US STOCKS-Wall St cuts losses as global bond worries weigh
* AOL jumps to 15-month high on Verizon's $4.4 bln offer
* 10-yr U.S. Treasury yields slip after touching 6-month highs
* Higher global bond yields threaten corporate expansion
* Dow and Nasdaq near flat, S&P down 0.1 pct (Updates with recovery in indices)
By Noel Randewich
May 12 (Reuters) - U.S. stocks recovered losses to trade near flat on Tuesday afternoon as a recent run-up in global bond yields unsettled investors already concerned about an eventual Federal Reserve interest rate hike.
Stocks indexes had earlier fallen to their lowest in about a week but bounced back after Treasury yields ticked down slightly from six-month highs.
The recent, unexpected leap in yields on U.S. Treasuries and the Germany Bund has been a thorn in the side of U.S. stock investors for several days.
"In the short term, the market is a hostage to interest rates, said Jim Awad, managing director at Plimsoll Mark Capital. "To the extent you have an increase in interest rates that the Fed doesn't control, you're getting an unwanted tightening in the financial markets." Continuación...