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Wall Street Tumbles Pre-Bell, Inflation Concerns Spook Tech Sector

05/11/2021 05:18

09:09 AM EDT, 05/11/2021 (MT Newswires) -- US stocks were set to open lower Tuesday, with Nasdaq futures deep in the red as inflation worries weighed on the technology sector.

Dow Jones Industrial Average futures fell 280 points or 0.8%, S&P futures declined 52 points or 1.2%, while Nasdaq futures slumped 268.3 points or 2.0%.

The Nasdaq Composite tumbled more than 2.5% Monday, with the selloff in megacap high-growth stocks expected to continue on inflation concerns. The United States is scheduled to report inflation figures later in the week, with Commerzbank expecting a 3.5% rise in the headline rate.

Oil prices fell, with global benchmarks Brent crude down 1.1% and US West Texas Intermediate crude down 1.3%, as the Colonial Pipeline disruption appeared likely to be a short-term glitch, with operations expected to be fully restored by the end of the week.

At 10 am, data are expected to show job openings based on the Labor Department's JOLTS report coming in at 7.5 million in March versus 7.367 million in February, according to Bloomberg data.

In other world markets, Japan's Nikkei closed 3.1% lower, Hong Kong's Hang Seng closed 2% lower, and China's Shanghai Composite closed 0.4% higher. Meanwhile, UK's FTSE 100 fell 2.9% and Germany's DAX index declined 2.5% in Europe's early afternoon session.

On the winning side, shares of Brooks Automation (BRKS) were 3.4% higher pre-bell after the company posted higher financial results in fiscal Q2. Ferro (FOE) shares soared 22.8% after the company agreed to be acquired by Prince International in a $2.1 billion deal. 3D Sys (DDD) shares increased 8.9% after the company posted higher Q1 profit and revenue.

On the losing side, Alset Ehome (AEI) shares slumped 38% after the company priced a public offering of $32 million stock-warrant units. CarLotz (LOTZ) shares declined 16% after the company reported a wider Q1 net loss.