Futures signal more selling on Wall Street

© Reuters. Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., May 11, 2022. REUTERS/Brendan McDermid

(Reuters) - U.S. stock index futures fell on Thursday, with growth stocks leading declines as investors worried that aggressive interest rate increases to curb decades-high inflation could tip the economy into recession.

Megacap stocks Meta Platforms, Microsoft Corp (NASDAQ:MSFT), Google-owner Alphabet (NASDAQ:GOOGL) Inc, Apple Inc (NASDAQ:AAPL), Amazon.com (NASDAQ:AMZN) and Tesla (NASDAQ:TSLA) Inc slipped between 1% and 2.1% in premarket trading.

Chipmakers Intel Corp (NASDAQ:INTC), Advanced Micro Devices (NASDAQ:AMD) and Nvidia (NASDAQ:NVDA) Corp were down between 0.7% and 1.8%.

The tech-heavy Nasdaq index slumped over 3% on Wednesday, bringing year-to-date losses to 27.4% after data showed U.S. consumer prices moderated in April though it is likely to stay hot for a while and keep the Federal Reserve's foot on the brakes to cool demand.

Growth stocks, which led Wall Street's rally from the pandemic lows in 2020, have borne the brunt of a selloff this year, as their returns and valuations are discounted more deeply when rates go up.

The S&P 500 growth index has declined 25.6% so far this year, as compared to an 8.4% fall in its value counterpart which houses economy-sensitive sectors like banks, energy, and industrials.

Focus will now be on U.S. producer price index (PPI) data and weekly jobless claims number at 08:30 a.m. ET.

Traders are pricing in a 63% chance of a 75 basis point hike by the Fed in June. [IRPR]

At 06:41 a.m. ET, Dow e-minis were down 166 points, or 0.52%, S&P 500 e-minis were down 26.25 points, or 0.67%, and Nasdaq 100 e-minis were down 133.75 points, or 1.12%.

Among other stocks, Walt Disney (NYSE:DIS) Co slid 4.8% after its second-quarter revenue and profit fell short of estimates and the entertainment giant cautioned supply chain disruptions and rising wages could pressure finances.

Plant-based protein maker Beyond Meat (NASDAQ:BYND) Inc slumped 24.2% and was on track to open below its IPO price as quarterly losses ballooned.

Rivian Automotive Inc rose 2.7% after the electric-vehicle maker maintained its 2022 production target of 25,000 units.