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Megacap stocks Meta Platforms, Microsoft Corp, Google-owner
Alphabet Inc, Apple Inc, Amazon.com and Tesla Inc slipped
between 1% and 2.1% in premarket trading.
Chipmakers Intel Corp, Advanced Micro Devices and Nvidia Corp
were down between 0.7% and 1.8%.
The tech-heavy Nasdaq index slumped over 3% on Wednesday,
bringing year-to-date losses to 27.4% after data showed U.S.
consumer prices moderated in April though it is likely to stay
hot for a while and keep the Federal Reserve's foot on the
brakes to cool demand.
Growth stocks, which led Wall Street's rally from the pandemic
lows in 2020, have borne the brunt of a selloff this year, as
their returns and valuations are discounted more deeply when
rates go up.
The S&P 500 growth index has declined 25.6% so far this year, as
compared to an 8.4% fall in its value counterpart which houses
economy-sensitive sectors like banks, energy, and industrials.
Focus will now be on U.S. producer price index (PPI) data and
weekly jobless claims number at 08:30 a.m. ET.
Traders are pricing in a 63% chance of a 75 basis point hike by
the Fed in June. [IRPR]
At 06:41 a.m. ET, Dow e-minis were down 166 points, or 0.52%,
S&P 500 e-minis were down 26.25 points, or 0.67%, and Nasdaq 100
e-minis were down 133.75 points, or 1.12%.
Among other stocks, Walt Disney Co slid 4.8% after its
second-quarter revenue and profit fell short of estimates and
the entertainment giant cautioned supply chain disruptions and
rising wages could pressure finances.
Plant-based protein maker Beyond Meat Inc slumped 24.2% and was
on track to open below its IPO price as quarterly losses
ballooned.
Rivian Automotive Inc rose 2.7% after the electric-vehicle maker
maintained its 2022 production target of 25,000 units.
(Reporting by Devik Jain and Amruta Khandekar in Bengaluru;
Editing by Sriraj Kalluvila)
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