GLOBAL MARKETS-Stocks gain, bond yields jump on potential Democratic control of U.S. Senate

* U.S. stocks rise in late morning New York trading

* U.S. dollar index rises

* Spot gold prices fall

(Updates with early U.S. markets activity, changes dateline, previous LONDON)

By Caroline Valetkevitch

NEW YORK, Jan 6 (Reuters) - Global stock indexes rose and 10-year U.S. Treasury yields topped 1% for the first time since March on Wednesday as Democratic control of the U.S. Senate following Georgia's runoff elections appeared more likely.

The S&P 500 was up more than 1% as investors snapped up financial and industrial stocks on bets that a Democrat-controlled Senate would lead to more fiscal stimulus and infrastructure spending. Nasdaq was also higher but underperforming the other two major U.S. indexes on fears of increased regulatory scrutiny of technology mega-caps if the Democrats gain control of the Senate.

"What investors are trying to figure out is how quickly the Democrats would be able to introduce their tax agenda if they take control of the Senate, and would they be more likely to act on regulation on big tech," said Quincy Krosby, chief market strategist at Prudential Financial (NYSE: PRU ) in Newark, New Jersey.

Democrats won one U.S. Senate race in Georgia and led in another, moving closer to a sweep in a deep South state that would give them control of Congress and the power to advance President-elect Joe Biden's policy goals. A final outcome is not expected until later on Wednesday. Dow Jones Industrial Average .DJI rose 531.56 points, or 1.75%, to 30,923.16, the S&P 500 .SPX gained 47.55 points, or 1.28%, to 3,774.41 and the Nasdaq Composite .IXIC added 61.46 points, or 0.48%, to 12,880.42.

The pan-European STOXX 600 index .STOXX rose 1.51% and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.93%.

With prospects increasing for further economic stimulus measures, the 10-year yield US10YT=RR was last up 9.7 basis points at 1.0524%. the currency market, the dollar bounced after sinking to its lowest level in nearly three years. dollar index =USD rose 0.274%, with the euro EUR= down 0.14% to $1.2277.

Oil prices were higher, while spot gold XAU= dropped 2.3% to $1,905.18 an ounce.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Global assets

http://tmsnrt.rs/2jvdmXl Global currencies vs. dollar

http://tmsnrt.rs/2egbfVh Emerging markets

http://tmsnrt.rs/2ihRugV MSCI All Country Wolrd Index Market Cap

http://tmsnrt.rs/2EmTD6j US 10-year Treasury yield above 1%

https://tmsnrt.rs/3s19rBp

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>