US STOCKS-Nasdaq set to bounce back as tech stocks gain ground

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* Rally in bank stocks cool as bond yields ease
* Tech stocks gain ground after recent weakness
* GameStop builds on Monday's 40% surge
* Futures up: Dow 0.35%, S&P 0.93%, Nasdaq 2.22%

(Adds comment, details; updates prices)
By Shashank Nayar and Medha Singh
March 9 (Reuters) - Major U.S. stock indexes were headed for
a higher open on Tuesday with the Nasdaq set to rebound after a
steep selloff in the previous session, as U.S. bond yields
retreated and investors scooped up beaten-down technology
stocks.
Tesla Inc TSLA.O advanced about 6%, while Apple Inc
AAPL.O , Amazon.com Inc AMZN.O , Facebook Inc FB.O and
Microsoft Corp MSFT.O jumped about 2% each in early trading.
Signs that a $1.9 trillion coronavirus relief package was
closing in on final approval sparked a spike in yields on
Monday, pushing the tech-heavy Nasdaq to end more than 10% below
its Feb. 12 closing high that confirmed a correction.
U.S. 10-year Treasury bond yields US10YT=RR eased to 1.54%
after hovering near 13-month highs of 1.613% in the prior
session. Longer-dated yields have jumped over the last month as
investors price in faster-than-expected economic rebound and
higher inflation.
Higher yields can weigh even more on tech and growth stocks
with lofty valuations, as they threaten to erode the value of
their longer-term cash flows.
"Tech stocks are overdue for some kind of bounce after the
downfall they have had so far with most investor maintaining a
positive outlook on tech stocks in the medium to longer term,"
said Michael Sheldon, chief investment officer at RDM Financial
in Westport, Connecticut.
"Potential headwind for the market is if interest rates rise
further from this point over the short period ... since they
have risen too fast in too little time."
At 8:17 a.m. ET, Dow E-minis 1YMcv1 were up 110 points, or
0.35%, S&P 500 E-minis EScv1 were up 35.75 points, or 0.93%
and Nasdaq 100 E-minis NQcv1 were up 273.5 points, or 2.22%.
The rise in yields has accelerated a rotation from
"stay-at-home" winners to stocks primed to benefit from an
economic reopening, helping the blue-chip Dow .DJI hit an
intraday record high on Monday. The global economic outlook has brightened as vaccine
rollouts gain speed and the United States launches a vast new
stimulus package, the Organisation for Economic Cooperation and
Development said, hiking the policy forum's forecasts.
Big U.S. lenders including Bank of America Corp BAC.N ,
Citigroup Inc C.N , JPMorgan Chase & Co JPM.N and Goldman
Sachs GS.N slipped about 1% a day after the bank index
.SPXBK vaulted to a new 14-year peak.
GameStop GME.N was up 11% at $215.95, building on Monday's
rise of over 40% on the video retailer's e-commerce strategy and
speculation that small investors will pour stimulus checks into
markets.