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US STOCKS-Tech rout set to extend as investors fear rising inflation

Stock MarketsMay 11, 2021 21:00
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* Simon Property drops after results
* L Brands falls on plans to split into two public cos
* Energy stocks fall as oil prices slide
* Futures down: Dow 0.86%, S&P 1.28%, Nasdaq 1.98%

(Adds comment, details; updates prices)
By Medha Singh
May 11 (Reuters) - Wall Street's main indexes were set to
open sharply lower on Tuesday, signaling another day of losses
for technology-related stocks with lofty valuations on worries
over inflation.
The outperformers of 2020, Apple AAPL.O , Facebook Inc
FB.O , Amazon.com Inc AMZN.O , Netflix Inc NFLX.O and
Google-parent Alphabet Inc GOOGL.O dropped between 1.7% and
2.8% in premarket trading, while Tesla Inc TSLA.O fell nearly
8%.
Since the start of May, the 10-member NYSE FANG+TM index
.NYFANG , which includes the core FAANG group of stocks
alongside Tesla, Alibaba BABA.N , and Twitter Inc TWTR.N ,
have shed more than $442 billion in market value as of May 10.
The yield on benchmark U.S. 10-year Treasury note
US10YT=RR ticked up to 1.604% ahead of consumer price index
report on Wednesday, with investors fearing a strong reading
could prompt the Federal Reserve to alter its ultra loose
monetary policy. US/
"We've seen a spike in commodity prices, economic data has
been very strong and an uptick in rates has really pressured the
technology complex," said Dan Eye, head of asset allocation and
equity research, Fort Pitt Capital Group.
"If you're valuing a high-growth company based on its
earnings ten years out, those earnings into the future are worth
a lot less today at higher inflation levels."
In a late session reversal on Monday, inflation jitters
drove investors away from growth stocks to cyclicals, which
benefit the most as the economy reopens, resulting in the S&P
500 logging its worst day in nearly eight weeks.
At 8:29 a.m. ET, Dow e-minis 1YMcv1 were down 297 points,
or 0.86%, S&P 500 e-minis EScv1 were down 53.75 points, or
1.28%, and Nasdaq 100 e-minis NQcv1 were down 265 points, or
1.98%.
Simon Property Group Inc SPG.N fell 3.7% after the U.S.
mall operator said it does not expect a return to 2019 occupancy
levels until next year or 2023, as it looks to play hardball in
rent negotiations with tenants. L Brands Inc LB.N fell 3% after the company said it plans
to split itself into two publicly traded companies, Bath & Body
Works and Victoria's Secret, after the retailer decided against
a sale of the lingerie brand. Energy stocks including Occidental Petroleum Corp OXY.N ,
APA Corp APA.O and Chevron Corp CVX.N fell between 1.3% and
4% as oil prices declines sharply. O/R

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S&P 500 valuation versus price https://tmsnrt.rs/3bk7Fol
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US STOCKS-Tech rout set to extend as investors fear rising inflation
 

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