(Updates with afternoon trading, adds analyst comment, market

details)

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Boeing shares fall after Air India plane crash

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Oracle up after raising its annual revenue forecast

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S&P 500 +0.28%, Nasdaq +0.22%, Dow +0.14%

By Noel Randewich, Sukriti Gupta

June 12 (Reuters) - U.S. stocks rose on Thursday after a

strong outlook from Oracle fueled optimism around artificial

intelligence, offsetting worries about tension in the Middle

East and a drop in Boeing shares.

Oracle surged 14% to record highs after the cloud

service provider raised its annual revenue growth forecast,

driven by strong demand for its AI-related services.

Heavyweight tech companies Microsoft ( MSFT ) and Nvidia ( NVDA )

each gained more than 1%, while Broadcom ( AVGO ) added

almost 1%.

"Oracle is another piece in the mosaic of AI capex spending

and the ongoing need for more compute that feeds into the AI

revolution," said Art Hogan, chief market strategist at B. Riley

Wealth. "When the winds blow in that direction, you're

definitely going to see the key players like Microsoft ( MSFT ) and

Nvidia ( NVDA ) also catch that tailwind."

Boeing fell almost 5% after an Air India 787-8 Dreamliner jet

crashed minutes after taking off in India's western city of

Ahmedabad, killing more than 200 people.

Signs of rising tensions in the Middle East also weighed on

global markets.

U.S. President Donald Trump said on Wednesday that U.S.

personnel were being moved out of the region as it could be a

"dangerous place" and the United States would not allow Iran to

have a nuclear weapon. Officials from both countries are

scheduled to meet in Oman on Sunday for a sixth round of nuclear

talks.

The S&P 500 was up 0.28% at 6,038.81 points.

The Nasdaq gained 0.22% to 19,658.98 points, while the Dow

Jones Industrial Average was up 0.14% at 42,926.15 points.

Of the 11 S&P 500 sector indexes, seven rose, led by

information technology, up 0.98%, followed by a 0.93%

gain in utilities.

U.S.-listed shares of gold miners also advanced, as bullion

prices hit a one-week high. Newmont ( NEM ) gained 4%, Harmony

Gold was up 3.7% and AngloGold Ashanti ( AU ) rose 6.4%.

Softer-than-expected producer price data and initial jobless

claims numbers pointing to a potential weakening in the labor

market helped reduce investor jitters around tariff-driven price

pressures, while also boosting expectations the U.S. Federal

Reserve will cut interest rates.

Traders project a 60% chance of a 25-basis-point cut by

September, according to the CME Group's FedWatch tool.

Fed policymakers are widely expected to keep rates unchanged

at next week's policy meeting.

With investors expecting Trump to reach trade agreements

with several countries in the coming weeks, the benchmark S&P

500 index is about 2% below its February record high.

Goldman Sachs trimmed its U.S. recession probability to 30% from

35% on easing uncertainty around Trump's tariff policies.

Advancing issues outnumbered falling ones within the S&P 500

by a 1.3-to-one ratio.

The S&P 500 posted 10 new highs and 3 new lows; the Nasdaq

recorded 44 new highs and 59 new lows.