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

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* Fed sees case building for rate cuts this year
* Financials fall; Energy up most among S&P sectors
* Carnival Corp slides on 2019 profit warning
* Indexes up: Dow 0.68%, S&P 0.59%, Nasdaq 0.59%

(Updates prices, adds comments)
By Shreyashi Sanyal
June 20 (Reuters) - The S&P 500 index touched an all-time
high on Thursday, after the Federal Reserve indicated that it
could cut interest rates as early as July to combat 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 at the Group of 20 meeting
next week in Osaka, Japan.
The benchmark S&P 500 index .SPX , which has risen 7% 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.
"It was always going to be difficult for the Fed to live up
to high market expectations. While the bar was set high,
policymakers appear to have cleared it with ease while also
leaving themselves with plenty of outs," said Craig Erlam,
senior market analyst at OANDA in London.
"It's clear that the G20 meeting next week will either give
them (the Fed) that out or make the decision to cut quite
straightforward."
Financial stocks .SPSY dropped 0.42%, while the energy
index .SPNY jumped 2.16%, the most among all 11 major S&P
sectors, as oil prices surged over 4% on renewed tensions in the
Middle East after Iran shot down a U.S. military drone. O/R
At 11:23 a.m. ET the Dow Jones Industrial Average .DJI was
up 179.03 points, or 0.68%, at 26,683.03 and the S&P 500 was up
17.35 points, or 0.59%, at 2,943.81.
The Nasdaq Composite .IXIC was up 46.86 points, or 0.59%,
at 8,034.19.
The technology sector .SPLRCT rose 1.16%, boosting the S&P
500 by the most, with Oracle Corp ORCL.N leading the charge.
Shares of the business software maker jumped 8.30%, after it
forecast current-quarter profit above estimates. Co BA.N gained 0.83% 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 10.22%, 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 weakening demand in Europe over political uncertainty.
Rivals Royal Caribbean Cruises Ltd RCL.N and Norwegian
Cruise Line Holdings Ltd NCLH.N dropped about 3% 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 2.92-to-1 ratio
on the NYSE and by a 1.62-to-1 ratio on the Nasdaq.
The S&P index recorded 95 new 52-week highs and three new
lows, while the Nasdaq recorded 113 new highs and 26 new lows.