(Reuters) - Wall Street's main indexes tumbled on Tuesday, with the Nasdaq opening down 2% before steadying a bit, as technology-related stocks with lofty valuations extended losses amid worries over inflation.

STORY: [.N]

MARKET REACTION:

* STOCKS: S&P 500 down 0.92%, Dow up 0.37%, Nasdaq down 0.34%

* BONDS: Benchmark 10-year notes last fell 6/32 in price to yield 1.6235%, from 1.602% late on Friday. [US/]

* FOREX: The dollar index fell 0.229%, with the euro up 0.34% to $1.217. [FRX/]

COMMENTS:

TIM GHRISKEY, CHIEF INVESTMENT STRATEGIST, INVERNESS COUNSEL, NEW YORK

"It comes back to this whole inflation issue. That's the primary factor. That's what's concerning people, that inflation is going to spiral out of control. The Fed is going to deny that is an issue. They've said they're not going to be fooled by a temporary spike but the market's going to think that inflation is really a problem."

"The valuation levels are very high so the market is priced for perfection which means if there are any issues out there stocks are going to get hit, especially high valuations stocks but there's nothing saying its just going to be high valuation stocks."