US STOCKS-S&P 500, Dow retreat as focus turns to Fed; Nasdaq hits fresh high

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* Microsoft, Apple, Amazon at record high
* Rate-sensitive bank stocks track U.S. Treasury yields
lower
* AMC climbs on plans to reopen theaters globally
* Fed's economic projection expected at 2 p.m. ET (1800 GMT)
* Dow down 0.58%, S&P off 0.25%, Nasdaq up 0.50%

(Updates to early afternoon)
By Medha Singh and Devik Jain
June 10 (Reuters) - The S&P 500 and Dow slipped on
Wednesday, as losses in financial stocks countered a boost from
the technology sector, with focus now shifting to the Federal
Reserve's first projections on the economy since the coronavirus
outbreak.
The tech-heavy Nasdaq .IXIC , by contrast, hit a record
high for the fourth straight session, with gains for Microsoft
Corp MSFT.O , Apple Inc AAPL.O and Amazon.com Inc AMZN.O
driving a rally which has taken the index back into bull market
territory.
The Fed concludes its two-day meeting on Wednesday, with
investors expected to parse the outcome for signs on how long
the central bank plans to maintain its ultra loose policy along
with any plans to introduce yield control measures aimed at U.S.
Treasuries. The projections and the central bank's policy statement will
be released at 2 p.m. (1800 GMT), followed by a press conference
with Fed Chair Jerome Powell.
"If the Fed is going to control the yield curve, then stock
valuations make much more sense than many people believe they
do," said Brent Schutte, chief investment strategist at
Northwestern Mutual Wealth Management Co.
A surge of more than 45% in the three main U.S. stock
indexes, since falling sharply in March, has been underpinned by
unprecedented monetary and fiscal stimulus measures and
resulting hopes of an economic rebound.
The benchmark S&P 500 .SPX is about 5.5% below its
all-time high.
Any hint that the Fed could rein in stimulus could derail
the stock market's recovery in the past month.
The global economy will suffer the biggest peacetime
downturn in a century before it emerges next year from a
recession, the Organisation for Economic Co-operation and
Development said on Wednesday. "Markets are climbing a wall of worry, but that wall has a
lot of holes in it," said Dan Genter, president and chief
executive officer of RNC Capital Management LLC, in Los Angeles.
At 1:02 p.m. ET, the Dow Jones Industrial Average .DJI was
down 157.81 points, or 0.58%, at 27,114.49, the S&P 500 .SPX
was down 8.03 points, or 0.25%, at 3,199.15. The Nasdaq
Composite .IXIC was up 50.19 points, or 0.50%, at 10,003.95.
Rate-sensitive financial stocks .SPSY slipped 2.1%,
tracking a fall in U.S. Treasury yields. The energy sector
.SPNY shed 3.3%, as oil prices weakened after a rise in U.S.
crude inventories raised oversupply concerns. O/R
The S&P 1500 airlines index .SPCOMAIR slumped 6.9% as
J.P.Morgan analysts said the current pace of rise in U.S.
airline stocks cannot be maintained for much longer.
Starbucks Corp SBUX.O slipped 4.8% as it expected
current-quarter operating income to plunge by up to $2.2
billion, as well as sales declines for the rest of the year.
AMC Entertainment Holdings Inc AMC.N jumped 5.2% after
saying it expects to reopen its movie theaters globally in July.
Declining issues outnumbered advancers for a 2.78-to-1 ratio
on the NYSE and a 1.87-to-1 ratio on the Nasdaq.
The S&P index recorded 13 new 52-week highs and no new low,
while the Nasdaq recorded 75 new highs and no new low.