(Adds market details after close of trading)

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Producer prices fall unexpectedly in August

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Oracle's forecast boosts chipmakers, power supply

companies

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Barclays, Deutsche Bank raise S&P 500 2025 year-end target

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S&P 500 +0.30%, Nasdaq +0.03%, Dow -0.48%

By Noel Randewich and Ragini Mathur

Sept 10 (Reuters) - The S&P 500 and Nasdaq notched

record-high closes on Wednesday, as Oracle surged and

cooler-than-expected inflation data supported expectations the

U.S. Federal Reserve will cut interest rates next week.

Oracle soared 36% in its biggest one-day percentage

gain since 1992 after the tech company pointed to a demand surge

from AI firms for its cloud services.

Its stock market value reached $922 billion, leapfrogging

the values of Eli Lilly ( LLY ), JPMorgan Chase ( JPM ) and

Walmart ( WMT ), and approaching Tesla's $1.12 trillion

market value.

Artificial intelligence-related chip stocks also rallied,

with Nvidia ( NVDA ) up 3.8%, Broadcom ( AVGO ) jumping 10% and

Advanced Micro Devices ( AMD ) climbing 2.4%. The PHLX chip

index rose 2.3% to a record high.

Data center power suppliers also benefited, with

Constellation Energy ( CEG ), Vistra ( VST ) and GE Vernova ( GEV )

all rising more than 6%.

Apple ( AAPL ), viewed by many investors as lagging in the

race to dominate AI, declined 3.2%, sliding for a fourth

straight session.

A cooler-than-expected producer prices reading provided

additional momentum as traders shored up their bets on

interest-rate cuts this year.

Recent labor market data has confirmed the U.S. jobs market is

in a slowdown.

Traders fully expect the Fed to cut interest rates by at

least 25 basis points at its policy meeting next week, with a

10% chance the central bank could cut by 50 basis points, CME's

FedWatch tool showed.

The S&P 500 has now climbed about 11% in 2025, while the

Nasdaq has rallied about 13%.

"The fundamentals remain very strong in the equity markets,

domestically. But we also have to acknowledge that valuations

are extended at this point and serve as some natural tension to

a continued upward trajectory," said Bill Northey, senior

investment director at U.S. Bank Wealth Management in Billings,

Montana.

The S&P 500 climbed 0.30% to end the session at 6,532.04

points, closing with a record high for the second straight day.

The Nasdaq gained 0.03% to 21,886.06 points for its third

consecutive record-high close. The Dow Jones Industrial Average

declined 0.48% to 45,490.92 points.

Six of the 11 S&P 500 sector indexes declined, led lower by

consumer discretionary, down 1.58%, followed by a

1.06% loss in consumer staples.

Investors will now focus on consumer prices data due on

Thursday, for insights on where U.S. inflation is headed.

"Combining the softer data (PPI figures) with the Fed's

increased emphasis on the labor market side and the growing

trend we've seen in downward revisions to the monthly employment

data - all support the expectation for a rate cut," said Jordan

Rizzuto, CIO at GammaRoad Capital Partners.

In a setback for the White House, a federal judge on Tuesday

temporarily blocked U.S. President Donald Trump from removing

Fed Governor Lisa Cook.

Barclays and Deutsche Bank raised their year-end targets for the

S&P 500, citing stronger corporate earnings, resilient U.S.

economic growth and optimism around artificial intelligence.

Synopsys ( SNPS ) tumbled 36% in its biggest one-day decline on

record after the chip design software provider missed Wall

Street estimates for quarterly revenue. Rival Cadence Design

Systems ( CDNS ) fell 6.4%.

Declining stocks outnumbered rising ones within the S&P 500

by a 1.5-to-one ratio.

The S&P 500 posted 19 new highs and 8 new lows; the Nasdaq

recorded 112 new highs and 72 new lows.

Volume on U.S. exchanges was relatively heavy, with 17.2

billion shares traded, compared with an average of 16.0 billion

shares over the previous 20 sessions.