US STOCKS-Tech shares lead Wall Street higher; S&P 500 nears record high

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* Microsoft gains on $40 bln share buyback plan
* Healthcare stocks among top boosts to S&P 500
* U.S.-China low-level trade talks resume on Thursday
* Indexes up: Dow 0.44%, S&P 0.49%, Nasdaq 0.68%

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By Ambar Warrick and Medha Singh
Sept 19 (Reuters) - A Microsoft-led rally in technology
shares pushed U.S. stock indexes higher on Thursday, a day after
the Federal Reserve cut interest rates as expected and left the
door open for further monetary intervention.
Shares of the software giant MSFT.O rose 2.2% after the
company unveiled a $40 billion stock buyback plan, boosting the
S&P 500 benchmark index .SPX and driving the broader
technology sector .SPLRCT up 0.8%. The S&P 500 was about 10 points shy of its record high of
3,027.98, as markets also turned optimistic about low-level
trade talks between the United States and China.
On Wednesday, the Fed announced a quarter percentage point
cut in interest rates for the second time this year and said
future reductions would be "largely data-dependent". Traders
still see a 45% chance for another 25 basis point rate cut in
October, according to CME Group's FedWatch tool. "The market just continues to believe the Fed is going to be
accommodative," said Robert Pavlik, chief investment strategist
and senior portfolio manager at SlateStone Wealth LLC in New
York.
Deputy-level trade negotiations between the United States
and China are also fueling "hopes that something will come about
when the leaders really start talking in October," Pavlik added.
Trade officials from the two countries resumed face-to-face
talks on Thursday for the first time in nearly two months,
aiming to lay the groundwork for high-level negotiations planned
in early October. "It doesn't mean that this will be a final deal by any
stretch, but it does mean that you will have incrementally less
headwinds in the market," said Thomas Martin, senior portfolio
manager at GlobAlt Investments in Atlanta.
Prolonged Sino-U.S. trade tensions have roiled equity
markets and raised concerns over slowing global economic growth,
prompting several major central banks to trim monetary policy
to stave off a possible recession.
The Fed injected another $75 billion into the U.S. banking
system on Wednesday, restoring a measure of order after the
central bank's benchmark interest rate rose above its targeted
range for the first time since the financial crisis.
Healthcare stocks .SPXHC rose about 0.8% and were the
second-largest boost to the S&P 500 after U.S. House Speaker
Nancy Pelosi released a proposal for drug pricing policy.
The three main Wall Street indexes have recovered all their
losses from August, when renewed U.S.-China trade fears and the
prospect of a looming recession had led U.S. stock markets to
record their second monthly decline of 2019.
At 11:40 a.m. ET, the Dow Jones Industrial Average .DJI
was up 118.31 points, or 0.44%, at 27,265.39, the S&P 500 .SPX
was up 14.64 points, or 0.49%, at 3,021.37. The Nasdaq Composite
.IXIC was up 55.21 points, or 0.68%, at 8,232.60.
Shares of retailer Target Corp TGT.N edged 0.8% higher
after it announced a $5 billion share buyback plan and a
quarterly dividend. Content delivery network provider Akamai Technologies Inc
AKAM.O was down 1.5% after KeyBanc analysts downgraded the
stock to "sector weight" from "over weight". Darden Restaurants Inc DRI.N slipped 4% as the restaurant
chain operator's quarterly sales missed analysts' estimates.
Advancing issues outnumbered decliners by a 2.64-to-1 ratio
on the NYSE and a 2.33-to-1 ratio on the Nasdaq.
The S&P index recorded 21 new 52-week highs and one new low,
while the Nasdaq recorded 49 new highs and 25 new lows.