US STOCKS-Wall Street surges on Biden bounce

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* Biden jumps to front of the Democratic pack
* Healthcare stocks have best day in more than 11 years
* Indexes up: Dow 4.53%, S&P 4.22%, Nasdaq 3.85%

(Updates to market close)
By Stephen Culp
NEW YORK, March 4 (Reuters) - Wall Street roared back to
life on Wednesday, with both the Dow and the S&P 500 surging
more than 4%, after former Vice President Joe Biden's strong
showing in the Super Tuesday Democratic primary contests
injected a dose of confidence.
Biden's pack-leading results - on course to win in 10 of the
14 states that held primaries on Tuesday - powered
a jump in healthcare stocks, and upbeat economic data soothed
worries about the impact of the spreading coronavirus outbreak.
After the S&P 500 reached an all-time high on Feb. 19, the
stock market slid into a correction as the rapidly spreading
COVID-19 sparked recession fears.
The S&P 500 has recovered nearly 6% from Friday's closing
trough, but remains about 7.6% below the all-time high reached
on Feb 19.
The S&P 500 healthcare index .SPXHC had its best day since
November 2008, advancing 5.8%. Health insurers, in particular,
gained ground, with the S&P 500 Managed Care index .SPLRCHMO
jumping 12.4%.
Biden emerged as the front-runner in a narrowing race for
the Democratic presidential nomination following a string of
primary victories, providing relief to market participants who
are wary of the more progressive policy positions of rival
Bernie Sanders, a self-described democratic socialist. Sanders'
embrace of a Medicare for All healthcare policy that would
essentially abolish private insurance had cast a shadow on
healthcare stocks. "It's a relief to the market that it appears that Joe Biden
is increasingly likely to get the Democratic nomination," said
Oliver Pursche, vice chairman and chief market strategist at
Bruderman Asset Management in New York.
"Many Americans, even those inclined to agree with Trump's
policies, are clamoring for a unifying voice," Pursche added.
"And Joe Biden is about as benign as anyone can be."
Biden's showing acted at a balm to investors day after the
market slumped following the U.S. Federal Reserve's emergency
50-basis-point interest rate cut to head off potential economic
damage from the coronavirus outbreak. There are now 93,000
confirmed coronavirus cases worldwide. "(The Fed's rate cut) coming two weeks before a policy
meeting signals a certain level of panic," said Pursche. "We're
all worried about the coronavirus and the economic impact but so
far the data has held up."
Indeed, separate data released on Wednesday showed
stronger-than-expected private sector hiring, while the services
sector expanded at its fastest pace in a year.
Additionally, the Mortgage Bankers Association reported that
the average 30-year fixed contract mortgage rate fell last week
to a seven-year low.
The Dow Jones Industrial Average .DJI rose 1,173.45
points, or 4.53%, to 27,090.86, the S&P 500 .SPX gained 126.75
points, or 4.22%, to 3,130.12 and the Nasdaq Composite .IXIC
added 334.00 points, or 3.85%, to 9,018.09.
All of the 11 major sectors in the S&P 500 posted solid
advances, led by healthcare and utilities .SPLRCU .
Dollar Tree Inc DLTR.O forecast underwhelming
first-quarter sales and profit, sending the discount retailer's
shares down 3.6%. Abercrombie & Fitch Co ANF.N jumped 9.0% after beating
quarterly sales and profit estimates. Campbell Soup Co's CPB.N beat-and-raise earnings report
gave a 10.1% boost to its shares. Advancing issues outnumbered declining ones on the NYSE by a
5.34-to-1 ratio; on Nasdaq, a 3.64-to-1 ratio favored advancers.
The S&P 500 posted eight new 52-week highs and 31 new lows;
the Nasdaq Composite recorded 37 new highs and 130 new lows.
Volume on U.S. exchanges was 11.04 billion shares, compared
with the 10.00 billion average over the last 20 trading days.