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* Futures off: Dow 0.71%, S&P 500 1.34%, Nasdaq 2.25%

June 23 (Reuters) - Contracts tracking the tech-heavy Nasdaq

fell 2%, leading declines among Wall Street futures on Tuesday,

as concerns around imminent rate hikes in the United States and

debt-backed corporate spending on AI weighed on investor

sentiment.

Stocks across the globe, including those in Europe and Asia,

came under pressure following a selloff on Wall Street in the

previous session, while crude oil and precious metals also fell.

The weakness in U.S. artificial intelligence-related stocks

is likely to persist as investors worry about ballooning

valuations at a time when elevated borrowing costs could make AI

spending more costly.

At 03:33 a.m. ET, Dow E-minis were down 372 points,

or 0.71%, S&P 500 E-minis were down 101.25 points, or

1.34%, Nasdaq 100 E-minis were down 693.25 points, or

2.25%.

Traders expect the Federal Reserve to hike borrowing costs

by a total of 50 basis points by December, according to the CME

Group's FedWatch Tool, up from one 25 basis point hike two weeks

ago, as investors price in hawkish monetary policy under new

Chair Kevin Warsh.

The yield on the short-term 2-year Treasury note

slipped about 4 bps to 4.19%, after touching a four-month high

on Monday.

Investors have been concerned about elevated valuations of

AI-related stocks following a strong rally earlier this quarter

in the aftermath of the Middle East ceasefire.

Chip stocks advanced on Monday, with the Philadelphia SE

Semiconductor Index hitting a record high. Micron's

results on Wednesday could offer some clues into the

outlook for memory and AI chips.

Elon Musk's SpaceX was the latest megacap to turn

to the bond market, following a blockbuster IPO earlier this

month, despite logging net losses the year before. The stock

lost 16% on Monday, while shares of Alphabet, Meta

, Microsoft ( MSFT ) and Amazon.com ( AMZN ) also fell

sharply.

Investors are keeping a wary eye on developments in the

Middle East after the U.S. waived sanctions on Iran for 60 days

after the first round of talks under a nascent peace deal, with

President Donald Trump saying he will "do what I have to do" if

Iran does not stick to its side of the agreement.

Later in the day, focus will be on a batch of private

surveys on business activity for the month of June, ahead of the

crucial Fed-preferred inflation report - the Personal

Consumption Expenditures Index - due on Friday. Economists

expect the price index to touch 4.1%, more than twice the

central bank's target.

(Reporting by Johann M Cherian in Bengaluru; Editing by Mrigank

Dhaniwala)