US STOCKS-S&P 500, Nasdaq rise as megacap stocks bounce; Boeing weighs on Dow

* Boeing falls on new hurdle in 737 MAX electrical grounding
issue
* U.S. private payrolls increase solidly in April - ADP
* Dow down 0.14%, S&P up 0.13%, Nasdaq up 0.25%

(Updates prices to open)
By Shreyashi Sanyal and Sruthi Shankar
May 5 (Reuters) - The S&P 500 and the Nasdaq rose on
Wednesday as megacap stocks bounced from a steep selloff in the
previous session and private jobs rose in April, but a decline
in Boeing shares weighed on the Dow.
Technology-related companies including Apple Inc AAPL.O ,
Microsoft Corp MSFT.O , Amazon.com Inc AMZN.O , Facebook Inc
FB.O and Alphabet Inc GOOGL.O rose between 0.2% and 1.3%.
Six of the 11 major S&P 500 sectors rose in early trading,
with a 2.8% jump in energy stocks .SPNY leading the advance.
The S&P 500 technology sector .SPLRCT gained 0.5%.
Defensive utilities .SPLRCU and real estate .SPLRCR ,
fell more than 1% each, leading sectoral declines.
"The reopening optimism is back driving the markets today,
with investors realizing that the selloff yesterday was probably
a bit overdone," said Fiona Cincotta, senior financial markets
analyst at City Index in London.
The S&P 500 value index .IVX has risen 15.1% so far in the
year, while its growth counterpart .IGX is up 7.1%.
Strong economic data and earnings pushed the S&P 500 .SPX
and Nasdaq .IXIC indexes to record high last week, but markets
have wobbled amid concerns about rising inflation and
potentially higher U.S. interest rates.
U.S. Treasury Secretary Janet Yellen said on Tuesday she
sees no inflation problem brewing, downplaying earlier comments
that rate hikes may be needed to stop the economy overheating as
President Joe Biden's spending plans boost growth. "There is the thought in the market that rate hike will be
coming, but it's still not quite on the radar just yet. Powell
has worked very hard to drum that message home," City Index's
Cincotta said.
The ADP National Employment Report showed U.S. private
payrolls increased in April as companies rushed to boost
production amid a surge in demand, powered by massive government
aid and rising vaccinations against COVID-19. A more comprehensive reading in the form of the Labor
Department's non-farm payrolls data is due on Friday.
Boeing Co BA.N fell 2.3%, dragging down the Dow Jones
Industrial Average .DJI , after U.S. air safety officials asked
it to supply fresh analysis and documentation showing 737 MAX
subsystems would not be affected by electrical grounding issues.
At 10:33 a.m. ET, the Dow was down 49.24 points, or 0.14%,
at 34,083.79, the S&P 500 .SPX was up 5.22 points, or 0.13%,
at 4,169.88 and the Nasdaq Composite .IXIC was up 34.08
points, or 0.25%, at 13,667.58.
T-Mobile US Inc TMUS.O gained 3.2% as it raised its
full-year postpaid subscriber net additions forecast.
Uber Technologies Inc UBER.N is set to report earnings
after markets close on Wednesday.
Declining issues outnumbered advancers for a 1.11-to-1 ratio
on the NYSE and for a 1.32-to-1 ratio on the Nasdaq.
The S&P index recorded 75 new 52-week highs and no new low,
while the Nasdaq recorded 73 new highs and 31 new lows.