Global stocks recover losses as investors eye the potential impact of inflation on Big Tech, while oil steadies after hitting multi-year highs

Global stocks recover losses as investors eye the potential impact of inflation on Big Tech, while oil steadies after hitting multi-year highs

Global stocks recovered losses on Tuesday, after tech-heavyweights tumbled the previous day on concern that surging raw material prices are adding to inflationary pressures, while oil prices steadied after hitting multi-year highs. Futures on the and rose 0.2% each, while those on the rose 0.4% as of 4:30 a.m. ET, suggesting a slightly higher start to trading later in the day. On Monday, the S&P 500 fell to its lowest since July and the , dragged down by mega-cap tech stocks including and . The latter fell by almost 5% in regular trading after a massive outage that lasted almost six hours paralyzed all its services. "Non-transient inflation leading to interest rate rises bashed technology stocks," said Jeffrey Halley, senior market analyst at OANDA. Mega-cap tech stocks were slammed in particular due to their sensitivity to potentially higher US interest rates, which could be brought on by a Fed taper or a US government debt default, he added. Investors are looking ahead to Friday's US non-farm payrolls for some clarity on the Federal Reserve's tapering decision. The Fed is likely to announce a plan for reducing asset purchases at its November meeting, unless Friday's employment report shows job losses rather