GLOBAL MARKETS-Inflation woes hobble US stocks, dollar cling to lows

  • Reuters
  • Stock Market News
GLOBAL MARKETS-Inflation woes hobble US stocks, dollar cling to lows
Credit: © Reuters.

(Updates with U.S. markets, adds dateline; previous London)

* Stock markets tumble as tech stocks sell off

* Inflation angst lingers across assets

* Commodities take breather after rapid rise

* Global asset performance

* World FX rates

By Koh Gui Qing and Marc Jones

NEW YORK/LONDON, May 11 (Reuters) - U.S. stocks tumbled on Tuesday as speculation that rising inflation pressure could prompt interest rate hikes sooner rather than later dragged on shares and hobbled the dollar, which struggled at a 2-1/2-month low.

Technology stocks were among the biggest losers, mirroring a sell-off in other technology stocks overnight in China, where talk of tighter regulation sent shares skidding.

The Nasdaq Composite .IXIC lost 1.3%, the Dow Jones Industrial Average .DJI shed 1.7% and the S&P 500 .SPX fell 1.6%.

"Commodities and inflation risks remained a key focus for investors amid mixed and choppy price action across global markets," said Chris Collins, an economist at Morgan Stanley (NYSE: MS ).

Bets that inflation could accelerate in coming months burst into the fore on Monday when U.S. five-year breakevens - a measure of inflation expectations - jumped a decade-high 2.717%.

Concerns about mounting price pressures have weighed on the dollar as investors bet it could erode the currency's value. The dollar index =USD , which measures the greenback against six major currencies, slipped 0.12% to 90.123, after touching a low of 89.979.

In keeping with market worries about a pick-up in inflation, the yield on benchmark 10-year Treasuries US10YT=RR edged up to 1.6288%.

Oil prices gave up early gains as concerns that rising COVID-19 cases in Asia will dampen demand outweighed expectations that a major U.S. fuel pipeline could restart swiftly. crude CLc1 dipped 0.43% to $64.66 a barrel. Brent crude LCOc1 fell 0.35% to $68.10 per barrel.

In metal markets, copper started to edge higher again. It was last at $10,530 a tonne having hit a record high $10,747.50 the previous session. MET/L

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Falling FAANGs China's BAT (LON: BATS ) tech stocks hit by anti-monopoly drive


Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or