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
China's BAT tech stocks hit by anti-monopoly drivehttps://tmsnrt.rs/3vV7Kqq
(Additional reporting by Tom Westbrook in Singapore; Editing by Gabriela Baczynska, William Maclean and Dan Grebler)
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