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* Indexes up: Dow 1.10%, S&P 1.37%, Nasdaq 1.63%
* All 11 major S&P sectors higher
* Nvidia jumps after results, lifts chip stocks
* Bank stocks rise as U.S. Treasury yields ease off lows
* FAANG stocks rise
(Changes comment, adds details, updates prices)
By Medha Singh
Aug 16 (Reuters) - U.S. stocks rose on Friday and were on
track to end a bruising week on a positive note, bolstered by
hopes of more stimulus from central banks to perk up slowing
growth.
The three main Wall Street indexes extended gains after a
report that Germany's right-left coalition government would be
prepared to ditch its balanced budget rule and take on new debt
to counter a possible recession. "This is huge news from a European perspective," said Brad
McMillan, chief investment officer of Commonwealth Financial
Network in Waltham, Massachusetts.
"One of the major constraints on ECB action has been the
German position and for this to change domestically certainly is
going to help."
The report added to sentiment after China's state planner
said it would roll out a plan to boost disposable income this
year and in 2020 to spur consumption as the economy slows.
Investors are also expecting further interest rate cuts from
the Federal Reserve.
However, the three main indexes are still set to rack up
their third consecutive week of losses, on worries of a
recession and U.S.-China trade tensions.
At 11:22 a.m. ET, the Dow Jones Industrial Average .DJI
was up 280.67 points, or 1.10%, at 25,860.06 and the S&P 500
.SPX was up 39.03 points, or 1.37%, at 2,886.63. The Nasdaq
Composite .IXIC was up 126.88 points, or 1.63%, at 7,893.50.
All of the 11 major S&P sectors were higher, with technology
stocks .SPLRCT providing the biggest boost.
Sectors seen as bond proxies due to their high dividend
yields - real estate .SPLRCR and utilities .SPLRCU - posted
small gains.
Among stocks, Nvidia Corp NVDA.O jumped 6.2% after posting
better-than-expected quarterly profit and revenue, lifting the
Philadelphia chip index .SOX 2.51%. Applied Materials Inc AMAT.O fell 1.8% after chip gear
maker cautioned that recovery in the memory chip market is
unlikely before 2020. The S&P 500 bank sub-sector .SPXBK rose 2.51% as
rate-sensitive lenders benefited from U.S. Treasury bond yields
easing off their lows. US/
The so-called FAANG group - which includes Facebook Inc
FB.O , Amazon.com Inc AMZN.O , Apple AAPL.O , Netflix Inc
NFLX.O and Google-parent Alphabet Inc GOOGL.O - gained
between 0.9% and 2.3%.
General Electric (NYSE:GE) Co GE.N jumped 7.4% as Chief Executive
Officer Larry Culp bought nearly $2 million worth of shares a
day after the stock recorded its biggest one-day percentage fall
in 11 years.
Advancing issues outnumbered decliners by a 4.09-to-1 ratio
on the NYSE and by a 3.95-to-1 ratio on the Nasdaq.
The S&P index recorded 27 new 52-week highs and seven new
lows, while the Nasdaq recorded 28 new highs and 69 new lows.