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

Published 11/05/2021, 16:34
Updated 11/05/2021, 16:36
© 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 http://tmsnrt.rs/2yaDPgn
* World FX rates http://tmsnrt.rs/2egbfVh

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.
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. U.S. 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

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Falling FAANGs https://tmsnrt.rs/3eDpkcU
China's BAT tech stocks hit by anti-monopoly drive https://tmsnrt.rs/3vV7Kqq
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