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* Kohl's falls on full-year forecast cut
* Canada Goose jumps on upbeat profit outlook
* Futures down: Dow 1.14%, S&P 1.15%, Nasdaq 1.17% (Adds comment, details; updates prices)
By Devik Jain and Amruta Khandekar
May 19 (Reuters) - U.S. stock indexes were set to open sharply lower on Thursday after the S&P 500's biggest rout this year as investors fretted over the impact of surging inflation on the economy and corporate earnings.
Kohl's Corp shares tumbled 7.7% in premarket trading after the department store chain cut its full-year profit forecast, the latest U.S. retailer to flag a hit from four-decades high inflation.
On Wednesday, the S&P 500 index and the Nasdaq closed down more than 4% as growth stocks sank and dismal results from retailer Target Corp underscored how inflation is impacting consumers' purchasing power.
"The consumer component is now starting to weaken, which bolsters the perspective that we are indeed heading into a recession," said Randy Frederick, managing director of trading and derivatives for Charles Schwab in Austin, Texas.
Consumer spending accounts for more than two-thirds of U.S. economic activity.
The S&P 500 is down 18.2% from its record close on Jan. 3 and a close below 20% will confirm bear market territory, joining its tech-heavy peer Nasdaq.
Stock markets have sold off this year as investors adjust to tightening financial conditions with the U.S. Federal Reserve raising rates to tame surging prices.
"The central worry facing investors right now is how the Federal Reserve will or will not be able to tame inflation without causing a recession," Ryan Belanger, managing principal and founder of Claro Advisors said in a note.
"Investors should become accustomed to significant downside and upside moves in stocks, which is common during times of tremendous uncertainty."
Goldman Sachs strategists estimated a 35% probability of the U.S. economy entering a recession in the next two years, while Wells Fargo Investment Institute has said it expects a mild U.S. recession at the end of 2022 and early 2023.
Megacap tech and growth shares such as Apple Inc, Microsoft Corp, Amazon.com, Alphabet Inc and Tesla Inc slipped between 1% and 1.7%.
Morgan Stanley dipped 1.4% to lead declines among the big banks.
At 8:43 a.m. ET, Dow e-minis were down 358 points, or 1.14%, S&P 500 e-minis were down 45.25 points, or 1.15%, and Nasdaq 100 e-minis were down 140 points, or 1.17%.
The CBOE volatility index, also known as Wall Street's fear gauge, rose to 32.18 points, its highest since May 12.
Among other stocks, Cisco Systems Inc slumped 10.6% as the networking gear maker lowered its 2022 revenue growth outlook due to China lockdowns and the Ukraine conflict.
In a bright spot, Canada Goose Holdings Inc jumped 13% after it forecast upbeat annual earnings, encouraged by strong demand for its luxury parkas and jackets.
BJ's Wholesale Club Holdings gained 6.9% after it topped first-quarter results estimates, helped by strength in its digital business.
(Reporting by Devik Jain in Bengaluru; Editing by Shounak Dasgupta and Sriraj Kalluvila)