After posting a loss in the previous quarter, the benchmark S&P 500 index has gained 5.7% so far this week as yields fell for two straight sessions on softer U.S. economic data, UK's tax turnaround and Australia's smaller-than-expected rate hike.

But as traders reassessed their positions based on how aggressively they expect the Federal Reserve will raise rates, yields on the 10-year Treasury note rose sharply.

Rate-sensitive technology and related stocks like Nvidia Corp., Amazon.com, Apple Inc. and Alphabet Inc. fell between 0.7% and 0.9% in premarket trading.

Twitter Inc. also lost momentum in line with its peers, a day after surging 22% after billionaire Elon Musk decided to proceed with his original $44-billion bid to take the social media company private.

Banks such as Citigroup and JPMorgan Chase & Co. slipped more than 1% each.

Investors awaited the ADP's private payrolls report, the S&P services PMI data and ISM's non-manufacturing PMI for clues on the strength of the U.S. economy and labor market.

Investors are also keeping a close watch on comments on inflation from the Fed's Atlanta President Raphel Bostic, especially as several policymakers are already sticking to an aggressive monetary policy to battle price pressures.

At 06:43 a.m. ET, Dow e-minis were down 223 points, or 0.73%, S&P 500 e-minis were down 27.25 points, or 0.72%, and Nasdaq 100 e-minis were down 82 points, or 0.7%.

Emerson Electric Co gained 2.2% after a media report that the manufacturing giant is in talks with U.S. buyout firm Blackstone Inc to sell part of its commercial and residential solution business assets.

Shares of U.S.-listed Chinese companies including Alibaba Group and JD.com were up between 1.5% to 3.2%, tracking a jump in their Hong Kong counterparts.