US STOCKS-S&P 500 rises in choppy trading ahead of Powell speech

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* Weekly jobless claims rise less than expected
* Powell to address WSJ conference at noon ET
* Nasdaq closes in on confirming correction territory
* Dow up 0.14%, S&P up 0.06%, Nasdaq down 0.31%

(Adds comment, details; updates prices)
By Shashank Nayar and Medha Singh
March 4 (Reuters) - The S&P 500 firmed on Thursday after two
days of losses while sentiment was fragile ahead of remarks from
Federal Reserve Chair Jerome Powell on rising bond yields.
The Nasdaq nearly wiped out all of its year-to-date gains
and was down about 8% from its record closing high on Feb. 12. A
10% decline would confirm a correction territory.
In contrast, the Dow has fallen about 1.8% from its all-time
closing peak on Feb. 24, while the S&P 500 is down 2.7% from its
record close on Feb. 12.
"There is a fork in the road for markets which is best
served with a correction ... which is what we are seeing now as
concerns of lofty tech valuations and elevated yield levels
affect sentiment," said Jason Ader, chief executive officer at
SpringOwl Asset Management.
Latest data showed the number of Americans filing for
jobless benefits rose last week, likely boosted by brutal winter
storms in the densely populated South, though the labor market
outlook is improving amid declining new COVID-19 cases.
The crucial monthly payrolls report is expected on Friday.
Wall Street's main indexes fell in the past two sessions as
a spike in U.S. bond yields pressured high-flying tech stocks
while economy-linked stocks outperformed on hopes of a new round
of fiscal aid and vaccinations.
The energy sector .SPNY enjoyed a 1% jump on the back of
higher oil prices. Tesla Inc TSLA.O and PayPal Holdings Inc
PYPL.O were among the top drags on the S&P 500. O/R
Powell is set to speak at a Wall Street Journal conference
at 12:05 p.m. ET (1705 GMT) where his comments will be
scrutinized for any hints of concern about last week's jump in
bond yields, in what will be his last outing before the Fed's
March 16-17 policy meeting. Ahead of Powell's remarks, the 10-year Treasury yields
US10YT=RR were at 1.474% but they held below last week's
one-year high of 1.614%.
Tech stocks are particularly sensitive to rising yields
because their value rests heavily on future earnings, which are
discounted more deeply when bond returns go up.
At 11:29 a.m. ET, the Dow Jones Industrial Average .DJI
rose 43.10 points, or 0.14%, to 31,313.19, the S&P 500 .SPX
gained 1.98 points, or 0.06%, to 3,821.91 and the Nasdaq
Composite .IXIC lost 40.35 points, or 0.31%, to 12,957.36.
Democrats in the U.S. Senate said on Thursday they had
modified President Joe Biden's $1.9 trillion coronavirus relief
package to steer more aid to smaller U.S. states as they
prepared to begin a lengthy debate on the bill. Disney's DIS.N shares dropped 1.4% after the company
announced it will close at least 60 Disney retail stores in
North America this year and about 20% of its worldwide total, as
it revamps its digital shopping platforms to focus on
e-commerce. Declining issues outnumbered advancers by a 1.4-to-1 ratio
on the NYSE and by a 2.9-to-1 ratio on the Nasdaq.
The S&P 500 posted 26 new 52-week highs and no new low,
while the Nasdaq recorded 180 new highs and 237 new lows.