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* Biden sweeps South in Democratic presidential primaries
* Health insurers surge as Sanders' chances diminish
* Nordstrom tumbles after disappointing 2020 profit forecast
* Indexes up: Dow 1.96%, S&P 1.57%, Nasdaq 1.38%
(Adds comment, details, updates prices)
By Medha Singh and Sanjana Shivdas
March 4 (Reuters) - Wall Street surged on Wednesday, with
healthcare stocks providing the biggest boost after Joe Biden
overtook Bernie Sanders to become the new front-runner in the
race for the Democratic presidential nomination.
The benchmark S&P 500 .SPX rose for only the second time
in 10 days, taking back more than half of a nearly 3% slide in
the previous session, when an emergency interest rate cut by the
Federal Reserve served only to amplify concerns about the
economic damage of the coronavirus outbreak.
All three main U.S. indexes remained firmly in correction
territory, down more than 10% from recent highs, and a string of
analysts stressed there was probably more trouble to come as the
outbreak continues to worsen in countries outside China.
"Today is a Joe Biden relief rally and an awareness that
Bernie Sanders may not be the potential threat to the U.S.
economy and markets," said Eric Schiffer, chief executive
officer of the private equity firm, the Patriarch Organization.
Shares of health insurers have suffered for months as
self-described socialist Sanders and his "Medicare for All"
proposal, which would eliminate private health insurance, gained
credence.
UnitedHealth Group Inc UNH.N , Centene Corp CNC.N , Humana
Inc HUM.N and Cigna Corp CI.N all surged more than 10% on
Wednesday. The broader healthcare .SPXHC index jumped 3.4%,
the most among major S&P sectors.
At 11:38 a.m. ET, the Dow Jones Industrial Average .DJI
was up 508.70 points, or 1.96%, at 26,426.11, the S&P 500 .SPX
was up 47.22 points, or 1.57%, at 3,050.59. The Nasdaq Composite
.IXIC was up 119.84 points, or 1.38%, at 8,803.93.
WILD LIFE
In a wild run for stocks, fears of a global slide into
recession, and a resulting collapse in U.S. corporate earnings
this year, have knocked $3.1 trillion off the value of major
U.S. companies in the past 10 days.
Rate-sensitive bank .SPXBK stocks were again weak, down
0.1% with the benchmark Treasury 10-year yields holding below 1%
as investors continued to buy bonds on the assumption the Fed
will have to cut again.
"Things are going to get a lot worse before they get
better," Schiffer said, adding that "the coronavirus is the
single biggest modern threat to global growth since the
recession in 2008-09."
U.S. food company Campbell Soup Co CPB.N rose 6.7% after
lifting its 2020 profit forecast, and topping analyst estimates
for the quarter on improved demand for its soups. are one company traders are watching for signs of hoarding
by consumers.
Upscale retailer Nordstrom JWN.N slid 4.9% after
forecasting a 2020 profit largely below market expectations.
Investors will also look to the Fed's beige book report,
which will offer the first snapshot from the central bank's
business contacts on how deeply the coronavirus is impacting the
domestic economy.