CORRECTED-US STOCKS-Wall Street rallies on hopes of global economic stimulus

(Corrects that Apple provided the second-largest, not largest,
boost to S&P 500 and Dow, in 6th paragraph)
* Indexes up: Dow 0.96%, S&P 1.21%, Nasdaq 1.35%
* China unveils interest rate reform; Germany hints at
stimulus
* U.S. extends reprieve for Huawei
* Estee Lauder jumps after full-year forecast raised

By April Joyner
NEW YORK, Aug 19 (Reuters) - U.S. stocks climbed on Monday
as reports of stimulus efforts in China and Germany calmed fears
of a severe downturn in the global economy that were stoked last
week as bond yields fell.
The benchmark S&P 500 has recovered most of its losses
following Wednesday's brief inversion of the yield curve between
2-year and 10-year Treasuries, commonly viewed as an indicator
of a recession within the next two years. After falling nearly
3% on Wednesday, the S&P 500 has risen for the last three
sessions.
China's central bank unveiled a key interest rate reform on
Saturday to help steer borrowing costs lower for companies. On
Sunday, German Finance Minister Olaf Scholz suggested that
Berlin could make available up to 50 billion euros ($55 billion)
of extra spending. "Those are positive stories, and it's fostered a risk-on
environment that has persisted throughout the day," said Michael
O'Rourke, chief market strategist at JonesTrading in Greenwich,
Connecticut. "Investors are glad to see that countries are
recognizing the risks out there."
Stocks also received a boost as Washington extended by 90
days the window during which China's Huawei Technologies
HWT.UL , blacklisted by the U.S. government in May, can buy
components from U.S. companies to supply existing customers.
Shares of Apple Inc AAPL.O rose 1.9% to provide the
biggest boost to the Nasdaq and the second-largest boost to the
S&P 500 and the Dow. President Donald Trump said on Sunday that
he had spoken with Apple Chief Executive Officer Tim Cook, who
"made a good case" that tariffs could hurt Apple. The S&P 500 technology index rose 1.6%, while the
Philadelphia semiconductor index .SOX rose 1.9%.
"You're really seeing some of the trade-sensitive names
doing better," said Chris Zaccarelli, chief investment officer
of Independent Advisor Alliance in Charlotte, North Carolina.
"It's put a boost under risk assets today."
The Dow Jones Industrial Average .DJI rose 249.78 points,
or 0.96%, to 26,135.79, the S&P 500 .SPX gained 34.97 points,
or 1.21%, to 2,923.65 and the Nasdaq Composite .IXIC added
106.82 points, or 1.35%, to 8,002.81.
All of the 11 major S&P sectors were higher. Energy shares
.SPNY , which rose 2.1% as oil prices advanced, led S&P sectors
in percentage gains. Reflecting Monday's risk-on sentiment,
defensive sectors such as real estate .SPLRCR and utilities
.SPLRCU lagged the broader index in percentage gains.
Given concerns about economic growth, investors have looked
closely for cues from the Federal Reserve on monetary policy. In
July, the U.S. central bank cut interest rates for the first
time in more than a decade.
Wednesday's release of minutes from the Fed's July policy
meeting, as well as Chair Jerome Powell's speech at the Jackson
Hole symposium on Friday, might provide indications on whether
the central bank will cut rates further, investors said.
Shares of Estee Lauder Cos Inc EL.N jumped 12.5% to a
record high as the beauty company forecast full-year revenue and
profit above estimates, bolstered by booming demand for its
premium skincare products in the Asia-Pacific region.
Advancing issues outnumbered declining ones on the NYSE by a
2.81-to-1 ratio; on Nasdaq, a 2.45-to-1 ratio favored advancers.
The S&P 500 posted 57 new 52-week highs and one new low; the
Nasdaq Composite recorded 78 new highs and 60 new lows.
Volume on U.S. exchanges was 6.28 billion shares, compared
to the 7.58 billion average for the full session over the last
20 trading days.