(Updates prices)

* Tech stocks rebound on dip buying, led by ASML, Infineon,

Nvidia

* Rising bond yields and sticky inflation prompt caution

among investors, BofA analysts note

* Oil prices fall as Israel and Iran agree to halt attacks;

Brent drops 1.75%

By Amanda Cooper

LONDON, June 9 (Reuters) - Global stocks rallied on Tuesday

as investors rushed to buy the latest dip in tech stocks, while

oil prices fell after Israel and Iran agreed to halt attacks on

one another for now.

In Europe, the STOXX 600 rose 0.7%, led by tech

heavyweights ASML and Infineon. U.S. stock

futures rose 0.5% to 0.8%, as a broad range of

shares gained in pre-market trading, including Meta,

Eli Lilly ( LLY ) and Goldman Sachs ( GS ), which were up around

1%.

Excitement about artificial intelligence was front and centre,

with ChatGPT maker OpenAI confidentially filing for a U.S.

initial public offering on Monday, days before SpaceX's hotly

anticipated market debut this week.

"Wall Street bankers and CEOs are beside themselves with

excitement about these mega-cap listings. However, on the street

there is some caution setting in," XTB research director

Kathleen Brooks said.

"Although we fully expect the SpaceX IPO to be successful,

the IPO itself is probably the least interesting event; what is

far more interesting will be SpaceX's future earnings reports,

which will need to be big to justify a valuation that is 56

times forward earnings."

The next big test for tech will be results from Oracle

on Wednesday.

BORROWING COSTS

Investors are also wary about the risks stemming from rising

borrowing costs. U.S. 10-year Treasury yields are

above 4.5% and, crucially, 30-year yields have spent

more days north of 5% this year than in any year since 2007,

according to LSEG data.

In the Middle East, tensions are running high and maritime

traffic through the Strait of Hormuz is well below normal

levels, which is keeping oil prices above $90 a barrel.

"Inflation remains sticky enough that 46 of 68 global

central banks are overshooting targets, which helps explain why

bond markets are repricing for tighter policy, and why

long-duration assets, private credit, and several EM currencies

are struggling," analysts at Bank of America said in a note.

"Our Global Breadth Rule shows nearly half of equity markets

already overbought, led by Korea, Taiwan and Finland."

The prospect of the Federal Reserve raising rates this year

to curb unwelcome pickups in inflation has dented bonds and

boosted the dollar, which has gained about 2% in the last

four weeks. Friday's May payrolls report helped cement the view

that at least one hike this year is a possibility. Data on U.S.

consumer prices, due Wednesday, are expected to show surging

energy costs kept pushing headline inflation higher in May.

Futures imply around a 60% chance of a Fed rate rise as soon

as October, and a quarter-point move is almost fully priced for

December.

Markets are also fully priced for a quarter-point hike to 2.25%

by the European Central Bank when it meets on Thursday, and they

see the key rate at 2.5% or 2.75% by the end of the year.

The surprising strength of U.S. employment kept the dollar

underpinned at 160.2 yen, above the 160 mark that many

believe could trigger more buying by Japanese authorities.

Finance Minister Satsuki Katayama on Tuesday said officials

are "always prepared to take decisive measures."

The euro was last up 0.3% at $1.157, just above a

nine-week low of $1.15, while the pound rose nearly 0.5%

to nearly $1.34, having pulled off a three-week trough struck

earlier.

In commodity markets, Brent crude futures dropped 2.1%

to $92.3. The price of oil has retreated from late April's

four-year high of $126, but it is still nearly 30% higher than

where it was in late February, while futures for the delivery of

crude in six months' time are 21% above those levels.

(Additional reporting by Wayne Cole in Sydney; Editing by Thomas

Derpinghaus and Gareth Jones)