US STOCKS-S&P 500, Nasdaq weighed down by spike in bond yields

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* Ulta Beauty slumps as revenue forecast disappoints
* Benchmark yields approach one-year highs
* Three major indexes set for best week in six
* Indexes: Dow up 0.48%, S&P down 0.22%, Nasdaq drops 1.09%

(Updates to open)
By Shashank Nayar and Medha Singh
March 12 (Reuters) - The S&P 500 slipped on Friday after
hitting an all-time high in the prior session, as a spike in
U.S. bond yields revived inflation worries and dented appetite
for high-growth stocks.
The tech-heavy Nasdaq tumbled 1.1% after rebounding more
than 6% over the past three sessions, while the blue-chip Dow,
on the other hand, was closing in on its fifth consecutive
record high.
Wall Street's main indexes are set for their best week in
six after one of the largest U.S. fiscal stimulus bills was
signed into law and data reinforced views that the economy was
on the path to a recovery.
A consistent rise in U.S. bond yields has raised fears of a
sudden tapering of monetary stimulus, pressuring the main U.S.
stock indexes in recent weeks.
The yield on the benchmark 10-year notes US10YT=RR rose
back above 1.60% on Friday to approach the one-year highs
touched last week. US/
"The risks of inflation picking up have increased
significantly due to a jump in money supply through stimulus and
the anticipated demand that we might see as the economy slowly
unlocks," said Jonathan Bell, chief investment officer at
Stanhope Capital in London.
Speedy vaccine distribution and more fiscal aid have also
added to concerns of higher inflation despite assurances from
the Federal Reserve to maintain an accommodative policy. All
eyes will now be on the central bank's policy meeting next week
for further cues on inflation.
U.S. consumer sentiment improved more than expected in
March, hitting its highest level in a year, a survey by the
University of Michigan showed on Friday.
At 10:10 a.m. ET, the Dow Jones Industrial Average .DJI
rose 155.74 points, or 0.48%, to 32,641.33, the S&P 500 .SPX
lost 8.83 points, or 0.22 %, to 3,930.51 and the Nasdaq
Composite .IXIC lost 146.37 points, or 1.09 %, to 13,252.31.
The Nasdaq has been particularly hit by the sell-off in
recent weeks and confirmed a correction at the start of the week
as investors swapped richly valued technology stocks with those
of energy, mining and industrials companies that are poised to
benefit more from an economic rebound.
The yield-sensitive group of Facebook Inc FB.O Apple Inc
AAPL.O , Amazon.com Inc AMZN.O , Netflix Inc NFLX.O ,
Google-parent Alphabet Inc GOOGL.O , Tesla Inc TSLA.O and
Microsoft Corp MSFT.O were down between 1% and 3%.
Tech .SPLRCT , communication services .SPLRCL and
consumer discretionary .SPLRCD indexes, which house these
mega-cap stocks, slipped the most among major S&P sectors.
Banks .SPXBK jumped about 2%, while financials .SPSY ,
industrials .SPLRCI clinched new record levels.
Ulta Beauty Inc ULTA.O slumped about 11% after the
cosmetics retailer forecast annual revenue below estimates, as
demand for make-up products were under pressure due to extended
work-from-home policies. The company also named President Dave Kimbell as its new
chief executive officer.
U.S.-listed shares of China-based JD.com Inc JD.O dropped
nearly 6% after three sources said it is in talks to buy part or
all of a stake in brokerage Sinolink Securities worth at least
$1.5 billion. Declining issues matched advancers on the NYSE by a 1.5-to-1
ratio on the Nasdaq.
The S&P 500 posted 54 new 52-week highs and no new low,
while the Nasdaq recorded 347 new highs and 10 new lows.