US STOCKS-Wall St rallies on stimulus cheer, Apple leads tech gains

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* Indexes up: Dow 1.10%, S&P 1.16%, Nasdaq 1.45%
* Interest-rate banks gain as U.S. Treasury yields rise
* Estee Lauder jumps after FY forecast raise

(Updates to market open)
By Medha Singh
Aug 19 (Reuters) - U.S. stocks surged on Monday on growing
hopes that major economies would act to stymie the slowing
economic effects of escalating global trade tensions, while
technology stocks rose led by a nearly 3% gain in Apple's
shares.
China's central bank unveiled a key interest rate reform on
Saturday to help steer borrowing costs lower for companies,
close on the heels of news of a potential German economic
easing. The rally was also helped by easing demand for safe-haven
government bonds, with investors looking for bargains in
beaten-down stocks after three weeks of declines. Rising bond
yields gave a boost to rate-sensitive banks, sending the S&P 500
Banks index .SPXBK up 1.55%.
"The yield curve is widening and people are starting to feel
like its time to get back into stocks, especially after they've
gotten cheaper in the past few weeks," said Robert Pavlik, chief
investment strategist and senior portfolio manager at SlateStone
Wealth LLC in New York.
Traders will be split on direction for the next few weeks as
they balance trade risks and signs of slowing growth with the
potential for more action from the U.S. Federal Reserve and
others in September.
The focus this week will be on Wednesday's release of
minutes from the Fed's July policy meeting, when the central
bank cut rates for the first time in more than a decade, and
Chair Jerome Powell's speech at a central banks meeting in
Jackson Hole on Friday.
"The Street is going to be hopeful that the Fed will take
away the 'mid-cycle' comment on rate cuts, which we all know is
going to be coming," Pavlik said.
Shares of Apple Inc AAPL.O provided the biggest boost to
the three main Wall Street indexes. President Donald Trump said
on Sunday that he had spoken with Apple Chief Executive Tim Cook
about the impact of U.S. tariffs. Chipmakers, which depend on China for a large portion of
their revenue, also gained with the Philadelphia chip index
.SOX up 2.46%.
U.S. Commerce Secretary Wilbur Ross said Monday the U.S.
government will extend a reprieve given to Huawei Technologies
HWT.UL that permits the Chinese firm to buy supplies from U.S.
companies so that it can service existing customers, even as
nearly 50 of its units were being added to a U.S. economic
blacklist. At 9:45 a.m. ET, the Dow Jones Industrial Average .DJI was
up 284.13 points, or 1.10%, at 26,170.14, the S&P 500 .SPX was
up 33.43 points, or 1.16%, at 2,922.11. The Nasdaq Composite
.IXIC was up 114.49 points, or 1.45%, at 8,010.49.
All of the 11 major S&P sectors were higher with a 1.67%
rise in technology sector .SPLRCT leading gainers.
Estee Lauder Cos Inc EL.N jumped 9.3% as it forecast
full-year revenue and profit above estimates, bolstered by
booming demand for its premium skincare products and strength in
its Asia-Pacific business. Advancing issues outnumbered decliners by a 4.36-to-1 ratio
on the NYSE and by a 3.97-to-1 ratio on the Nasdaq.
The S&P index recorded 28 new 52-week highs and no new low,
while the Nasdaq recorded 44 new highs and 13 new lows.