US STOCKS-Wall St drops as tech stocks hit by spike in yields

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* Tech stocks fall as 10-year yields touch 14-month high
* Banks, industrial stocks gain
* Indexes down: Dow 0.34%, S&P 0.53%, Nasdaq 0.82%

(Adds comment, details; updates prices)
By Devik Jain and Medha Singh
March 30 (Reuters) - Wall Street's main indexes slipped on
Tuesday as investors pulled out of heavyweight tech-related
stocks and flocked to undervalued banks and industrial stocks
amid a rise in U.S. bond yields.
Apple Inc AAPL.O , Microsoft Corp MSFT.O , Amazon.com
AMZN.O and Broadcom Inc AVGO.O dropped between 0.9% and
2.7%, as U.S. 10-year Treasury yield US10YT=RR hit a 14-month
high. US/
The Nasdaq .IXIC is set for its first monthly loss since
November as a rise in yields since last month has particularly
hit tech stocks which often have a low-rate environment heavily
baked into their high valuations.
The index is still about 7% below its all-time closing high,
while bets on a speedy economic recovery driven by vaccine
distributions and unprecedented stimulus has helped the S&P 500
and the Dow notch record closing highs last week.
"We are going through a period where people are adjusting to
slightly higher rates," said Jon Maier, chief investment officer
at Global X ETFs in New York.
"An infrastructure plan would benefit the sectors that were
typically locked during the pandemic. Materials, industrials are
the areas that would benefit from additional spending."
On Wednesday, President Joe Biden will unveil more details
about the first stage of his infrastructure plan, which could be
worth as much as $4 trillion. Economy-linked financials .SPSY and industrials .SPLRCI
were the only sectors in positive territory, while technology
.SPLRCT and utilities .SPLRCU posted the steepest declines.
Bank stocks .SPXBK rebounded 1.7% as investors took heart
from signs that the impact from the fall of a U.S. hedge fund
didn't ripple out to broader markets.
"It's a transitional market ... we would see this broadening
of the market continue throughout this year," said John Traynor,
chief investment officer at People's United Advisors.
At 10:07 a.m. ET, the Dow Jones Industrial Average .DJI
fell 111.33 points, or 0.34% , to 33,060.04, the S&P 500 .SPX
lost 20.71 points, or 0.53%, to 3,949.97 and the Nasdaq
Composite .IXIC lost 107.32 points, or 0.82%, to 12,952.33.
Banks and industrial stocks including JPMorgan Chase & Co
JPM.N , Morgan Stanley MS.N and Boeing Co BA.N added
between 0.2% and 0.7%.
Bitcoin prices BTC=BTSP gained about 2.6% after Reuters
reported that PayPal Holdings Inc PYPL.O is set to announce
that it has started allowing U.S. consumers to use their
cryptocurrency holdings to pay at millions of its online
merchants globally. PayPal gained about 1%.
Declining issues outnumbered advancers by a 1.2-to-1 ratio
on the NYSE and by a 1.6-to-1 ratio on the Nasdaq.
The S&P 500 posted 17 new 52-week highs and no new low,
while the Nasdaq recorded 33 new highs and 61 new lows.