US STOCKS-Tech weakness weighs on S&P 500, Nasdaq

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* Tech, healthcare stocks slip
* Banks stocks surge as investors search for value
* Fed's Beige Book expected later in the day
* Indexes mixed: Dow up 0.67%, S&P off 0.08%, Nasdaq drops
1.25%

(Adds quote, details; updates prices)
By Medha Singh and Devik Jain
May 27 (Reuters) - A selloff in technology stocks dragged on
the S&P 500 and Nasdaq on Wednesday, with investors also
cautious about brewing U.S.-China tensions at a time when
policymakers are attempting to revive the global economy from a
coronavirus-driven slump.
Index heavyweights Amazon.com AMZN.O , Microsoft Corp
MSFT.O and Facebook Inc FB.O , which have led a recent rally,
were down more than 2%, while healthcare .SPXHC and technology
.SPLRCT - outperformers in the coronavirus-led market slump -
were among the S&P 500 sectors in the red.
Five of the 11 major S&P sectors were higher, with
financials .SPSY leading gains. The bank index .SPSY jumped
4.4% but was still down more than 20% this year.
"The core theme is a rotation out of the high flying tech
stocks and a move into laggard sectors which have
underperformed, like banks," said Thomas Hayes, managing member
at Great Hill Capital LLC in New York.
"In the last couple of days, the reopening and the recovery
have started to feel real for people and that goes a long way
for confidence, both at the consumer level and in market
sentiment as well."
The easing of lockdowns, optimism about an eventual COVID-19
vaccine and massive U.S. stimulus have powered a recent stock
market rally, helping the S&P 500 .SPX end on Tuesday at its
highest level since early March and just short of the
psychological level of 3,000 points.
However, Sino-U.S. worries have kept a lid on further gains.
President Donald Trump said on Tuesday that Washington would
announce its response to China's planned national security
legislation on Hong Kong before the end of the week.
At 11:27 a.m. ET, the Dow Jones Industrial Average .DJI
was up 167.18 points, or 0.67%, at 25,162.29. The S&P 500 .SPX
was down 2.45 points, or 0.08%, at 2,989.32 and the Nasdaq
Composite .IXIC was down 116.58 points, or 1.25%, at 9,223.64.
Facebook Inc FB.O and Twitter Inc TWTR.N slipped 3.2%
and 4.7%, respectively, after Trump threatened to shutter social
media companies a day after Twitter prompted readers to fact
check his tweets.
Investor attention will now turn to the U.S. Federal
Reserve's Beige Book of economic condition scheduled for release
at 2 p.m. ET (1800 GMT).
Advancing issues outnumbered decliners by a 1.44-to-1 ratio
on the NYSE and matched them on the Nasdaq.
The S&P index recorded fourth new 52-week highs and no new
lows, while the Nasdaq recorded 28 new highs and seven new lows.