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 .SPRLCT 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 .SPX gained 126.86 points, or 1.75%, to end at 7,393.85 points, while the Nasdaq Composite .IXIC gained 637.78 points, or 2.53%, to 25,801.47. The Dow Jones Industrial Average .DJI rose 928.72 points, or 1.84%, to 50,847.50.

On Thursday, SpaceX SPCX.O 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 ORCL.N 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.