US STOCKS-S&P 500, Nasdaq hit record closing highs, lifted by China stimulus hopes

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* Energy, tech lead sector gains
* China expected to cut benchmark interest rates
* Dow rises 0.4%, S&P climbs 0.5%, Nasdaq up 0.9%

(Updates to close)
By Caroline Valetkevitch
NEW YORK, Feb 19 (Reuters) - The S&P 500 and Nasdaq rose to
record closing highs on Wednesday as optimism that China would
take more measures to prop up its economy eased concerns about
the economic impact of the coronavirus epidemic.
Stocks held gains following the release of minutes from the
U.S. Federal Reserve's last policy meeting, which showed
policymakers were cautiously optimistic about their ability to
hold interest rates steady this year while acknowledging new
risks caused by the virus outbreak. The number of new coronavirus cases dropped for a second
straight day in China. China is widely expected to cut its benchmark lending
interest rate on Thursday, which would add to measures aimed at
limiting the impact from business shutdowns and travel curbs on
the world's second-largest economy. "It sounds as though investors are breathing a sigh of
relief that they believe the worst of the coronavirus is behind
us," said Paul Nolte, portfolio manager at Kingsview Investment
Management in Chicago.
"Investors are feeling emboldened because central banks have
got their back," he added.
Apple Inc AAPL.O rose 1.4%, recouping most of the losses
in the previous session after a surprise sales warning that
highlighted concerns about the coronavirus' impact on global
supply chains.
The S&P 500 technology sector .SPLRCT also rose, ending up
1.1%. Among sectors, it was the second-biggest percentage gainer
after energy .SPNY , which rose 1.3%.
Oil prices overall gained 2% on the back of slowing
coronavirus cases. "There seemed to be a number of high-profile companies that
were talking about coronavirus and the potential for it to
impact earnings. Today, investors are perhaps looking at markets
with more thoughtfulness, recognizing (there's) policy support
and some good news coming from the infection rates," said
Kristina Hooper, chief global market strategist at Invesco in
New York.
The Dow Jones Industrial Average .DJI rose 115.84 points,
or 0.4%, to 29,348.03, the S&P 500 .SPX gained 15.86 points,
or 0.47%, to 3,386.15 and the Nasdaq Composite .IXIC added
84.44 points, or 0.87%, to 9,817.18.
Also helping the technology sector was a 6.1% gain in
chipmaker Nvidia Corp NVDA.O after Bernstein raised its shares
to "outperform."
Among other stocks, Garmin Ltd GRMN.O jumped 6.7% after
the wearable fitness device maker forecast full-year revenue
above analysts' estimates.
Advancing issues outnumbered declining ones on the NYSE by a
1.31-to-1 ratio; on Nasdaq, a 1.54-to-1 ratio favored advancers.
The S&P 500 posted 77 new 52-week highs and 5 new lows; the
Nasdaq Composite recorded 169 new highs and 57 new lows.
Volume on U.S. exchanges was 7.22 billion shares, compared
to the 7.57 billion average for the full session over the last
20 trading days.