US STOCKS-S&P 500, Nasdaq fall as yields spike

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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
* Indexes: Dow up 0.48%, S&P down 0.33%, Nasdaq drops 1.25%

(Adds comment, details; updates prices)
By Shashank Nayar and Medha Singh
March 12 (Reuters) - The S&P 500 slipped on Friday after
hitting an all-time high in the prior session, as a spike in
U.S. bond yields revived inflation worries and dented appetite
for high-growth stocks.
The tech-heavy Nasdaq tumbled 1.3% after rebounding more
than 6% over the past three sessions, while the blue-chip Dow,
on the other hand, hit its fifth consecutive record high.
Wall Street's main indexes are set for their best week in
six after one of the largest U.S. fiscal stimulus bills was
signed into law and data reinforced views that the economy was
on the path to a recovery.
A consistent rise in U.S. bond yields has raised fears of a
sudden tapering of monetary stimulus, pressuring the main U.S.
stock indexes in recent weeks.
The yield on the benchmark 10-year notes US10YT=RR rose
back above 1.60% on Friday to approach the one-year highs
touched last week. US/
"We are back to the idea that more growth is more inflation
and investors are a little nervous about current yield levels
which is affecting tech stocks," said Victoria Fernandez, chief
market strategist at Crossmark Global Investments in Houston,
Texas.
"It's all about the pace in which yields grow and the market
seems to be comfortable with another 10-20 basis points jump in
the benchmark yield if backed up by strong data that shows
economic recovery."
Speedy vaccine distribution and more fiscal aid 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.
U.S. consumer sentiment improved in early March to its
strongest in a year, a survey by the University of Michigan
showed on Friday. At 11:31 a.m. ET, the Dow Jones Industrial Average .DJI
rose 156.47 points, or 0.48%, to 32,642.06, the S&P 500 .SPX
lost 12.90 points, or 0.33%, to 3,926.44 and the Nasdaq
Composite .IXIC lost 168.11 points, or 1.25%, to 13,230.56.
The Nasdaq has been particularly hit by the sell-off in
recent weeks and confirmed a correction at the start of the week
as investors swapped richly valued technology stocks with those
of energy, mining and industrials companies that are poised to
benefit more from an economic rebound.
Value stocks .RLV added about 0.5%, while growth stocks
.RLG slumped 1.5% in a continuation of a rotation that began
late last year.
The yield-sensitive group of Facebook Inc FB.O Apple Inc
AAPL.O , Amazon.com Inc AMZN.O , Netflix Inc NFLX.O ,
Google-parent Alphabet Inc GOOGL.O , Tesla Inc TSLA.O and
Microsoft Corp MSFT.O were down between 1.2% and 3%.
Tech .SPLRCT , communication services .SPLRCL and
consumer discretionary .SPLRCD indexes, which house these
mega-cap stocks, slipped the most among major S&P sectors.
The bank index .SPXBK jumped 1.7%, while financials
.SPSY and industrials .SPLRCI clinched new record levels.
Ulta Beauty Inc ULTA.O slumped about 8% after the
cosmetics retailer forecast annual revenue below 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.
U.S.-listed shares of China-based JD.com Inc JD.O dropped
nearly 6.7% 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. Declining issues outnumbered advancers by a 1.1-to-1 ratio
on the NYSE and by a 1.2-to-1 ratio on the Nasdaq.
The S&P 500 posted 69 new 52-week highs and no new lows,
while the Nasdaq recorded 415 new highs and 22 new lows.