US STOCKS-Recovery rally drives S&P 500, Dow to new peaks

* Bank, energy stocks gain on prospects of more stimulus
* Crypto stocks jump as Bitcoin briefly surges past $50,000
* Indexes: Dow up 0.3%, S&P up 0.1%, Nasdaq slips 0.2%

(Updates to mid-afternoon trading, changes byline, adds NEW
YORK to dateline)
By April Joyner
NEW YORK, Feb 16 (Reuters) - The S&P 500 and the Dow Jones
Industrial Average hit all-time highs on Tuesday as cyclical
sectors gained on the prospect of more fiscal aid to lift the
U.S. economy from a coronavirus-driven slump.
The Nasdaq, however, dipped as technology stocks moved
lower.
Sectors poised to benefit the most from a reopening economy,
including energy .SPNY and financials .SPSY , had the biggest
gains. President Joe Biden has pitched a $1.9 trillion pandemic
relief bill and is pressing Congress to pass it in the coming
weeks in order to get $1,400 stimulus checks to Americans and
bolster unemployment payments. The S&P 500 banking index .SPXBK jumped 3.2% as the yield
on 10-year U.S. Treasuries US10YT=RR hit their highest since
February 2020. US/
"The reflation trade continues to push equity markets across
all industries and multi-caps ... and this rally could continue
in the near-term," said Tony Bedikian, head of global markets at
Citizens Bank in Boston.
Conversely, utilities .SPLRCU and real estate .SPRLCR
posted the biggest percentage losses among S&P 500 sectors, and
technology stocks .SPLRCT also slipped. Utilities and real
estate, because of their steady earnings and high dividend
yields, are often considered bond proxies and tend to move in
tandem with Treasuries.
The technology sector includes many stocks with high
earnings multiples, which may also come under pressure with
rising yields, according to some market analysts.
The S&P 500 backed off from session highs as yields rose on
Tuesday, which reflected investor worries about the day's surge
in bond yields, said Robert Phipps, director at Per Stirling
Capital Management in Austin, Texas. Equities would likely
tolerate a gradual ascent in rates, but a sprint higher could
create turbulence, in his view.
"Even though interest rates are still really low, the stock
market is going to be very, very sensitive to changes," he said.
The Dow Jones Industrial Average .DJI rose 97.56 points,
or 0.31%, to 31,555.96, the S&P 500 .SPX gained 3.79 points,
or 0.10%, to 3,938.62 and the Nasdaq Composite .IXIC dropped
25.65 points, or 0.18%, to 14,069.83.
A sharp drop in new coronavirus infections, progress in
vaccinations and a stronger-than-expected fourth-quarter
earnings season have reinforced hopes of a quick business
recovery this year.
This week's earnings reports from Hilton Worldwide Holdings
Inc HLT.N , Hyatt Hotels Corp H.N , Marriott International Inc
MAR.O , Norwegian Cruise Lines NCLH.N and TripAdvisor Inc
TRIP.O will be closely watched for signs of a pickup in global
travel demand. Shares of cryptocurrency and blockchain-related firms
including Silvergate Capital Corp SI.N , Riot Blockchain
RIOT.O and Marathon Patent Group MARA.O jumped between 8%
and 21% as bitcoin BTC=BTSP briefly climbed past $50,000.
Investors will also focus this week on the minutes from the
Federal Reserve's January meeting, where it reaffirmed its
pledge to maintain a dovish policy stance.
Advancing issues outnumbered declining ones on the NYSE by a
1.04-to-1 ratio; on Nasdaq, a 1.17-to-1 ratio favored advancers.
The S&P 500 posted 75 new 52-week highs and no new lows; the
Nasdaq Composite recorded 363 new highs and nine new lows.