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Amedisys ( AMED ) gains after extending UnitedHealth ( UNH ) merger

deadline

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All three main indexes set for weekly gains

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Indexes down: Dow 0.76%, S&P 500 1.16%, Nasdaq 1.77%

(Updates to late-afternoon)

By Medha Singh and Purvi Agarwal

Dec 27 (Reuters) - Tech and growth stocks dragged Wall

Street's main indexes lower on Friday, at the end of an upbeat

holiday-shortened week that was driven by expectations around a

traditionally strong period for markets.

Yields on some U.S. Treasury notes were higher on the day,

with the ones on the benchmark 10-year note hovering

near an over seven-month high they hit on Thursday. The yields

on the benchmark 10-year note were last at 4.587%.

Rate-sensitive growth stocks dropped with Nvidia ( NVDA )

down 3% and Tesla off by 3.8%, while Microsoft ( MSFT )

shed 2%.

Ten of the 11 major S&P sectors, including information

technology and consumer discretionary fell

the most, down about 2% and 1.9%, after powering most of the

broader market's gains in 2024.

"Tech, which has had a tremendous run, is starting to pull

back. It is the beginning of a healthy correction that will get

focused in on over the next four to eight weeks as we switch

administrations," said Jay Woods, Chief Global Strategist at

Freedom Capital Markets.

At 10:57 a.m. the Dow Jones Industrial Average fell

329.50 points, or 0.76%, to 42,996.30, the S&P 500 lost

70.22 points, or 1.16%, to 5,967.60 and the Nasdaq Composite

lost 356.63 points, or 1.77%, to 19,665.01.

As of Thursday's close, the S&P 500 had recovered

most of last week's losses that stemmed from the U.S. Federal

Reserve projecting fewer interest rate cuts in 2025 and hurting

risk appetite.

All three indexes are still set for weekly gains, with the

benchmark index now about 2.3% below its all-time high of

6,099.97 points clinched on Dec. 6.

With three sessions left to close out the year, markets are

in the stock-buying season called the "Santa Claus rally" - the

last five sessions of December and the first two of January.

Since 1969, the S&P 500 has climbed 1.3% on average in the

seven-day trading period, according to the Stock Trader's

Almanac.

U.S. equities have broadly extended their gains from a

stellar November, when Donald Trump won the U.S. presidential

election, as hopes of pro-business policies under the incoming

administration stoked optimism.

Trading volumes in this holiday-shortened week have been

below the average of the last six months and are likely to

remain subdued until Jan. 6. The next major focus for markets

will be the December employments report due on Jan. 10.

Among individual movers, Amedisys ( AMED ) gained 4% after

the home health service provider and insurer UnitedHealth ( UNH )

extended the deadline to close their $3.3 billion

merger.

Declining issues outnumbered advancers by a 3.01-to-1 ratio

on the NYSE and by a 3-to-1 ratio on the Nasdaq.

The S&P 500 posted two new 52-week highs and two new lows,

while the Nasdaq Composite recorded 44 new highs and 35 new

lows.

(Reporting by Medha Singh and Purvi Agarwal in Bengaluru;

Editing by Devika Syamnath)