(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 0.43%, S&P 500 up 0.50%, Nasdaq up 0.43%

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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

(Updates with late morning prices)

By Purvi Agarwal and Ragini Mathur

Sept 10 (Reuters) -

The S&P 500 and the Nasdaq scaled fresh intraday record

highs on Wednesday driven by a surge in cloud computing firm

Oracle, while cooler-than-expected inflation data kept the U.S.

Federal Reserve on track to cut borrowing costs this year.

Oracle soared 41% to an all-time high and was set

for 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 $969 billion -

leapfrogging those of Eli Lilly JPMorgan Chase

and Walmart ( WMT ) - and is approaching Tesla's

$1.14-trillion market value.

Chip stocks gained, with Nvidia ( NVDA ) rising 4.3%,

Advanced Micro Devices ( AMD ) up 3.8% and Broadcom ( AVGO )

adding 9.6%.

The gains boosted the S&P 500 technology sector

2.1%, while the broader semiconductor index

rose 2.6% to touch a record high.

Data center power suppliers also benefited, with

Constellation Energy ( CEG ) up 8%, Vistra ( VST ) advancing 9%

and GE Vernova ( GEV ) rising 6.2%.

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, cementing expectations for at least a

quarter-point rate cut in September.

Bets on a 25-basis-point reduction at the Fed'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.

Declines in consumer discretionary and healthcare stocks

weighed on the Dow.

At 11:53 a.m. ET, the Dow Jones Industrial Average

fell 197.88 points, or 0.43%, to 45,513.46, the S&P 500

gained 32.77 points, or 0.50%, to 6,545.38, and the Nasdaq

Composite rose 93.85 points, or 0.43%, to 21,973.34.

Investors will now focus on the consumer prices reading, 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.

Rizzuto said any upside inflation with Thursday's CPI

report could disrupt the bets on Fed rate cuts in 2025.

Meanwhile, in a legal setback for the White House, a federal

judge on Tuesday temporarily blocked U.S. President Donald Trump

from removing Fed Governor Lisa Cook.

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.

However, brokerages including Barclays and Deutsche Bank

have raised their 2025 year-end targets for the S&P 500.

Synopsys ( SNPS ) slid 33.7% and was set for its biggest

one-day decline on record after the chip design software

provider missed Wall Street estimates for third-quarter revenue

on Wednesday. Peer Cadence Design Systems ( CDNS ) fell 7%.

Advancing issues outnumbered decliners by a 1.49-to-1 ratio

on the NYSE and by a 1.09-to-1 ratio on the Nasdaq.

The S&P 500 posted 19 new 52-week highs and six new

lows, while the Nasdaq Composite recorded 97 new highs and 43

new lows.