US STOCKS-S&P 500 hits 3,000 as Powell's comments raise rate cut bets

* Three main Wall Street indexes hit record high
* Fed's Powell begins two-day testimony before Congress
* Indexes up: Dow 0.27%, S&P 0.32%, Nasdaq 0.46%

(Changes comment, adds details, updates prices)
By Medha Singh
July 10 (Reuters) - The benchmark S&P 500 briefly crossed
the 3,000 points mark for the first time on Wednesday, as bets
for a sharp interest rate cut later this month were boosted by
Federal Reserve chairman Jerome Powell's dovish comments.
The Nasdaq .IXIC and the Dow Jones Industrials .DJI also
hit all-time highs after Powell said the central bank stands
ready to "act as appropriate" to support record U.S. economic
growth. Gains of near 1% each in Amazon.com AMZN.O , Apple Inc
AAPL.O and Facebook Inc FB.O also lifted the Nasdaq and the
S&P.
"Investors already got what they wanted when Powell's
statement was released. They got news that the Fed was ready to
cut (interest rates) in July," said Michael Antonelli, market
strategist at Robert W. Baird in Milwaukee.
"What the bulls are really hoping for is that this is just a
growth scare. That the Fed steps in with an insurance cut in
July and that's it, so the economy can continue at its
'muddle-along' pace of growth."
Alluding to the strong jobs data that tempered hopes of a
sharp rate cut at the end of the month, Powell said the report
did not fundamentally change the central bank's outlook and that
there is important economic data before the meeting.
Traders raised the chances of a 50 basis point reduction to
23% following the comments, according to the CME Group's
FedWatch tool. They had nearly abandoned hopes of an aggressive
reduction while still expecting the first U.S. rate cut since
the financial crisis at the July 30-31 meeting.
Investors will now parse minutes from the Fed's June policy
meeting when it will be released at 2 p.m. ET. At 11:06 a.m. ET, the Dow Jones Industrial Average .DJI
was up 71.72 points, or 0.27%, at 26,855.21, the S&P 500 .SPX
was up 9.57 points, or 0.32%, at 2,989.20. The Nasdaq Composite
.IXIC was up 37.25 points, or 0.46%, at 8,178.98.
Nine of the 11 major S&P sectors were higher, with energy
.SPNY , technology .SPLRCT and communication services
.SPLRCL leading the gainers.
Energy stocks .SPNY benefited from a jump in oil prices as
U.S. crude inventories shrank more than expected and major
producers evacuated rigs in the Gulf of Mexico ahead of an
expected storm. O/R
Shares of rate-sensitive banks .SPXBK retreated 0.89%
after Powell's comments. The financial sector .SPSY shed 0.3%.
US/
Generic drugmaker Mylan NV's MYL.O shares fell 4% after
rival Amneal Pharmaceuticals Inc AMRX.N cut its 2019 core
earnings forecast.
Advancing issues outnumbered decliners by a 1.76-to-1 ratio
on the NYSE and by a 1.04-to-1 ratio on the Nasdaq.
The S&P index recorded 63 new 52-week highs and one new low,
while the Nasdaq recorded 78 new highs and 28 new lows.