* Indexes down: Dow 0.5%, S&P 500 0.7%, Nasdaq 1%

* Akamai Technologies ( AKAM ) down after announcing senior notes

offering

* Yields rally after slight dip in early trading

(Updates to afternoon levels)

By Ragini Mathur and Utkarsh Hathi

May 19 (Reuters) - Wall Street's main indexes fell on

Tuesday, pressured by technology and consumer discretionary

stocks, as mounting inflation concerns sent the benchmark

10-year Treasury yield to its highest level in more than a year.

An equities rally halted on Friday after a selloff in global

bond markets evoked fears of major central banks tightening

monetary policy, with the Middle East conflict pushing oil

prices higher and stoking inflation concerns.

Brent crude futures dipped 1.1%, but were still

above $110 a barrel after U.S. President Donald Trump said on

social media on Monday that he had held off on a planned

military strike against Iran, scheduled for Tuesday, while

negotiations continued.

The 10-year Treasury yield surged after an

earlier dip. It hit the highest level since January 2025 at

4.6653%.

"I do think tightening financial conditions driven by rising

rates is the number one driver of the recent sell-off," said

Jeff Schulze, head of economic and market strategy at

ClearBridge Investments.

"When you look at the 10-year Treasury, historically, 4.5%

has been the line in the sand that's created real anxiety and

we've clearly moved through those thresholds. If we do get a

resolution on the Middle Eastern front, yields will move lower

from here."

At 12:04 p.m. ET, the Dow Jones Industrial Average

fell 247.70 points, or 0.50%, to 49,438.42, the S&P 500

lost 47.99 points, or 0.65%, to 7,355.06 and the Nasdaq

Composite lost 254.57 points, or 0.98%, to 25,835.00.

Seven of the 11 major S&P 500 sectors were lower with

consumer discretionary and technology being

the biggest drags on the benchmark index.

The S&P 500 and the tech-heavy Nasdaq extended losses for

the third consecutive session, as rising yields pressured

technology and other growth stocks. Higher yields typically hurt

such companies because their valuations depend heavily on future

profit expectations.

Software stocks, which had helped lead gains earlier in the

session, were also caught in the broader selling pressure. The

S&P 500 software index slipped 0.3%, after gaining

roughly 5% over the previous three sessions.

Healthcare was a rare bright spot and led sector

gains by rising 1.3%.

Among other movers, cloud firm Akamai Technologies ( AKAM )

fell 4.9% after announcing a $2.6 billion convertible bond

offering.

On Wednesday, investors will focus on minutes from the U.S.

Federal Reserve's latest policy meeting for clues on how much

support there was among policymakers to pivot to a neutral

stance from an easing bias.

Markets are pricing in more than a 41% chance the central

bank will raise interest rates by at least 25 basis points in

January, according to CME's FedWatch tool.

Nvidia's ( NVDA ) earnings, also due Wednesday, are a major

test for markets. The world's most valuable company will be

closely watched for evidence AI-driven demand is strong enough

to justify elevated valuations across semiconductors.

Declining issues outnumbered advancers by a 2.49-to-1 ratio

on the NYSE and by a 1.82-to-1 ratio on the Nasdaq.

The S&P 500 posted 13 new 52-week highs and 21 new lows

while the Nasdaq Composite recorded 30 new highs and 143 new

lows.

(Reporting by Ragini Mathur and Utkarsh Hathi in Bengaluru;

Editing by Pooja Desai and Devika Syamnath)