May 7 (Reuters) - The Standard & Poor's 500 index closed lower on Thursday, weighed down by a decline in Intel and other chipmakers after their recent rally, while uncertainty surrounding U.S.-Iran peace talks also negatively impacted the overall market.

Shares in Arm Holdings fell as concerns about the company's ability to secure sufficient supplies for its new artificial intelligence chip overshadowed strong earnings forecasts.

Shares of Intel and Advanced Micro Devices fell after gains earlier this week.

Sources and officials said the United States and Iran are moving toward a temporary agreement to end their war, with Tehran considering a proposal that would halt the fighting while leaving the most contentious issues unresolved.

"We may have a string of days like this, but that doesn't diminish the fact that this quarter has been a strong recovery, driven by fundamentals," said Mike Dixon, head of portfolio management at Horizon Investments in Charlotte, North Carolina.

Oil prices fell slightly, trading at around $100 a barrel.

Shares of Nvidia and Microsoft rose, confirming investor confidence in Wall Street's major artificial intelligence firms.

According to preliminary data, the Standard & Poor's 500 index fell 29.46 points, or 0.40 percent, to close at 7335.66 points, while the Nasdaq Composite index fell 32.75 points, or 0.15 percent, to close at 25801.20 points.

The Dow Jones Industrial Average fell 313.34 points, or 0.64 percent, to 49,597.25 .

The continued rise in technology and artificial intelligence stocks has helped push U.S. stocks to record highs in recent days, as investors have welcomed signs of strong demand for AI and a robust earnings season.

The companies in the Standard & Poor's index are on track to achieve the strongest earnings growth in more than four years.

Positive economic readings in the past few weeks have also helped to calm concerns about the economy.

The data showed that the number of Americans filing for unemployment benefits rose less than expected last week.