US STOCKS-Wall Street rises on tech rebound; Tesla gains

* Tesla gains on Ark's $3,000 price target by 2025
* Kansas City Southern surges on $25 bln buyout deal
* MSCI Turkey ETF sinks after central bank ouster
* Indexes up: Dow 0.46%, S&P 1.00%, Nasdaq 1.75%

(Adds analyst comments, updates prices)
By Herbert Lash
NEW YORK, March 22 (Reuters) - U.S. stocks rallied on Monday
as technology stocks rebounded from a recent selloff sparked by
surging bond yields and Tesla jumped after a fund run by an
influential investor in the electric-car maker said its shares
could approach $3,000 by 2025.
Tesla Inc's TSLA.O 5.6% gain to $691.46 provided one of
the biggest boosts to the S&P 500 and Nasdaq after Ark Invest,
founded by star stockpicker Cathie Wood, raised its price target
on Friday using 34 inputs. Growth stocks rose 1.82% while value shares were flat.
A sharp run-up in Treasury yields since mid-February has
weighed on high-flying technology stocks that benefit from low
yields and led to a rotation into underpriced value stocks from
growth stocks that have fueled the past year's rally.
An easing off of 14-month highs in the 10-year U.S. Treasury
note's yield after it hit 1.754% last week has allowed tech
shares to bounce back, said Tom Hayes, chairman of hedge fund
Great Hill Capital LLC in New York.
"It's going to look like tech and growth is back but I think
it will be much more moderate than people think," Hayes said.
"There's a plethora of growth, growth across many sectors, and
we've seen managers bidding those (shares) up in cyclicals and
value. I think that persists over the next 18 months," he said.
The tech-heavy Nasdaq .IXIC outpaced the S&P 500 .SPX
and the Dow .DJI , which posted all-time highs last week on
bets that stimulus and vaccine rollouts would lead to a strong
rebound in the U.S. economy.
"The technology stocks are pretty beaten down and it's not
shocking to see those rebounding a little bit from their lows,"
said Jake Wujastyk, chief market analyst and founding member of
TrendSpider.
Kansas City Southern KSU.N surged 12.5% after Canadian
Pacific Railway Ltd CP.TO agreed to acquire the railroad
operator in a $25 billion cash-and-stock deal to create the
first railway spanning the United States, Mexico and Canada.
At 2:31 p.m. EDT, the Dow Jones Industrial Average .DJI
rose 148.47 points, or 0.46%, to 32,776.44, the S&P 500 .SPX
gained 38.84 points, or 0.99%, to 3,951.94 and the Nasdaq
Composite .IXIC added 231.18 points, or 1.75%, to 13,446.42.
Bank stocks .SPXBK , which have enjoyed a rally on
brightening economic prospects, dropped almost 2%.
The S&P 500 tech index .SPLRCT jumped about 2.35%, while
energy .SPNY and financials .SPSY were in the red.
The iShares MSCI Turkey ETF TUR.O sank about 20% as
President Tayyip Erdogan's decision to oust a hawkish central
bank governor sparked fears of a reversal of recent rate hikes.
Declining issues outnumbered advancing ones on the NYSE by a
1.05-to-1 ratio; on Nasdaq, a 1.10-to-1 ratio favored decliners.
The S&P 500 posted 11 new 52-week highs and no new lows; the
Nasdaq Composite recorded 87 new highs and 23 new lows.