(For a Reuters live blog on U.S., UK and European stock

markets, click or type LIVE/ in a news window.)

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Indexes: Dow down 0.19%, S&P 500 up 0.48%, Nasdaq up 0.33%

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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 raises S&P 500 2025 year-end target

(Updates after markets open)

By Purvi Agarwal and Ragini Mathur

Sept 10 (Reuters) -

The S&P 500 and the Nasdaq hit intraday record highs on

Wednesday after cooler-than-expected inflation data kept the

U.S. central bank on track to cut borrowing costs this year,

while a surge in cloud computing firm Oracle added to gains.

U.S. producer prices fell unexpectedly in August, dragged

lower by a decline in the cost of services, with traders shoring

up their bets on interest-rate cuts this year.

Bets on a 25-basis-point reduction at the U.S. Federal

Reserve's September 16-17 meeting stood at 90%, while those on a

larger 50-bps cut were at about 10%, CME's FedWatch tool showed.

"Any and all signs that inflation is coming down...

(are) welcomed with a big please and thank you from the market

and from the Fed," said Adam Sarhan, chief executive of 50 Park

Investments.

"The fact that producer prices, which are more prone to the

tariffs, came down, that's bullish for stocks... It gives the

Fed more room to cut rates."

Oracle surged 35% to a record high, and was set

for its biggest one-day percentage gain since 1992, after saying

it expected booked revenue at its Oracle Cloud Infrastructure

business to exceed half a trillion dollars.

Some chipmakers rose on the news, with Nvidia ( NVDA )

rising 3.6%, Advanced Micro Devices ( AMD ) up 3.1% and Broadcom ( AVGO )

adding 6.2%.

The gains boosted technology stocks 1.8%, while

the broader semiconductor index gained 2.2% to touch a

record high.

Data center power suppliers also benefited from Oracle's

upbeat forecast. Constellation Energy ( CEG ) was up 5%, Vistra ( VST )

advanced 5.1% and GE Vernova ( GEV ) rose 5%.

Declines in consumer discretionary stocks weighed on the

Dow.

At 09:41 a.m. ET, the Dow Jones Industrial Average

fell 85.24 points, or 0.19%, to 45,626.10, the S&P 500

rose 31.47 points, or 0.48%, to 6,543.78, and the Nasdaq

Composite added 74.71 points, or 0.33%, to 21,952.25.

Markets will now focus on the U.S. consumer prices reading

that is due on Thursday for insights on where U.S. inflation is

headed.

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

in a slowdown, prompting traders to price in an at least 25-bps

cut in interest rates in September.

Meanwhile, a federal judge on Tuesday temporarily blocked

Trump from removing Fed Governor Lisa Cook, in a legal setback

for the White House.

The three main indexes had closed at record peaks on Tuesday

following a downward payrolls revision that kept rate-cut bets

intact, while a rise in UnitedHealth's ( UNH ) shares aided

gains.

Wall Street has had a broadly positive start to September -

a month deemed historically bad for U.S. equities - with the

benchmark index losing 1.5% on average since 2000, according to

data compiled by LSEG.

Barclays raised its 2025 year-end target for the S&P

500, for the second time in three months, to 6,450 from 6,050.

In other stocks, Synopsys ( SNPS ) slid 33% after the chip

design software provider missed Wall Street estimates for

third-quarter revenue on Wednesday. Peer Cadence Design Systems ( CDNS )

fell 8.6%.

Advancing issues outnumbered decliners by a 2.03-to-1 ratio

on the NYSE and by a 1.35-to-1 ratio on the Nasdaq.

The S&P 500 posted 14 new 52-week highs and four new

lows, while the Nasdaq Composite recorded 65 new highs and 20

new lows.