Futures that track the Nasdaq 100 index fell about 2%. Megacaps Microsoft Corp, Amazon.com, Apple Inc, Alphabet Inc, owner of Google, Meta Platforms and Tesla Inc fell between 1.9% and 3.2% in pre-market exchanges.
The yield on the benchmark 10-year Treasury bond rose to 3.19%, its highest level since November 2018, as last week’s data highlighted the strength of the US economy and investors bet on bigger rate hikes from the Fed to curb runaway inflation. [US/]
Most traders expect the US central bank to raise interest rates by 75 basis points at its June meeting, after raising them by 50 basis points this month. [IRPR]
Technology-focused growth stocks have been hardest hit by the downturn this year, as their yields and valuations become more depreciated when yields rise.
The tech-heavy Nasdaq posted its weakest close since 2020 on Friday, marking a fifth consecutive weekly loss, its longest losing streak since the fourth quarter of 2012.
The S&P 500 Growth Index has fallen nearly 21% since the start of the year, compared to a 13.5% decline for the benchmark S&P 500.
Globally, stocks tumbled and oil prices fell on Monday, driven by weak data on China and a tightened COVID-19 Shanghai lockdown that heightened investor fears that the world economy is heading for a slowdown. [GLOB/MKTS]
As of 6:19 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 minis were down 251.75 points, or 1.98%.
Meanwhile, the focus will be on US inflation data and a series of appearances by Fed speakers this week as investors seek clues on the path of interest rates.
Morgan Stanley fell 2.2% to lead declines among major banks.