(Reuters) – Futures tracking the Nasdaq dropped more than 1% on Tuesday, pointing to an another day of losses for technology-related stocks with lofty valuations on worries over inflation.
Shares of Apple, Facebook Inc, Amazon.com Inc, Netflix Inc and Google-parent Alphabet Inc dropped between 1% and 2% in premarket trading, while Tesla Inc fell nearly 4%.
The yield on benchmark U.S. 10-year Treasury note ticked up to 1.604% ahead of consumer price index report on Wednesday, with investors fearing that a strong reading could prompt the Federal Reserve to alter its ultra loose monetary policy. [US/]
In a late session reversal on Monday, inflation jitters drove investors away from growth stocks to cyclicals, which benefit the most as the economy reopens, resulting in the S&P 500 logging its worst day in nearly eight weeks.
“It seems to be a combination of inflation fears making a comeback and some market participants moving higher along the value spectrum, cutting their exposure to anything with a stretched valuation,” said Marios Hadjikyriacos, investment analyst at online broker XM in Cyprus.
At 6:16 a.m. ET, Dow e-minis were down 169 points, or 0.49%, S&P 500 e-minis were down 31.5 points, or 0.75%, and Nasdaq 100 e-minis were down 169.25 points, or 1.27%.
Simon Property Group Inc fell 3.6% after the U.S. mall operator said it does not expect a return to 2019 occupancy levels until next year or 2023, as it looks to play hardball in rent negotiations with tenants.
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