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Futures tracking the Nasdaq 100 index tumbled about 2%. Megacap
stocks Microsoft Corp, Amazon.com, Apple Inc, Google-owner
Alphabet Inc, Meta Platforms and Tesla Inc fell between 1.9% and
3.2% in premarket trading.
Yield on the benchmark 10-year Treasury note rose to 3.19%, its
highest level since November 2018, as data last week underscored
strength in the U.S. economy and investors bet on bigger rate
hikes by the Fed to curb surging inflation. [US/]
Most traders expect the U.S. central bank to raise interest
rates by 75 basis points at its June meeting, after increasing
it by 50 basis points this month. [IRPR]
Technology-focused growth stocks have faced the brunt of the
selloff this year, as their returns and valuations are
discounted more deeply when yields rise.
The tech-heavy Nasdaq registered its lowest close since 2020 on
Friday, notching a fifth straight weekly loss, its longest
losing streak since the fourth quarter of 2012.
The S&P 500 growth index has dropped nearly 21% year-to-date,
compared to a 13.5% fall in the benchmark S&P 500 index.
Globally, stocks tumbled and oil prices fell on Monday, sparked
by weak China data and a tightened COVID-19 lockdown in Shanghai
that deepened investors' fears that the global economy is headed
for a slowdown. [GLOB/MKTS]
At 06:19 a.m. ET, Dow e-minis were down 446 points, or 1.36%,
S&P 500 e-minis were down 67.75 points, or 1.64%, and Nasdaq 100
e-minis were down 251.75 points, or 1.98%.
Meanwhile, focus will be on U.S. inflation data and a slew of
Fed speakers appearances this week as investors seek clues on
the path of interest rates.
Morgan Stanley fell 2.2% to lead declines among the big banks.
(Reporting by Devik Jain in Bengaluru; Editing by Sriraj
Kalluvila)
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