US STOCKS-Stimulus hopes drive Dow to closing peak but interest rate worries loom

* Bank, energy stocks gain on prospects of more stimulus
* Utilities, homebuilders slide as Treasury yields jump
* Crypto stocks climb as bitcoin briefly surges past $50,000

(Updates to market close)
By April Joyner
NEW YORK, Feb 16 (Reuters) - The Dow Jones Industrial
Average notched a record closing high on Tuesday as cyclical
sectors gained on the prospect of more fiscal aid to lift the
U.S. economy from a coronavirus-driven slump.
The Nasdaq, however, dipped as technology stocks moved
lower, while concerns over rising interest rates kept the
benchmark S&P 500 .SPX little changed.
Sectors poised to benefit the most from a reopening economy,
including energy .SPNY and financials .SPSY , had the biggest
percentage gains. President Joe Biden has pitched a $1.9
trillion pandemic relief bill and is pressing Congress to pass
it in the coming weeks in order to get $1,400 stimulus checks to
Americans and bolster unemployment payments. The S&P 500 banking index .SPXBK climbed as the yield on
10-year U.S. Treasuries US10YT=RR hit its highest since
February 2020. US/
"We came into this week with a positive perspective on the
Biden administration's attempt to deliver a sizeable package,"
said Quincy Krosby, chief market strategist at Prudential
Financial in Newark, New Jersey. "Markets have greeted that with
positive moves."
Conversely, utilities .SPLRCU and real estate .SPRLCR
were among the S&P 500 sectors with the biggest percentage
losses. Utilities and real estate, because of their steady
earnings and high dividend yields, are often considered bond
proxies and tend to move in tandem with Treasuries. Shares of
homebuilders, which are rate-sensitive, also fell.
Technology stocks .SPLRCT slipped as well. That sector
includes many stocks with high earnings multiples, which may
also come under pressure with rising yields, according to some
market analysts.
The S&P 500 backed off from session highs as yields rose on
Tuesday, which reflected investor worries about the day's surge
in bond yields, said Robert Phipps, director at Per Stirling
Capital Management in Austin, Texas. Equities would likely
tolerate a gradual ascent in rates, but a sprint higher could
create turbulence, in his view.
"Even though interest rates are still really low, the stock
market is going to be very, very sensitive to changes," he said.
Unofficially, the Dow Jones Industrial Average .DJI rose
61.52 points, or 0.2%, to 31,519.92, the S&P 500 .SPX lost
2.38 points, or 0.06%, to 3,932.45 and the Nasdaq Composite
.IXIC dropped 47.98 points, or 0.34%, to 14,047.50.
A sharp drop in new coronavirus infections, progress in
vaccinations and a stronger-than-expected fourth-quarter
earnings season have reinforced hopes of a quick business
recovery this year.
This week's earnings reports from Hilton Worldwide Holdings
Inc HLT.N , Hyatt Hotels Corp H.N , Marriott International Inc
MAR.O , Norwegian Cruise Lines NCLH.N and TripAdvisor Inc
TRIP.O will be closely watched for signs of a pickup in global
travel demand. Shares of cryptocurrency and blockchain-related firms
including Silvergate Capital Corp SI.N , Riot Blockchain
RIOT.O and Marathon Patent Group MARA.O surged as bitcoin
BTC=BTSP briefly climbed past $50,000. Investors will also focus this week on the minutes from the
Federal Reserve's January meeting, where it reaffirmed its
pledge to maintain a dovish policy stance.