US STOCKS-Wall Street drops on inflation jitters, led by tech stocks

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* Simon Property drops on bleak outlook
* L Brands falls on plans to split into two public cos
* Energy stocks fall as oil prices slide
* Indexes down: Dow 0.75%, S&P 0.72%, Nasdaq 0.66%

(Updates to market open)
By Medha Singh and Sruthi Shankar
May 11 (Reuters) - Wall Street's main indexes fell on
Tuesday, led by tech-related stocks, as investors feared that
rising inflation could push the Federal Reserve to tighten
monetary policy faster than expected.
The outperformers of 2020, Apple AAPL.O , Amazon.com Inc
AMZN.O , Microsoft Corp MSFT.O , Google-parent Alphabet Inc
GOOGL.O and Tesla Inc TSLA.O fell between 0.8% and 2.4%,
weighed the most on the S&P 500.
The 10-member NYSE FANG+TM index .NYFANG , which includes
the FAANG group of stocks alongside Tesla, Alibaba BABA.N , and
Twitter Inc TWTR.N , declined 1%, extending the index's market
cap loss of more than $442 billion so far this month.
The yield on benchmark U.S. 10-year Treasury note
US10YT=RR ticked up to session high of 1.629% ahead of
consumer price index report on Wednesday.
Investors have grown wary of fast price rises even though
the central bank has repeatedly said it views any inflation that
occurs to be transitory. 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.
All major S&P sectors were in the red, with the energy index
.SPNY shedding 1.8%, the most due to weaker oil prices. O/R
At 10:00 a.m. ET, the Dow Jones Industrial Average .DJI
fell 259.99 points, or 0.75%, to 34,482.83, the S&P 500 .SPX
lost 30.14 points, or 0.72%, to 4,158.74 and the Nasdaq
Composite .IXIC lost 88.84 points, or 0.66%, to 13,313.02.
Simon Property Group Inc SPG.N fell 3.3% 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. Declining issues outnumbered advancers by a 3.9-to-1 ratio
on the NYSE and by a 2.5-to-1 ratio on the Nasdaq.
The S&P 500 posted three new 52-week highs and one new low,
while the Nasdaq recorded 16 new highs and 203 new lows.