* Futures up: Dow 0.5%, S&P 500 0.45%, Nasdaq 0.82%

* Oracle drops on forecasting spending plans above estimates

* Futures pare gains after May PPI, weekly jobless claims

data

(Updates to pre-open prices)

By Joel Jose and Twesha Dikshit

June 11 (Reuters) - U.S. stocks were set to open higher on

Thursday, as investors sought bargains in beaten-down technology

stocks and kept a close watch on developments around the Middle

East conflict and its impact on economies and businesses.

Chipmakers bounced back after Wednesday's selloff sent major

Wall Street indexes down more than 1% and technology stocks into

correction territory, a 10% drop from their record close.

Nvidia ( NVDA ), Intel ( INTC ) and Micron Technology ( MU )

were up between 1% and 4.6% in premarket trading.

The United States will hit Iran "very hard tonight" and soon

take control of the Middle Eastern country's oil and gas

infrastructure and markets, U.S. President Donald Trump said.

Futures pared some of their earlier gains, while oil prices

edged higher.

"That's (Trump's warning) a pretty worrisome thought for the

market but what we're seeing here is a market that may have been

grossly oversold over the past few days. And so that's why we're

seeing some sort of a bump," said Phil Blancato, chief market

strategist at Osaic Wealth.

At 09:02 a.m. ET, Dow E-minis were up 248 points, or

0.5%, and S&P 500 E-minis were up 33 points, or 0.45%.

Nasdaq 100 E-minis were up 233.25 points, or 0.82%.

The S&P 500 has dropped about 4% since hitting a record

closing high in early June. Investors are grappling with

concerns about stretched valuations in the technology sector and

tighter monetary policy, as the Middle East conflict sends

energy prices soaring, stoking inflationary pressures.

Data showed U.S. producer prices increased more than

expected in May, leading to the largest annual gain in 3-1/2

years.

Separately, the number of Americans filing claims for

unemployment benefits increased marginally last week.

The Federal Reserve is widely expected to hold interest

rates in the 3.50%-3.75% range at its next policy meeting on

June 17, with investors pricing in at least one 25 basis point

rate hike by the end of the year.

The highly anticipated Friday market debut of Elon Musk's

SpaceX, set to be valued at $1.75 trillion, could also test the

rally this year that has repeatedly lifted stocks to record

levels.

Among other movers, Oracle shares plunged 9% after

the company projected capital spending plans for fiscal 2027

above Wall Street estimates, underscoring the heavy cash outlays

required to expand its AI infrastructure.

Shares of Navan jumped 21% after the corporate

travel booking agency raised its full-year forecasts for revenue

and operating income on Wednesday, citing strong business travel

demand and growth in its enterprise customer base.

(Reporting by Joel Jose and Twesha Dikshit in Bengaluru;

Editing by Devika Syamnath and Shinjini Ganguli)