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By Stephen Culp

NEW YORK, Sept 27 (Reuters) - Wall Street ended mixed on Monday as investors began the last week of September and the quarter with a pivot to value as tech shares, hurt by rising Treasury yields, weighed on the Nasdaq Composite index .IXIC .

The S&P 500 index .SPX joined the Nasdaq in negative territory, but the blue-chip Dow Jones Industrial Average .DJI ended higher.

Economically sensitive smallcaps .RUT and transports

.DJT outperformed the broader market.

"The economic reopening trade is alive and well," said Chuck Carlson, chief executive of Horizon Investment Services in Hammond, Indiana. "Economically sensitive stocks are up, and tech’s being worked over pretty good."

Benchmark U.S. Treasury yields rose, to the benefit of rate-sensitive financials .SPSY US/ . Rising crude prices

CLc1 pushed energy stocks .SPNY to a higher close. O/R

"Rising rates typically reflect investors having a little bit more confidence in the economy not being stalled out," Carlson added. "And the Fed is also indicating it's going to start tapering sooner rather later, and that's probably helping upward trajectory in rates."

Those rising yields hurt some market leaders that had benefited from low rates. Microsoft Corp MSFT.O , Apple Inc

AAPL.O , Amazon.com Inc AMZN.O and Alphabet Inc GOOGL.O and all lost ground.

In Washington, negotiations over funding the government and raising the debt ceiling were heating up at the start of a week that could also include a vote on U.S. President Biden's $1 trillion infrastructure bill.

On the economic front, new orders for durable goods waltzed past analyst expectations, gaining 1.8% in August. The value of total new orders has grown beyond pre-pandemic levels to a seven-year high.

Unofficially, the Dow Jones Industrial Average .DJI rose

72.95 points, or 0.21%, to 34,870.95, the S&P 500 .SPX lost

12.27 points, or 0.28%, to 4,443.21 and the Nasdaq Composite

.IXIC dropped 75.77 points, or 0.5%, to 14,971.93.

While the S&P 500 value index .IVX has underperformed growth .IGX so far this year, that gap has narrowed in September as investors increasingly favor lower valuation stocks that stand to benefit most from economic revival.

The S&P 500 is on track to snap its seven-month winning streak, with the prospect of higher corporate tax rates and hints from the U.S. Federal Reserve that it could start to tighten its accommodative monetary policies in the months ahead.

Goldman Sachs strategists see potential corporate rate hikes as a headwind to its outlook for return-on-equity (ROE) on U.S. stocks in 2022, the broker said in a research note.

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(Reporting by Stephen Culp; Additional reporting by Devik Jain in Bengaluru; Editing by Richard Chang)

((stephen.culp@thomsonreuters.com; 646-223-6076;))