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Electric-car maker Tesla (NASDAQ:TSLA) Inc fell 3.4% in premarket trading after data showed China auto sales plunged in March, hurt by the country’s curbs to rein in COVID-19 outbreaks.
Twitter Inc (NYSE:TWTR) declined 2% after the micro-blogging site said Tesla boss Elon Musk rejected its offer to join the company’s board.
Megacap growth stocks such as Meta Platforms and Microsoft Corp (NASDAQ:MSFT), slipped over 1% each as the benchmark 10-year Treasury yield climbed to 2.75%. [US/]
Market-leading growth and technology stocks, whose valuations have grown rapidly in the wake of low interest rates, have come under stress since late March on signals from the Fed that it will aggressively hike rates to control soaring inflation.
Data on Tuesday is expected to show U.S. consumer prices leapt to a fresh four-decade high of 8.5% in March, on a year-on-year basis, after hitting 7.9% in February as the Ukraine conflict drives up energy costs.
At 06:52 a.m. ET, Dow e-minis were down 18 points, or 0.05%, S&P 500 e-minis were down 15.25 points, or 0.34%, and Nasdaq 100 e-minis were down 108 points, or 0.75%.
Investors will also be focusing on the big U.S. banks, which kick off the first-quarter earnings season on Wednesday. They are expected to show a sharp decline in quarterly earnings from a year earlier.
U.S.-listed Chinese shares mirrored a slump in domestic stocks amid concerns over pandemic curbs and inflation in China. Alibaba (NYSE:BABA) Group Holdings Inc, JD (NASDAQ:JD).com Inc and Pinduoduo (NASDAQ:PDD) Inc fell between 1.2% and 2.4%.
