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Investors are also awaiting a reading on the Federal Reserve's
preferred inflation measure due at 8.30 a.m. ET to see if the
surge in prices have peaked.
A Commerce Department report is expected to show core personal
consumption expenditure price index, excluding the volatile food
and energy components, likely rose 0.4% in May, compared to a
0.3% rise in the previous month.
Markets have been torn between growth and inflation worries,
with central bank chiefs across the world prioritizing on steps
to lower a well-entrenched inflation at all costs.
Federal Reserve chair Jerome Powell has vowed to not let the
U.S. economy slip into a "higher inflation regime", even if it
means raising interest rates to levels that put growth at risk.
The S&P 500 index was on track to end the first half of the year
with the biggest percentage drop since 1970, while the Nasdaq
Composite was set for its largest declines ever during the same
period.
The Dow Jones Industrial Average was set for its biggest
January-June percentage drop since the financial crisis, and all
the three main indexes are bound to post their second
consecutive quarterly declines, for the first time since 2015.
Fed policymakers in recent days have set expectations for their
second consecutive 75 basis point interest rate hike in July
even as economic data painted a dour picture of the American
consumer.
Large-cap growth stocks including Microsoft Corp, Apple Inc,
Amazon.com Inc and Tesla Inc fell between 1.7% and 2.4% in
premarket trading, leading declines on the day.
At 6:08 a.m. ET, Dow e-minis were down 317 points, or 1.02%, S&P
500 e-minis were down 49.75 points, or 1.3%, and Nasdaq 100
e-minis were down 195.25 points, or 1.67%.
(Reporting by Shreyashi Sanyal in Bengaluru; Editing by Arun
Koyyur)
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