Australian shares set to fall, Wall Street tech stocks drop and oil prices hit three-year high

The Australian share market is set to open lower as oil prices hit a three-year high and tech stocks dragged down Wall Street on bets of rising interest rates.

The oil price surge is stoking speculation that global inflation will prove longer-lasting than anticipated, forcing central banks to act and benefiting so-called reflation investments, which rise in tandem with interest rates.

The Dow closed 0.2 per cent higher at 34,869 points.

"Technology stocks are higher valuation, meaning you're paying for future growth, and higher interest rates are a brake on future growth," said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York.