Tech stocks fell hard on the eve of US CPI report

All major indices fell overnight on inflation fears, with tech and growth stocks the major losers.

The US Labour Department will release its inflation report on Wednesday, US time.

The Dow Jones index fell 0.1%, and the S&P500 was down 1.04%.

Tech heavy NASDAQ fell sharply by 2.55%, suffering its worst drop since March.

The FAAMG (Facebook, Apple, Amazon, Microsoft, Google) stocks all fell hard between 2% to 3.5%.

Elsewhere, iron ore prices are surging to a new all time high. The metal rose by almost 9% to $US230.56 a tonne.

In cryptos, Bitcoin dipped from US$58,200 level yesterday to trade at US$56,000 level at 8am AEDT. Ethereum meanwhile, has broken the US$4000 level only a week after it crossed US$3000.

Closer to home

The ASX 200 index closed firmly at record highs on Monday, rising by 1.20 per cent, on the eve of today’s Federal Budget.

On focus in the Budget will be things like infrastructure, tax breaks for low and middle-income earners, and childcare.

Aged care and the digital economy will also be two sectors that are expected to get significant federal funding.

In big caps news, investment company Seven Group (ASX:SVW) has made a move to take over all of Boral (ASX:BLD) shares.

Seven already owns around 23 per cent of the constructions materials company, but now wants to buy the rest of the shares at $6.50. The Boral share price also closed at $6.50, and its board has asked shareholders to reject the offer.

5 ASX small caps to watch today

Icetana (ASX:ICE)
SaaS company Icetana announced that its largest customer has transitioned its Middle East shopping mall contract to an annual recurring revenue model. The existing service contract has been amended to US$350,000 per annum in recurring licence fees. The company says expansion opportunities persist with the client.

Alta Zinc (ASX:AZI)
The exploration company advised that a geophysical survey has identified significant new drill targets at Gorno. Alta Zinc says the survey outlined a significant chargeability response over an area 750m (NS) by 250m (EW), which extends the Gorno mine exploration footprint significantly.

European Lithium (ASX:EUR)
The company has entered into a collaboration agreement with Jadar Resources (ASX:JDR), and acquired a 20% interest in its Austrian Lithium Projects. The company said the proximity of the Weinebene and Eastern Alps Projects to European Lithium’s Wolfsberg Project creates optionality and potential synergistic development and production scenarios for both parties.

NickelX (ASX:NKL)
Following the recent $7m IPO and ASX listing, NickelX has now commenced exploration activities at the Biranup Project, located in the Albany Fraser Orogen. Geophysical data re-processing has identified new good quality conductivity anomaly targets at the Fire Dragon nickel target, which will be immediately followed up with close spaced Moving Loop Electromagnetic (MLEM) surveys.

Incannex (ASX:IHL)
The medicinal cannabis company announced that the University of Western Australia Centre for Sleep Science has been engaged as an additional site for the ongoing Phase IIb trial investigating the effect of IHL-42X in adults diagnosed with obstructive sleep apnoea.