Shares falls as Nasdaq tumbles, dollar edges higher

* Dollar clawing back ground in FX markets

* Commodities consolidate gains

* Graphic: Global asset performance Link

* Graphic: World FX rates Link

By Herbert Lash and Marc Jones

NEW YORK/LONDON, May 4 (Reuters) - World equity indexes slid and U.S. Treasury yields fell on Tuesday as low trading volume, a lull in economic news and lack of a catalyst to lift stocks higher sparked a sell-off by investors worried further upside in markets is limited.

The tech-rich Nasdaq .IXIC fell 2.3%, marking its biggest single-day decline in six weeks, while the yield on the 10-year Treasury note fell to a low of 1.557%, a slide that normally would push technology shares higher.

A recent surge in commodity prices bucked the downward shift in equity markets and helped spur talk of an inflation spike.

The Refinitiv/CoreCommodity CRB Index .TRCCRB traded near three-year highs as commodities rallied on investor bets demand will grow as economies reopen.

Investors sold the high-flying tech-related stocks that have doubled the value of the Nasdaq since March 2020 lows, and bought government debt, pushing yields lower.

Apple Inc AAPL.O , Inc AMZN.O and Microsoft Corp MFST.O led the decline on Nasdaq and the S&P 500.

"There's not a lot of conviction among traders of which way markets should go from here," said Patrick Leary, chief market strategist and senior trader at Incapital. "We've priced in a great amount of reopening optimism."

MSCI's benchmark for global equity markets .MIWD00000PUS fell 1.06% to 695.88.

On Wall Street, the Dow Jones Industrial Average .DJI fell 0.26%, the S&P 500 .SPX lost 1.03% and the Nasdaq Composite .IXIC dropped 2.27%.

Economically sensitive value stocks .RLV fell 0.2%, outperforming a 2% slide in growth stocks. After today's slide, the Russell 1000 Value Total Return Index .RLVTRI has almost quadrupled the performance of the Russell 1000 Growth Total Return Index so far this year

European tech stocks .SX8P plunged 3.8% in their worst day since late-October. Germany's bourse .GDAXI shed 2.5%, the most in Europe, due to its high composition of tech stocks.

Chipmaker Infineon IFXGn.DE fell 5.9%, among the top drags on the German index, after the company said it expected supply constraints in the automotive sector to only ease in the second half, with lost volumes likely to be made up in 2022.

In currency markets, the dollar USD= clawed back some ground to partially unwind last month's long decline as investors squared up positions ahead of monthly payrolls data due at the end of the week.

The dollar index =USD rose 0.337%, with the euro EUR= down 0.42% to $1.201. The Japanese yen weakened 0.22% versus the greenback at 109.31 per dollar.

Signs that the world's major central banks remain in no rush to reel in their massive stimulus programs kept 10-year U.S. Treasury yields under 1.65% and Germany's Bund yields below 13-month highs.

Australia's central bank left its key interest rates at near zero overnight for a fifth straight meeting and pledged to keep its policies super-supportive for a prolonged period.

Australia's S&P/ASX200 .AXJO had risen 0.6% and Hong Kong .HSI had climbed 0.7% in thin Asian trading due to holidays in both China and Japan.

Cryptocurrency ether ETH=BTSP powered to another record peak, nearing $3,500, before paring gains to trade 5.4% lower.

Palladium prices soared to all-time highs, fueled by concerns about short supplies of the auto-catalyst metal as demand gradually improves.

Oil prices rose after more U.S. states eased pandemic-related lockdowns and the European Union sought to attract travelers, though soaring COVID-19 cases in India capped gains.

Brent crude futures LCOc1 settled up $1.32 at $68.88 a barrel, while U.S. crude futures CLc1 rose $1.20 to settle at $65.69 a barrel.

Gld fell 1% after U.S. Treasury Secretary Janet Yellen said interest rates may need to rise.

U.S. gold futures GCv1 settled down 0.9% at $1,776 an ounce.

Emerging markets Link
Global asset performance Link
Sterling's referendum rollercoaster rides Link
India suffering world's worst COVID wave Link

Reporting by Marc Jones; Editing by Ed Osmond, John
Stonestreet and Chizu Nomiyama

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