Nasdaq futures fall over 1% on inflation worries By Reuters

By Medha Singh

(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 (NASDAQ:), Facebook Inc (NASDAQ:), Amazon.com Inc (NASDAQ:), Netflix Inc (NASDAQ:) and Google-parent Alphabet (NASDAQ:) Inc dropped between 1% and 2% in premarket trading, while Tesla (NASDAQ:) 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 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, were down 169 points, or 0.49%, were down 31.5 points, or 0.75%, and were down 169.25 points, or 1.27%.

Simon Property Group Inc (NYSE:) 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.