Updates with prices, analyst comment

By Twesha Dikshit and Joel Jose

June 9 (Reuters) - The S&P and the Nasdaq dipped on Tuesday, erasing early gains as tech stocks lost momentum, with investors turning cautious ahead of inflation data and a highly anticipated SpaceX IPO later this week.

AI stocks saw a sharp sell-off on Friday, after Broadcom's disappointing forecast fueled concerns about high valuations in the sector, particularly in chipmakers, which have rallied strongly this year.

Shares of chipmakers Intel INTC.O, Broadcom AVGO.O and Micron Technology MU.O dropped between 1.7% and 2%. The Philadelphia SE Semiconductor index .SOX fell 2% after rising as much as 3% in early trading.

The S&P 500 tech index .SPLRCT shed almost 1.7%. Heavyweight Nvidia NVDA.O fell 1.2%, while Apple AAPL.O and Microsoft MSFT.O lost 3% and 1.1%, respectively.

"Tech stocks, that's where a lot of the growth and momentum has been during this recent leg of the rally," said Jordan Rizzuto, CIO at GammaRoad Capital Partners.

"They are typically the most rate sensitive. And so it's no surprise that with increased uncertainty around rate expectations, that shorter term positioning in those sectors, tech particularly, are seeing some profit taking."

A stronger-than-expected jobs report on Friday added to concerns that the Federal Reserve will raise interest rates this year. Traders are pricing in a 43% chance of a 25 basis point rate hike in December, as per CME Group's FedWatch tool.

Consumer prices data for May, due on Wednesday, will be closely watched for fresh clues on how the rise in energy prices due to the Iran war is impacting inflation.

At 11:00 a.m. ET, the Dow Jones Industrial Average .DJI rose 131.61 points, or 0.26%, to 50,917.62, the S&P 500 .SPX lost 16.10 points, or 0.22%, to 7,389.63 and the Nasdaq Composite .IXIC lost 176.07 points, or 0.68%, to 25,753.60.

SpaceX's $1.75 trillion market debut on Friday could also be a hurdle for U.S. stocks as investors worry about possible overexuberance among high-growth technology stocks. Elon Musk's SpaceX is aiming to raise $75 billion, the most ever for an IPO.

"Funds and ETFs have to make room for SpaceX in their portfolios," said Paul Nolte, senior wealth advisor and market strategist for Murphy & Sylvest.

Advancing issues outnumbered decliners by a 1.72-to-1 ratio on the NYSE, and by a 1.32-to-1 ratio on the Nasdaq.

The S&P 500 posted 26 new 52-week highs and 6 new lows, while the Nasdaq Composite recorded 133 new highs and 84 new lows.