(Adds comment, details; updates prices)
* Tech stocks fall as 10-year yields touch 14-month high
* Banks, industrial stocks gain
* Indexes down: Dow 0.26%, S&P 0.31%, Nasdaq 0.22%
March 30 (Reuters) - Wall Street’s main indexes slipped on Tuesday as investors pulled out of heavyweight tech-related stocks and flocked to undervalued banks and industrial stocks spooked by a new high in U.S. bond yields.
Apple Inc, Microsoft Corp, Amazon.com and Broadcom Inc dropped between 0.9% and 2.7%, with U.S. 10-year Treasury yield hitting a 14-month high.
The Nasdaq is set for its first monthly loss since November following a recent rise in yields that particularly hurt tech stocks, which often have a low-rate environment heavily baked into their high valuations.
“The market is focused on interest rates, the stimulus coming out of Washington DC, additional burden of that spending associated with stimulus and the rotation that has been going on from reopening growth stocks to old line value stocks,” said Robert Pavlik, senior portfolio manager at Dakota Wealth in New York.
Bets on a swift economic rebound backed by vaccine rollouts and unprecedented stimulus has helped the S&P 500 and the Dow notch record closing highs last week, while the Nasdaq is still about 7% below its all-time closing high from February.
On Wednesday, President Joe Biden will unveil more details about the first stage of his infrastructure plan, which could be worth as much as $4 trillion.
Despite market weakness, economy-linked industrials stocks hit a new peak while financials and materials traded higher. The small-cap Russell 2000 added 1.4%. Eight of the 11 major S&P sectors were in the red.
“For the next day or two, (value stocks) will probably be leaders because we have quarter-end and institutions want to make sure that they have exposure to the names that performed well,” Pavlik added.
Bank stocks rebounded 2.2% as investors took heart from signs that the impact from the fall of a U.S. hedge fund didn’t ripple out to broader markets.
Wells Fargo & Co jumped 3% after the lender said it had a prime brokerage relationship with Archegos Capital and that it no longer had any exposure and did not experience any losses.
At 11:29 a.m. ET, the Dow Jones Industrial Average fell 86.61 points, or 0.26% , to 33,084.76, the S&P 500 lost 12.35 points, or 0.31%, to 3,958.74 and the Nasdaq Composite lost 28.43 points, or 0.22%, to 13,031.22.
The Russell 2000 value index added about 0.1%, outperforming its growth stocks, which shed about 0.6% in a continuation of a trend since late last year.
GameStop Corp added about 2% after it named Amazon.com Inc executive Elliott Wilke as chief growth officer, the latest top level appointment after shareholder Ryan Cohen took charge of the video game retailer’s e-commerce pivot.
Advancing issues outnumbered decliners by a 1.2-to-1 ratio on the NYSE and by a 1.4-to-1 ratio on the Nasdaq.
The S&P 500 posted 27 new 52-week highs and no new low, while the Nasdaq recorded 47 new highs and 72 new lows. (Reporting by Devik Jain and Medha Singh in Bengaluru; Editing by Maju Samuel)