* Aussie tech stocks track U.S. peers, hit 2-month low
* Consumer staples up 0.2%, sole gainer on index
* NZ stocks decline for fifth straight session (Updates to close)
By Savyata Mishra
May 11 (Reuters) - Tech stocks dragged Australian shares lower on Tuesday, in line with broader Asian markets, as investors worried that rising commodity prices could stoke inflation and lead to a sooner-than-expected interest rate hike by the U.S. Federal Reserve.
The S&P/ASX 200 index .AXJO slipped about 1.1% to close at 7,097, pulling back from a record closing high hit on Monday.
Overnight, U.S. stocks fell off record highs, with high-flying technology stocks taking a beating, as inflation data due on Wednesday and appearances by Federal Reserve members later on Tuesday kept investors on edge. tech stocks .AXIJ slumped as much as 4.5%. Buy-now-pay-later firms were among the biggest losers, with index heavyweight Afterpay APT.AX sinking about 9.5% to a seven-month low.
"There's a real concern, especially with a lot of Fed speakers coming out this week, that inflationary chat will come through, which could lead to increased expectations of a rate hike," said Nick Twidale, chief executive officer of APAC, FP Markets.
"It's a combination of that and a bit of profit-taking. So, I don't think investors will be too concerned to see this little bit of a natural correction in the market. If it continues on for two or three more days, then we'll start to get a little bit more worried."
Investors now await the country's federal budget due later in the day that is expected to embrace billions in new spending to secure a recovery from the pandemic. .AXMM slumped 1.3% with BHP Group BHP.AX and Rio Tinto (LON:RIO) RIO.AX retreating from record highs scaled on Monday to end 0.7% and 1.75% lower, respectively.
Consumer staple stocks .AXSJ , which are considered defensive and usually outperform tech stocks when borrowing costs rise, were the sole gainers on the index, finishing about 0.2% higher.
New Zealand's benchmark S&P/NZX 50 index .NZ50 extended losses into the fifth session, ending 0.2% lower. (Editing by Subhranshu Sahu)