* Euro STOXX 600 .STOXX down 1.5%
* MSCI world equity index down 0.6%, set for fourth day of losses
* Shock rise in U.S. CPI stirs fear of Fed tapering
* Treasury yields, rise after jump
* Bitcoin recovers after Tesla puts a hold on acceptance
* World stocks heading for worst week of year
* Metals, crop prices fall after rampant run
* Graphic: Global asset performance http://tmsnrt.rs/2yaDPgn
* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
By Koh Gui Qing and Tom Wilson
NEW YORK/LONDON, May 13 (Reuters) - U.S. shares rebounded on Thursday after falling for three consecutive days and benchmark Treasury yields edged lower as investors snapped up technology stocks and shrugged off worries over rising prices, for now.
By early morning, the Dow Jones Industrial Average .DJI rose 1.5%, the S&P 500 .SPX was up 1.4%, and the Nasdaq Composite .IXIC jumped 1.3%.
Yields on 10-year Treasuries US10YT=TWEB , which had climbed 7 basis points overnight in the biggest daily rise in two months, edged lower in early trade to stand at 1.6744%.
"We're certainly oversold here, so remember our 5-percent maxim: buy every S&P 500 down 5 percent close after the first one," said Nicholas Colas, co-founder of DataTrek Research.
Against a basket of major peers, the dollar =USD was steady at 90.695, holding gains eked out on Wednesday when the greenback strengthened on data that showed U.S. faster-than-expected acceleration of inflation in April. USD/
Before Thursday's recovery in U.S. stocks, world stock markets were spiraling toward their worst week of the year as the rise in U.S. inflation worried bond markets and as red-hot metals, crop and cryptocurrency prices all suffered sudden stops.
Asia took a pounding overnight, London's FTSE .FTSE was down 2% before lunch, bond, commodity and U.S. futures markets were all deep in the red and Elon Musk and Tesla were no longer accepting bitcoin. .EU .N MET/ there were plenty of idiosyncrasies, the overarching worry was that rising inflation pressure in the United States might force the Federal Reserve to start turning off its cheap money that has been driving markets rapidly higher.
"Inflation pressures are going to be rising, and they're not going to be temporary," said Jeremy Gatto, investment manager at Unigestion. "What does that mean? Effectively that (interest) rates will be rising."
Oil prices fell on Thursday despite a sharp drop in U.S. crude inventories, as market participants took profits following days of buying spurred by a cold snap in the largest U.S. energy-producing state.
Brent crude LCOc1 fell 2.4% 2020, while U.S. West Texas Intermediate crude CLc1 dropped 2.6%.
For the cryptonites, there was a ray of light as bitcoin BTC=BTSP steadied at $50,407 after a 13% drop when Elon Musk said Tesla TSLA.O would stop accepting it as payment because of the amount of fossil fuels that go into bitcoin "mining." is created by high-powered computers competing against other machines to solve complex mathematical puzzles. At current rates the process is estimated to devour about the same amount of energy annually as the Netherlands did in 2019.
Ether ETH=BTSP , the world's second-largest cryptocurrency, gained 1% to $3,852.43.
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https://tmsnrt.rs/2zpUAr4 Asia-Pacific valuations
https://tmsnrt.rs/2Dr2BQA U.S. core inflation
https://tmsnrt.rs/2RNcYWC
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