US STOCKS-Dow, S&P 500 hit fresh all-time peaks, but pro-Trump protests curb gains

* Democrats move closer to Senate control
* Pro-Trump protests hit Washington
* Tech behemoths slide on fears of tighter regulation
* Industrials, banks climb on stimulus hopes
* Small-cap Russell 2000 at all-time high

(Updates to midday, adds new comments, adds NEW YORK dateline,
changes byline)
By Gertrude Chavez-Dreyfuss
NEW YORK, Jan 6 (Reuters) - The Dow and the S&P 500 hit
record highs on Wednesday, as investors piled into financial and
industrial stocks on bets a Democratic sweep in Georgia would
lead to more fiscal stimulus and infrastructure spending.
But Wall Street pared gains and the Nasdaq index fell after
the U.S. Capitol went into lockdown as supporters of President
Donald Trump stormed the building. "Anything that happens that disruptive is a concern for
investors but panic is probably not a good strategy here," said
Randy Frederick, vice president of trading and derivatives for
Charles Schwab in Austin, Texas citing the break in to the
Capitol building.
Before the pro-Trump protests, financials .SPSY hit a
1-year high, while materials .SPLRCM , industrial .SPLRCI and
energy .SPNY sectors jumped held their gains.
Rate-sensitive bank shares .SPXBK jumped nearly 7%,
tracking a surge in the benchmark 10-year U.S. Treasury yield
above 1%. US/
Democrats won one U.S. Senate race in Georgia and led in
another, moving closer to a surprise sweep in a former
Republican stronghold that would give them control of Congress
and the power to advance President-elect Joe Biden's policy
goals. A final outcome is not expected until later on Wednesday.
As this developed, U.S. Vice President Mike Pence opened a
joint session of Congress to formally certify Democratic
President-elect Joe Biden's victory, rejecting President Donald
Trump's demand that he unilaterally reject electoral votes.
"The rally in the broad market is being led by traditional
value and cyclical names," said Ross Mayfield, investment
strategy analyst, at Baird. "I think that has everything to do
with the big spending that is promised in 2021, as a further
boost to the economic reopening seen to benefit those names."
A Democrat-controlled Senate typically ushers in increased
fiscal spending while raising the chances of tax hikes and
tougher regulation, and would be a net positive for economic
growth globally and thus for most risk assets. The Russell 1000 value index .RLV , which is heavily
weighted toward cyclical sectors, rose 2.8%, while the growth
index .RLG , with a large tech company weighting, shed 0.4%.
Increased risk of antitrust scrutiny of Big Tech pressured
shares of companies, with Apple Inc AAPL.O , Microsoft Corp
MSFT.O , Amazon.com Inc AMZN.O , Google-parent Alphabet Inc
GOOGL.O and Facebook Inc FB.O falling.
Tesla Inc TSLA.O was the only major technology stock
trading higher, up 4.3% to $767.01.
In early afternoon trading, the Dow Jones Industrial Average
.DJI rose 425.15 points, or 1.4%, to 30,816.75, the S&P 500
.SPX gained 29.08 points, or 0.78%, to 3,755.94 and the Nasdaq
Composite .IXIC dropped 34.53 points, or 0.27%, to 12,784.43.
The small-cap Russell 2000 index .RUT jumped 4.1% after
earlier hitting a record high.
Hopes of a vaccine-powered economic recovery in 2021 pushed
Wall Street's main indexes to record highs in late-December,
with sectors that had previously lagged, including banks,
industrials and energy, fuelling the rally.
AmerisourceBergen Corp ABC.N gained 7.3% after the U.S.
drug wholesaler said it would buy Walgreens Boots Alliance's
WBA.O drug distribution business for $6.5 billion to expand in
Europe. Dow component Walgreens rose 4.6%. Advancing issues outnumbered declining ones on the NYSE by a
1.88-to-1 ratio; on Nasdaq, a 1.82-to-1 ratio favored advancers.
The S&P 500 posted 89 new 52-week highs and !Empty value new
lows; the Nasdaq Composite recorded 311 new highs and 7 new
lows.