US STOCKS-S&P 500 hits all-time high as Fed signals rate cuts

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* Fed sees case building for rate cuts this year
* Financials flat; Energy up most among S&P sectors
* Carnival Corp slides on cutting 2019 profit forecast
* Indexes up: Dow 0.91%, S&P 0.96%, Nasdaq 1.15%

(Updates to open)
By Shreyashi Sanyal
June 20 (Reuters) - The S&P 500 index hit a record high on
Thursday, after the Federal Reserve indicated that it could cut
interest rates as soon as next month to offset growing risks to
global and domestic growth.
The U.S. central bank left rates unchanged at the end of its
two-day June policy meeting on Wednesday, but pledged to "act as
appropriate" to sustain economic health. Wall Street's main indexes have gained in recent weeks on
expectations of a rate cut and hopes of a revival of trade talks
between the United States and China.
The benchmark S&P 500 index .SPX , which has risen 7.4% so
far in June and is on track to recoup its previous month's
losses, hit an intraday record high of 2,956.20 on Thursday.
"Chairman Jerome Powell's comments that 'the case for
additional accommodation has strengthened' was exactly what
market participants wanted to hear," said Robert Johnson, chief
executive officer at Economic Index Associates in New York.
"A continued trade war with China could be the catalyst that
sends the U.S. economy into recession and rates cuts can be
viewed as preemptive strikes by the Fed to prevent that from
happening."
Financial stocks .SPSY were flat, while the energy index
.SPNY jumped 1.98%, the most among all 11 major S&P sectors,
as oil prices surged over 3% on renewed tensions in the Middle
East after Iran shot down a U.S. military drone. O/R
At 9:53 a.m. ET, the Dow Jones Industrial Average .DJI was
up 241.66 points, or 0.91%, at 26,745.66 and the S&P 500 was up
28.07 points, or 0.96%, at 2,954.53.
The Nasdaq Composite .IXIC was up 91.66 points, or 1.15%,
at 8,078.98.
The technology sector .SPLRCT rose 1.57%, boosting the S&P
500 by the most, with large-cap favorites Microsoft Corp
MSFT.O and Apple Inc AAPL.O leading the charge.
Also helping tech stocks was Oracle Corp ORCL.N , which
jumped 8.15%, after the business software maker forecast
current-quarter profit above estimates.
Boeing Co BA.N gained 1.01% after the planemaker said it
is in talks with other airlines for sales of its 737 MAX after
receiving a letter of intent for 200 of the grounded planes from
British Airways owner IAG ICAG.L . Cruise operator Carnival Corp CCL.N slid 9.77%, the most
among S&P companies, after cutting its profit forecast for the
year on the Trump administration's sudden ban on cruises to Cuba
and expected lower ticket prices in the coming months.
Rivals Royal Caribbean Cruises Ltd RCL.N and Norwegian
Cruise Line Holdings Ltd NCLH.N dropped more than 2% each.
Buoying sentiment further was data which showed the number
of Americans filing applications for unemployment benefits fell
more than expected last week, pointing to underlying labor
market strength despite a sharp slowdown in job growth in May.
Advancing issues outnumbered decliners by a 6.14-to-1 ratio
on the NYSE and by a 3.14-to-1 ratio on the Nasdaq.
The S&P index recorded 92 new 52-week highs and two new
lows, while the Nasdaq recorded 99 new highs and 16 new lows.