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August CPI at 0.4% MoM versus 0.3% estimated

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Micron jumps after Citigroup hikes PT

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Indexes up: Dow 0.39%, S&P 500 0.29%, Nasdaq 0.26%

(Updates after markets open)

By Purvi Agarwal and Shashwat Chauhan

Sept 11 (Reuters) - Wall Street's main indexes rose on

Thursday after the latest inflation data did little to alter

market expectations of interest rate cuts, with healthcare and

technology stocks leading gains.

U.S. consumer prices rose more than expected in August and

the annual increase in inflation was the largest in seven

months. The data, however, did not shake up already priced-in

rate cut expectations.

The Fed is widely expected to cut rates by at least 25

basis points next week and

pricing

now reflects bets on three straight quarter-point cuts, one

at each meeting left this year.

"Inflation is firming, not as much as we expected, but

firming nonetheless ... in a way, that the market can digest

it," said Gary Schlossberg, global strategist at Wells Fargo

Investment Institute.

"We're not looking for a jumbo cut as some had expected

...(the data) may temper the market's enthusiasm for big cuts,

but it (does not) really change the trajectory at the margin."

In a separate reading, initial jobless claims for the week

ended September 6 stood at 263,000, beating estimates.

The data follows a producer inflation reading, which fell

unexpectedly, and a series of economic indicators that point to

continued labor market weakness.

At 09:39 a.m. ET, the Dow Jones Industrial Average

rose 176.87 points, or 0.39%, to 45,667.79, the S&P 500

gained 18.79 points, or 0.29%, to 6,550.83 and the Nasdaq

Composite gained 56.10 points, or 0.26%, to 21,942.16.

Eight of the 11 S&P 500 sub-sectors were on the rise,

with health care advancing the most, up 0.8%.

Health insurer Centene ( CNC ) advanced 10% after the

company said its financial results through August are consistent

with its full year guidance.

Micron Technology ( MU ) gained 10.3% after Citigroup

raised its price target on the memory chipmaker to $175 from

$150. The Philadelphia SE Semiconductor Index rose 1%, up

for the sixth straight session.

Communication services lagged, down 0.4%.

The S&P 500 and the Nasdaq notched record high closes on

Wednesday, partly helped by a nearly 36% surge in Oracle

after an upbeat forecast that brought the cloud

computing company closer to joining the trillion-dollar club.

It revived the AI trade on Wednesday, sparking a rally in

artificial-intelligence-linked chip and utility companies

supplying power to data centers.

Oracle, however, dropped 2.6% in early trading.

Wall Street's three main indexes have had a broadly positive

start to September - a month that is deemed bad historically for

U.S. equities. In the month, the benchmark S&P 500 has shed 1.5%

on average since 2000, data compiled by LSEG showed.

Advancing issues outnumbered decliners by a 2.61-to-1 ratio

on the NYSE and by a 2.13-to-1 ratio on the Nasdaq.

The S&P 500 posted 13 new 52-week highs and three new

lows, while the Nasdaq Composite recorded 46 new highs and 19

new lows.