GLOBAL MARKETS-Nasdaq falls in late trading; dollar off highs

* Dow, S&P 500 up, Nasdaq slips
* Dollar eases from 2-week high
* U.S. Treasury yields off earlier highs

(Updates with afternoon prices, crude oil settlements)
By Caroline Valetkevitch
NEW YORK, May 5 (Reuters) - The Nasdaq fell in afternoon
trading on Wednesday, extending the previous session's sell-off,
while the U.S. dollar eased off a more than two-week high hit
earlier in the day.
Amazon.com AMZN.O and Microsoft MSFT.O were the biggest
drags on the Nasdaq, while the S&P 500 was flat as gains in
energy and other economically sensitive shares provided some
support.
The S&P 500 energy index .SPNY last up more than 3%.
The Nasdaq fell sharply on Tuesday after U.S. Treasury
Secretary Janet Yellen said that rate hikes may be needed to
stop the economy from overheating. Yellen later said a near-term
interest rate hike was not something she was "predicting or
recommending."
Investors across markets were also trying to position ahead
of Friday's U.S. monthly jobs report.
Tony Rodriguez, head of fixed income strategy at Nuveen,
said the Treasury market's real focus will be Friday's labor
report and the potential that an unexpectedly much higher or
lower number of job gains could move the market.
"I think it would have to be closer to 1.2 million (in jobs
gains) to have the market really feel like growth is
accelerating at a pace that's a little above what people
expected coming into this," Rodriguez said.
The Dow Jones Industrial Average .DJI rose 117.09 points,
or 0.34%, to 34,250.12, the S&P 500 .SPX gained 5.52 points,
or 0.13%, to 4,170.18 and the Nasdaq Composite .IXIC dropped
43.54 points, or 0.32%, to 13,589.96.
The pan-European STOXX 600 index .STOXX rose 1.82% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
0.30%.
Stock indexes in Europe were boosted by upbeat earnings and
business activity.
Data showed euro zone business activity quickened last
month, while the services industry returned to growth.
India's Nifty 50 .NSEI was 0.8% higher, its best day in a
week, as the central bank rolled out a series of measures to
support the coronavirus-ravaged economy, including allowing
certain small borrowers more time to repay loans. The dollar was near flat after moving off more than two-week
highs following some softer-than-expected U.S. economic data.
U.S. private payrolls rose by the most in seven months in
April, ADP data showed on Wednesday, as companies boosted
production to meet a surge in demand amid massive government
spending and rising COVID-19 vaccinations. But the 742,000
private jobs created fell short of the 800,000 jobs expected by
economists in a Reuters poll. A separate report showed services industry activity eased in
April from a record level in March, likely due to shortages of
inputs amid a burst of demand, data from the Institute for
Supply Management showed.
The dollar index =USD rose 0.045%, with the euro EUR=
down 0.13% to $1.1997.
In the U.S. Treasury market, yields backpedaled from earlier
highs. An announcement of second quarter auction sizes and
economic data did not move the market out of its holding
pattern. The benchmark 10-year yield US10YT=RR , which hit a session
high of 1.626%, was last up less than a basis point at 1.582%,
holding below a 14-month high of 1.776% reached on March 30.
In commodities, Brent crude LCOc1 rose 8 cents to settle
at $68.96 a barrel, while U.S. West Texas Intermediate (WTI)
crude CLc1 eased 6 cents to settle at $65.63.
Spot gold XAU= added 0.4% to $1,784.69 an ounce. U.S. gold
futures GCc1 gained 0.29% to $1,784.10 an ounce.

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