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US STOCKS-Nasdaq futures drop as spike in bond yields hurts tech stocks

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* Ulta Beauty slumps as revenue forecast disappoints

* Benchmark yields approach one-year highs

* Three major indexes set for best week in six

* Futures off: Dow 0.06%, S&P 0.57%, Nasdaq 1.76% (Adds comment, details; updates prices)

March 12 (Reuters) - Futures tracking the S&P 500 and the Dow slipped on Friday after ending at record closing highs in the prior session as a spike in U.S. bond yields reignited inflation worries and dented appetite for high-growth stocks.

Nasdaq 100 futures were down 1.67% after rebounding more than 6% over the past three sessions.

Still, Wall Street’s main indexes are set for their best week in six after one of the largest U.S. fiscal stimulus was signed into law and data showed fewer-than-expected jobless claims numbers.

U.S. stock indexes are recovering after coming under pressure in recent weeks as a consistent rise in U.S. bond yields has raised fears of a sudden tapering of monetary stimulus.

The yield on the benchmark 10-year notes rose back above 1.60% on Friday to approach the one-year highs touched last week.

“The risks of inflation picking up have increased significantly due to a jump in money supply through stimulus and the anticipated demand that we might see as the economy slowly unlocks,” said Jonathan Bell, chief investment officer at Stanhope Capital in London.

Improving economic data and more fiscal stimulus have also added to concerns of higher inflation despite assurances from the Federal Reserve to maintain an accommodative policy. All eyes will now be on the central bank’s policy meeting next week for further cues on inflation.

Investors will look to data on consumer sentiment by the University of Michigan later in the day.

S&P 500 E-minis were down 20.75 points, or 0.53% and Dow E-minis were down 17 points, or 0.05%, with 26,467 contracts changing hands.

The Nasdaq has been particularly hit by the sell-off in recent weeks and entered correction territory on Monday as investors swapped richly valued technology stocks with those of energy, mining and industrials companies that are poised to benefit more from an economic recovery.

The yield-sensitive group of Facebook Inc Apple Inc , Amazon.com Inc, Netflix Inc, Google-parent Alphabet Inc, Tesla Inc and Microsoft Corp were down between 1% and 3% in premarket trading.

Big U.S. banks including JPMorgan Chase & Co, Bank of America Corp and Citigroup Inc were among the few gainers in early deals.

U.S.-listed shares of China-based JD.com Inc dropped nearly 3% after three sources said it is in talks to buy part or all of a stake in brokerage Sinolink Securities worth at least $1.5 billion.

Cosmetics retailer Ulta Beauty Inc slumped about 8% after its annual revenue forecast missed estimates, as demand for make-up products were under pressure due to extended work-from-home policies.

The company also named President Dave Kimbell as its new chief executive officer. (Reporting by Sagarika Jaisinghani in Bengaluru; Editing by Maju Samuel)

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