* Oracle drops on forecasting spending plans above estimates

* Tech stocks up after Wednesday declines

* SpaceX market debut due Friday

(Updates to close)

By Caroline Valetkevitch and Joel Jose

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

sharply higher on Thursday, with stocks extending gains after

U.S. President Donald Trump said he canceled planned strikes

against Iran, and on the eve of the market debut of Elon Musk's

SpaceX.

Hours before the expected strikes, Trump said on Truth

Social that negotiations with Tehran had advanced to the highest

levels of Iran's leadership and had been okayed by a broad

coalition of regional powers.

Oil prices dropped sharply, while stocks added to their

rebound from the prior session's selloff. On Wednesday, major

Wall Street indexes fell more than 1% and the S&P 500 Technology

Index confirmed a correction.

"Our technical indicators are looking relatively oversold

here," said Robert Phipps, a director at Per Stirling Capital

Management in Austin, Texas. "Just as we had gone up too far,

too fast, we came down too far, too fast."

According to preliminary data, the S&P 500

gained 126.86 points, or 1.75%, to end at 7,393.85

points, while the Nasdaq Composite gained 637.78 points,

or 2.53%, to 25,801.47. The Dow Jones Industrial Average

rose 928.72 points, or 1.84%, to 50,847.50.

On Thursday, SpaceX priced the biggest-ever U.S.

initial public offering at $135 per share, making Musk's rocket

and spacecraft manufacturer one of the world's most valuable

companies. The IPO raised a record $75 billion on the sale of

555.56 million shares. It valued the company at $1.77 trillion,

a record for an initial offering.

SpaceX shares are expected to begin trading on Friday.

The S&P 500 has pulled back since hitting a record closing

high in early June. The Middle East conflict has stoked

inflationary pressures.

Still, Oracle shares plunged after the company

projected capital spending plans for fiscal 2027 above Wall

Street estimates.

Feeding inflation worries, 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.