June 29, 2016 / 3:52 PM / 2 years ago

US STOCKS-Wall St cuts some Brexit losses as fears recede

* U.S. consumer spending up 0.4 pct in May

* Exxon leads S&P; Chevron leads Dow

* Indexes up: Dow 1.06 pct, S&P 1.19 pct, Nasdaq 1.26 pct (Adds details, comments, updates prices)

By Yashaswini Swamynathan

June 29 (Reuters) - Wall Street was sharply higher on Wednesday, with the three major indexes recovering about half the losses suffered in the aftermath of Britain’s shock vote to leave the European Union.

Investors looked for bargains among beaten-down stocks, pushing up markets for the second day after the “Brexit” verdict wiped out about $3 trillion globally in a two-day selloff.

Oil prices jumped as appetite for riskier assets increased. Exxon rose 1.4 percent and gave the biggest boost to the S&P 500, while a 2.5 percent rise in Chevron made the oil company the top influencer on the Dow.

All 10 major S&P indexes were in the black, led by a 2.26 percent jump in the energy index.

Adding to the upbeat sentiment, data showed U.S. consumer spending, which accounts for more than two-thirds of economic activity, increased 0.4 percent in May.

Investors are now hoping that central banks around the world will ease monetary policy to weather the storm as Britain and the EU chalk out the next steps for the country’s exit from the trading bloc.

“There are very reasonable expectations from central banks globally, especially from the US Federal Reserve, the ECB and the BOE, to provide more liquidity, guidance and clarity to support markets,” said Stephen Woods, chief market strategist for Russell Investments in New York.

The Fed sought to calm global financial markets on Friday by saying it was ready to provide dollar liquidity following the vote.

Traders have priced in a mere 17 percent chance of a hike as late as December, according to CME Group’s FedWatch tool.

At 11:02 a.m. ET (1502 GMT), the Dow Jones Industrial Average was up 184.63 points, or 1.06 percent, at 17,594.35, the S&P 500 was up 24.23 points, or 1.19 percent, at 2,060.32 and the Nasdaq Composite was up 59.00 points, or 1.26 percent, at 4,750.86.

Mallinckrodt rose 5.9 percent to $59.58 after BMO started coverage with an “outperform” rating. The stock was the biggest percentage gainer among S&P components.

Diamond Resorts jumped 23.7 percent to $29.78 after receiving a $2.2 billion buyout offer from Apollo Global . Apollo’s shares were flat.

Advancing issues outnumbered decliners on the NYSE by 2,589 to 360. On the Nasdaq, 2,120 issues rose and 548 fell.

The S&P 500 index showed 41 new 52-week highs and no new lows, while the Nasdaq recorded 28 new highs and 20 new lows. (Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Saumyadeb Chakrabarty)

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