US STOCKS-Wall St climbs as investors hold out for recovery; Nasdaq at 3-month high

(For a live blog on the U.S. stock market, click LIVE/ or
type LIVE/ in a news window)
* Big techs boost three main indexes
* Analog Devices jumps after rosy outlook
* Delta Air Lines CEO sees more summer flights
* Indexes up: Dow 1.43%, S&P 1.61%, Nasdaq 1.84%

(Updates to open)
By Medha Singh and Ambar Warrick
May 20 (Reuters) - Wall Street's main indexes surged and the
Nasdaq hit a three-month high on Wednesday, as investors clung
to hopes of a recovery from a coronavirus-fueled slump amid
signs of more stimulus for ailing sectors.
The tech-heavy index, now about 5% below its all-time high
hit in February, boosted by Facebook Inc FB.O and Amazon.com
Inc AMZN.O , which were trading at record levels, as well as
Apple Inc AAPL.O .
The S&P 500 .SPX was about 12% below its all-time peak and
the Dow Jones index .DJI was short by 17%.
The three indexes have rallied more than 30% from March lows
on unprecedented stimulus, but gains have been capped this month
as traders digest mixed headlines on progress in developing a
coronavirus vaccine.
The S&P 500 tumbled 1% in the final hour of Tuesday's
session after a report raised doubts about positive results from
Moderna Inc's MRNA.O early-stage trial for a COVID-19 vaccine.
"We don't expect very big gains from here, but we don't
expect a downward trend either," said Simona Gambarini, markets
economist at Capital Economics in London.
"As the lockdowns are eased and the coronavirus epidemic is
brought under control in more and more countries, some recovery
in the economy is already factored into the equity prices."
U.S. Treasury Secretary Steven Mnuchin and Federal Reserve
Chair Jerome Powell said on Tuesday the government and the
central bank were considering more steps to ensure the worst-hit
areas of the economy received adequate support. All eyes are now on the minutes from the Fed's latest policy
meeting expected at 2 p.m. ET or 1800 GMT.
At 10:02 a.m. ET, the Dow Jones Industrial Average .DJI
was up 347.25 points, or 1.43%, at 24,554.11, the S&P 500 .SPX
was up 47.12 points, or 1.61%, at 2,970.06. The Nasdaq Composite
.IXIC was up 168.87 points, or 1.84%, at 9,353.97.
Gains were broad-based with the cyclical sectors including
industrials .SPLRCI , energy .SPNY and materials .SPLRCM
posting their biggest percentage gains on hopes of a pick-up in
demand.
Home improvement chain Lowe's Cos Inc LOW.N rose 1.8%
after posting higher quarterly same-store sales. Analog Devices Inc ADI.O gained 7.3% after the chipmaker
forecast third-quarter profit ahead of expectations.
Target Corp TGT.N slipped 0.7% after the big box retailer
reported a 64% plunge in quarterly profit, pummeled by costs to
tackle the coronavirus outbreak. S&P 1500 airlines index gained about 4.5% as Delta Air Lines
Inc DAL.N chief executive officer said he was confident travel
will return in the next 12 to 18 months. Advancing issues outnumbered decliners by a 7.11-to-1 ratio
on the NYSE and by a 4.45-to-1 ratio on the Nasdaq.
The S&P index recorded 11 new 52-week highs and no new lows,
while the Nasdaq recorded 49 new highs and six new lows.