US STOCKS-Wall St climbs as GDP data eases fear of Fed pullback

Wed Jun 26, 2013 4:58pm EDT
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* S&P 500 above 1,600 for first time since last Thursday

* Adobe and Microsoft rise on analysts' upgrades

* Dow up 1 pct, S&P 500 up 1 pct, Nasdaq up 0.9 pct

By Alison Griswold

NEW YORK, June 26 (Reuters) - U.S. stocks rallied for a second day on Wednesday, recouping some recent losses on reduced concern that the Federal Reserve will begin to withdraw its stimulus in the near future.

The broad-based advance lifted the S&P 500 above the 1,600 threshold for the first time since last Thursday. Stocks have recently sold off after the Fed said it is moving closer to reducing its monthly bond-buying efforts, but the last two days of buying show some believe the market has overreacted.

A1l 10 of the S&P 500 industry sectors gained, with the healthcare and utilities sectors leading the way. Johnson & Johnson was the S&P 500's second-biggest mover. The healthcare company's stock rose 1.9 percent to $86.99.

"The market is broadly being traded up today, and I think there are a lot of people out there that are trying to put cash to work and get out of fixed income," said Brian Amidei, managing director and partner at HighTower Palm Desert in Palm Desert, California.

The rally followed data showing the U.S. economy grew at an annual rate of 1.8 percent in the first quarter, well below expectations for gross domestic product to grow at a 2.4 percent annual rate.   Continued...