell as declining issues outnumbered advancers by a 1.33-to-1 ratio.