US STOCKS-S&P 500 hits two-month high on growing recovery hopes

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* Big techs boost three main indexes
* Facebook, Amazon touch record highs
* Delta Air Lines CEO sees more summer flights
* Indexes up: Dow 1.19%, S&P 1.42%, Nasdaq 1.69%

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By Medha Singh and Ambar Warrick
May 20 (Reuters) - The S&P 500 hit more than a two-month
high on Wednesday as signs of additional economic stimulus
raised hopes of a swift recovery from a coronavirus-driven
slump.
The tech-heavy Nasdaq .IXIC was trading at its highest
level in three months and was about 5% below record levels,
supported by a surge in shares of Facebook Inc FB.O and
Amazon.com Inc AMZN.O to their all-time highs.
Gains were broad-based, with technology .SPLRCT and
communication services .SPLRCS providing the biggest boost to
the benchmark S&P .SPX . The small-cap Russell 2000 index
.RUT was up 2.5%.
A day earlier, U.S. Treasury Secretary Steven Mnuchin and
Federal Reserve Chair Jerome Powell reassured investors that
policymakers were ready with more aid for ailing sectors.

Massive stimulus actions and the easing of virus-led
restrictions have fueled hopes of an economic recovery and
helped the three main indexes climb about 35% from their March
lows.
"You have the S&P 500, Nasdaq and small caps all rallying -
you have a widening breadth of strength that is giving investors
encouragement," said Sam Stovall, chief investment strategist at
CFRA Research.
"In general Wall Street is saying 'I factored in a worst
case scenario and now it appears as if things are not as bad as
they might be'".
At 13:10 p.m. ET, the Dow Jones Industrial Average .DJI
was up 287.23 points, or 1.19%, at 24,494.09, the S&P 500 .SPX
was up 41.54 points, or 1.42%, at 2,964.48. The Nasdaq Composite
.IXIC was up 155.35 points, or 1.69%, at 9,340.46.
The S&P 500 rose above its 100-day moving average, a closely
watched technical indicator.
"If we can break through the 3,000 level (on the S&P 500)
with some conviction, that's going to be a positive sign, and
it's probably going to draw more money off the sidelines," said
Robert Pavlik, senior portfolio manager at Slatestone Wealth Llc
in New York.
Target Corp TGT.N slipped 2.9% after the big box retailer
reported a 64% plunge in quarterly profit, pummeled by costs to
tackle the coronavirus outbreak. S&P 1500 airlines index .SPCOMAIR gained about 3.7% as
Delta Air Lines Inc DAL.N chief executive officer said he was
confident travel will return in the next 12 to 18 months.
Advancing issues outnumbered decliners by a 3.92-to-1 ratio
on the NYSE and by a 3.36-to-1 ratio on the Nasdaq.
The S&P index recorded 13 new 52-week highs and no new lows,
while the Nasdaq recorded 69 new highs and nine new lows.