Nasdaq slides 1% as chipmaker Micron's warning rekindles tech rout

Micron falls on lowered revenue forecast; semiconductor stocks drop for third session, down 27.3% YTD; Novavax falls 29% after cutting revenue view by half

The tech-heavy Nasdaq fell on Tuesday after a dismal forecast from Micron Technology dragged chip and technology stocks lower, while markets remained on the edge ahead of inflation data that will feed into the U.S. Federal Reserve's rate-hike plans.

A high inflation print on Wednesday, following last week's strong jobs numbers, will likely push the Fed to continue with aggressive rate hikes and weigh on a recent recovery in stocks.

Traders see a 70% chance of the Fed raising interest rates by 75 basis points in September, its third such big hike.

Adding to concerns around a tight labor market and inflation, data