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Nasdaq futures slide 2% as higher yields pressure growth stocks By Reuters
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Introduction© Reuters. A trader works on the trading floor at the New York Stock Exchange (NYSE) in Manhattan, N ...

(Reuters) - U.S. stock index futures slid on Monday as rising U.S. Treasury yields weighed on growth stocks amid prospects of aggressive policy tightening by the Federal Reserve, with fears of a sharp economic slowdown in China also dampening the sentiment.
Futures tracking the Nasdaq 100 index tumbled about 2%. Megacap stocks Microsoft Corp (NASDAQ:MSFT), Amazon.com (NASDAQ:AMZN), Apple Inc (NASDAQ:AAPL), Google-owner Alphabet (NASDAQ:GOOGL) Inc, Meta Platforms and Tesla (NASDAQ:TSLA) 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 (NYSE:MS) fell 2.2% to lead declines among the big banks.
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