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* Major U.S. indexes down in early trade; Nasdaq off >1%

* Tech weakest major S&P sector; energy, financials rise

* Euro STOXX 600 index up ~0.5%

* Dollar up; gold dips, crude rallies

* U.S. 10-Year Treasury yield ~1.68%

May 12 - Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com

MAJOR U.S. INDEXES RED AFTER HOT CPI (0958 EDT/1358 GMT)

Major U.S. indexes are under pressure in early trade Wednesday. This after U.S. April CPI data came in hot.

The U.S. 10-Year Treasury yield is now up to around 1.68%. Although, still below its 1.7760% March 30 intraday high, it is on track for a 4th-straight daily gain, which has come with a more than 20 basis point rise off its 1.4690% May 7 intraday trough.

Under the surface, tech is taking the biggest hit, while financials , and energy post gains. Banks

are up, while FANGs and chips fall.

With this, growth is once again weakening vs value

. The IGX/IVX ratio is flirting with 2-months lows.

Regarding the CPI, Frances Donald, Global Chief Economist, Manulife Investment Management in Toronto, said, "This inflationary pressure in April is not driven by broad based inflationary pressure. Its being heavily distorted by ongoing COVID-19 impacts, particularly in the used car space."

Donald added, "What will be more important for markets on a go-forward basis is whether we're still seeing elevated inflation by July and August in which case inflationary pressures are not transitory and can start to weigh on general growth and also on markets."

Here is where markets stand in early trade:

(Terence Gabriel, Sinéad Carew)

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U.S. INFLATION: EUROPEAN BANKS ARE BIG FANS! (0855 EDT/1255 GMT)

Data showing U.S. inflation rising faster than expected has given a nice boost to euro zone government yields and the European banking sector.

While European lenders have had a stellar Q1 earnings season so far, many analysts believe rock-bottom interest rates would keep putting pressure on their margins going forward.

Now with U.S. inflation seemingly making a comeback, things are looking up on that front, at least that seems to be the thinking behind the surge in the European banking index.

The benchmark jumped about 1.3%, making its way to positive territory (+0.5%) just a few minutes after the data showed the U.S. CPI reaching 4.2% yearly instead of the 3.6% expected.

(Julien Ponthus)

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DOW INDUSTRIALS: FEELING GRAVITY'S PULL (0846 EDT/1246 GMT)

The Dow Jones Industrial Average has suddenly stumbled. Indeed, the blue-chip average had been defying Nasdaq

weakness into its most recent record closing high last Friday, and its record intraday high on Monday.

However, in just 2 days, with its 1.5% slide, the Dow is now on track for its worst weekly performance since late February. And with CBT e-mini Dow futures quoted down around 0.3% ahead of the open, the DJI looks to continue to the downside when the regular session kicks off.

Of note, the Dow's rise into its recent highs appears to have exhausted essentially at a log-scale resistance line from early 2019. Despite a modest intraday penetration on Monday, the line, now around 34,925, has capped on a closing basis:

With this, the Dow has spent more than 6 months struggling to sustain a breakaway extension relative to its rising 200-day moving average $(DMA.AU)$. Since hitting around a 15.2% disparity above this long-term moving average on December 4, the Dow has only managed to register 6 trading days above that level before quickly slipping back relative to the 200-DMA. It ended Tuesday 13.5% above the long-term average.

The 34,925/25/35,091 area is now seen as a significant barrier for the Dow, as is a 15.9% disparity vs the 200-DMA.

The Dow has support in the 33,765/33,685 area, but a break back below the former resistance line from 1929, which is now support around 33,250, and the 8.7% disparity support level, which is now around 32,850, can suggest the downside reversal may be about to intensify. This with the 200-DMA down closer to 30,000.

(Terence Gabriel)

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FOR WEDNESDAY'S LIVE MARKETS' POSTS PRIOR TO 0845 EDT/1245 GMT - CLICK HERE:

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(Terence Gabriel is a Reuters market analyst. The views expressed are his own)