(Reuters) – U.S. Stock Index Futures fell on Tuesday due to concerns about rising inflation and Federal Reserve’s plans for further raising interest rates. Kohl’s Corp (NYSE 🙂 rose in response to news of a possible sale.

As the retailer entered into exclusive discussions with Franchise Group, NASDAQ: Inc regarding a potential sale of its department stores that could bring it to nearly $8 billion (or 13.6%), shares rose 13.6% during premarket trading.

The U.S. Treasury yields, hovering near the 3-1/2 week highs before Friday’s inflation data, pushed megacap growth stocks down. Tesla (NASDAQ) Inc declined 1.4% Microsoft Corp (NASDAQ:) 0.8%.

An increase in consumer prices could boost expectations of the Fed raising rates aggressively during the second half this year. This is a time when the labor market remains buoyant, and consumers are still resilient.

The money markets expect 50-basis point rate increases in the coming week, July and September.

Raffi Boyadjian is the lead investment analyst for brokerage XM. He stated that there was a lot of uncertainty about inflation and growth prospects at the moment and that investors will need to have a better understanding of the future interest rate.

The world shares fell after a surprising 50-basis point rate hike in Australia. This raised concerns about policy tightening. Meanwhile, oil prices hovered below $120 per barrel in light of the expected recovery in China demand.

U.S. stocks closed a volatile session slightly lower than the previous session due to gains in Amazon.com Inc. (NASDAQ:) as well as other megacap growth shares.

At 6:29 a.m. ET were down by 172 points or 0.52%. They were also down 25.5 points or 0.62% and down 107.75 point, or 0.85%.

CBOE’s volatility index increased for the third consecutive day, and last reached 25.64 points.