* Indexes up: Dow 0.90%, S&P 500 0.81%, Nasdaq 1.07%

* Software stocks come under pressure

* Oracle drops on forecasting spending plans above estimates

* May producer prices increase more than expected

(Updates after market open)

By Joel Jose and Twesha Dikshit

June 11 (Reuters) - Wall Street's major indexes inched

higher on Thursday, as investors sought bargains in beaten-down

technology stocks and kept a close watch on developments around

the Middle East conflict.

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.

Intel ( INTC ) soared 10%, while Nvidia ( NVDA ) and Micron

Technology ( MU ) were up 1.3% and 2.4%, respectively. The S&P

500 technology index 1.4%, while the Philadelphia SE

Semiconductor index advanced 4.5%.

Oracle shares plunged 12.5% after the company

projected capital spending plans for fiscal 2027 above Wall

Street estimates. Software shares came under

pressure, down 2.2%.

Applovin ( APP ) and Atlassian ( TEAM ) fell about 3% each,

while Servicenow, Salesforce ( CRM ) and Adobe

were down between 2.2% and 3%.

U.S. President Donald Trump said Washington would hit Iran

"very hard tonight" and soon take control of the Middle Eastern

country's oil and gas infrastructure and markets. 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 09:56 a.m. ET the Dow Jones Industrial Average

rose 450.39 points, or 0.90%, to 50,371.57, the S&P 500

gained 58.67 points, or 0.81%, to 7,325.66 and the Nasdaq

Composite gained 267.93 points, or 1.07%, to 25,437.44.

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

closing high in early June asinvestors grapple with concerns

about stretched tech valuations and tighter monetary policy,

with the Middle East conflict stoking inflationary pressures.

Ten out of 11 major S&P 500 sectors were in the green, with

industrial shares leading gains.

Communication services dropped 1.5%, as Alphabet

and Meta declined almost 2% each.

Data showed U.S. producer prices increased more than

expected in May, leading to the largest annual gain in over

three 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 steady at its policy meeting next week, 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.

Meanwhile, the World Bank cut its global growth forecast for

2026 citing the Middle East war, saying growth could slow to

just 1.3% if energy supply disruptions prove more severe and

come with substantial stress in financial markets.

Among other movers, Navan jumped 16.5% after the

corporate travel booking agency raised its full-year forecasts

for revenue and operating income on Wednesday.

Advancing issues outnumbered decliners by a 3.27-to-1 ratio

on the NYSE and by a 2.11-to-1 ratio on the Nasdaq.

The S&P 500 posted 9 new 52-week highs and 7 new lows while

the Nasdaq Composite recorded 86 new highs and 86 new lows.

(Reporting by Joel Jose and Twesha Dikshit in Bengaluru;

Editing by Shinjini Ganguli and Devika Syamnath)