US STOCKS-Dow at record high, stocks gain as inflation fears recede

* Koss doubles in value; GameStop in volatile trading
* Yields lower after 10-year Treasury note auction
* Indexes up: Dow 1.67%, S&P 0.88%, Nasdaq 0.17%

(Adds House vote, comments)
By Karen Pierog and Herbert Lash
March 10 (Reuters) - The S&P 500 rose on Wednesday and the
blue-chip Dow hit a record high after tepid consumer prices data
for February calmed inflation worries and legislators gave final
approval to one of the largest economic stimulus measures in
U.S. history.
A rotation into sectors such as energy and financials
continued, both in small- and large-cap stocks, as investors bet
on consumer spending when the U.S. economy reopens and sold the
big tech names that have fueled the rally since last March.
Accelerated coronavirus vaccine rollouts and a monster
fiscal stimulus on the horizon have raised bets on higher
inflation, triggering a spike in Treasury yields that pushed the
Nasdaq down as much as 12% from its Feb. 12 record close.
Meanwhile, Wednesday's $38 billion 10-year Treasury note
US10YT=RR auction, which was met with modest demand, pushed
the benchmark yield to a session low of 1.506%. The "market seemed nonplussed and Treasuries rallied but
that didn't seem to give a boost to tech (stocks)," said Mark
Luschini, chief investment strategist at Janney Montgomery
Scott.
Rising yields had weighed on technology shares that rely on
cheap funding for growth.
The U.S. Labor Department released data that indicated the
core consumer prices index, which excludes volatile items such
as food and energy, rose less than expected last month.
Investors are shifting funds from tech stocks with lofty
valuations to other groups, such as energy and financials, that
are undervalued and more of a play on an improving economy in a
post-COVID world than big tech is, said Peter Tuz, president of
Chase Investment Counsel in Charlottesville, Virginia.
“It is occurring in fits and starts,” Tuz said. “That is
essentially the overwhelming theme in the market right now and
it probably will continue until these things run their course.”
The move away from Apple Inc AAPL.O , Amazon.com Inc
AMZN.O , Facebook FB.O , Tesla TSLA.O and Microsoft Corp
MFST.O , all down on the day, included a rotation into
small-cap stocks .SPCY , which rose 2.0%, or double the gains
of the S&P 500.
Also helping lift stocks are analysts who have raised their
estimates for U.S. corporate profitability this year following
surprisingly strong fourth-quarter earnings and growing optimism
about an economic rebound. By 2:41 p.m. ET (1941 GMT), the Dow Jones Industrial Average
.DJI rose 531.85 points, or 1.67%, to 32,364.59, the S&P 500
.SPX gained 33.96 points, or 0.88%, to 3,909.4 and the Nasdaq
Composite .IXIC added 22.29 points, or 0.17%, to 13,096.11.
The Nasdaq extended gains in choppy trade after logging its
best one-day percentage jump in four months on Tuesday.
The sweeping $1.9 trillion COVID-19 relief bill passed by
the U.S. House of Representatives gave President Joe Biden his
first major victory in office. Some of the $1,400 in payments heading to most Americans
could end up in the stock market and could provide a boost for
GameStop GME.N and other stocks popular among retail investors
active in online social media forums. Trading in GameStop was volatile with the stock at times
poised to set the videogame retailer on track for its longest
streak of daily gains in six months and extending a rally that
has already doubled the company's market value. Among other "meme" stocks, Koss Corp KOSS.O climbed 49%.
Advancing issues outnumbered declining ones on the NYSE by a
2.86-to-1 ratio; on Nasdaq, a 1.67-to-1 ratio favored advancers.
The S&P 500 posted 47 new 52-week highs and no new lows; the
Nasdaq Composite recorded 283 new highs and 19 new lows.