U.S. stock index futures slipped on Tuesday on concerns over risks from rising inflation and the Federal Reserve's plan to further raise interest rates, while Kohl's Corp rose on news about a potential sale.

Shares of the department store chain jumped 13.6% in premarket trading as it entered exclusive talks with retail store operator Franchise Group Inc over a potential sale that would value it at nearly $8 billion.

Megacap growth stocks retreated, pressured by U.S. Treasury yields, which hovered near 3-1/2-week highs ahead of inflation data on Friday. Tesla Inc fell 1.4% and Microsoft Corp 0.8%.

A hot reading on the consumer price index could bolster expectations that the Fed will continue to aggressively hike rates in the second half of this year, at a time when labor market is buoyant and consumers spending remain resilient.

Money markets are expecting 50-basis points rate increases next week and in July, and possibly in September too.

"There is quite a bit of uncertainty at the moment in terms of inflation and the growth outlook and until investors have a better idea of how high interest rates will go, equities are likely to struggle," said Raffi Boyadjian, lead investment analyst at brokerage XM.

World shares also fell as a surprise 50-basis-point rate increase in Australia raised concern over policy tightening, while oil prices hovered just below $120 a barrel on expected recovery in China demand.

U.S. stocks ended a choppy session slightly higher in the previous session, helped by gains in Amazon.com Inc and other megacap growth shares.

At 6:29 a.m. ET, Dow e-minis were down 172 points, or 0.52%, S&P 500 e-minis were down 25.5 points, or 0.62%, and Nasdaq 100 e-minis were down 107.75 points, or 0.85%.

The CBOE volatility index rose for the third straight day and was last up at 25.64 points.

(Reporting by Devik Jain in Bengaluru; Editing by Arun Koyyur)