US STOCKS-S&P 500, Nasdaq fall as high-flying tech stocks slide

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* U.S. private payrolls rise less than expected in Feb
* UWM Holdings jumps in GameStop-style short squeeze
* Financials, energy and industrial outshine among major
sectors
* Indexes down: Dow 0.1%, S&P 0.6%, Nasdaq 1.1%

(Updates to market open)
By Shashank Nayar and Medha Singh
March 3 (Reuters) - Wall Street's major indexes dropped on
Wednesday, weighed down by technology stocks as investors
unwound positions in high-flying shares and pivoted to sectors
that are likely to benefit from an economic reopening on hopes
of swift vaccinations.
Microsoft Corp MSFT.O , Apple Inc AAPL.O and Amazon.com
Inc AMZN.O dropped 0.9% and 1.3%, weighing the most on the S&P
500. Financials .SPSY and energy .SPNY jumped over 1%, while
industrials .SPLRCI also edged up. The remaining eight S&P
sectors declined.
The Russell 1000 value index .RLV , which is heavily
weighted toward cyclical sectors, rose 0.4%, while its growth
index .RLG , comprising large tech companies, fell 0.8%.
Data showed U.S. private employers hired fewer workers than
expected in February, suggesting the labor market was struggling
to regain speed despite the nation's improving public health
picture. A more comprehensive monthly jobs report is due on Friday.
The report "is a reminder that we're still battling the
effects of the pandemic," said Mike Loewengart, managing
director of investment strategy at E*TRADE Financial.
"In the backdrop we have the promise of a widely vaccinated
population in pretty short order, stimulus relief making moves
in Congress, and the Fed's ultra-accommodative stance."
The U.S. 10-year Treasury yield US10YT=RR ticked up to
1.48%, pressuring areas of the market with high valuations. It
was still off last week's peak of above 1.61%.
Earlier, S&P futures had risen as much as 0.8% as President
Joe Biden said that the United States will have enough COVID-19
vaccine for every American adult by the end of May. Texas also sweepingly rolled back coronavirus restrictions
on Tuesday, lifting a mask mandate and saying most businesses
may open at full capacity next week as many U.S. states record a
sharp decline in new infections and hospitalization.
The U.S. Senate is expected to take up Biden's $1.9 trillion
coronavirus relief package on Wednesday, with Democrats aiming
to get it signed into law before March 14, when some current
jobless benefits expire. At 10:07 a.m. ET, the Dow Jones Industrial Average .DJI
fell 26.45 points, or 0.08%, to 31,365.07, the S&P 500 .SPX
lost 22.69 points, or 0.59%, to 3,847.60 and the Nasdaq
Composite .IXIC lost 152.25 points, or 1.14%, to 13,206.54.
Exxon Mobil Corp XOM.N , ahead of a closely watched
investor meeting, rose 0.4% after the company said it would grow
its dividend and cut debt through 2025. Shares in mortgage lender UWM Holdings Corp UWMC.N jumped
about 9% as the new targets of a short-squeeze gain popularity
on internet message boards. Another report showed U.S. services industry activity
unexpectedly slowed in February amid winter storms while a
measure of prices paid by companies for inputs surged to the
highest level in nearly 12-1/2 years. Declining issues outnumbered advancers by a 1.3-to-1 ratio
on the NYSE and by a 1.5-to-1 ratio on the Nasdaq.
The S&P 500 posted 23 new 52-week highs and no new low,
while the Nasdaq recorded 112 new highs and 47 new lows.