Jan 18, 2022 07:15AM ET
By: AnalysisWatch
Futures tracking the technology-heavy Nasdaq 100 index slumped nearly 2% on Tuesday as traders returned from a long holiday weekend to brace for a tighter stance by the US Federal Reserve ahead of a meeting next week.
Interest-rate-sensitive tech stocks came under pressure as two-year government bond yields, which reflect short-term interest rate expectations, rose above 1% for the first time since February 2020.
In pre-market trading, US-listed mega-cap tech companies, including Google Alphabet, Apple, Meta, Amazon, and Microsoft, were last down between 1.5% and 2.4% in pre-market trading.
Later in the week, a US Senate panel will debate a bill aimed at curbing the app stores of companies that some lawmakers say exert too much market control, including Alphabet's Apple and Google.
A monthly survey by Deutsche Bank found that the majority of respondents believe US tech stocks are in a bubble as investors remain bearish on restrictive policies and higher yields.
The Nasdaq and S&P 500 fell for the second week in a row as negative sentiment toward technology and disappointing results from major banks weighed on US indices just before earnings season began.
Since the start of 2022, the S & P technology index has fallen 4.8%.
The Dow e-minis fell 246 points or 0.69%, the S & P 500 e-minis fell 49.75 points or 1.07%, and the Nasdaq 100 e-minis fell at 6:47 a.m. ET by 264.5 points, or 1.7%.
Among banks, Goldman Sachs reports later in the day, and Bank of America and Morgan Stanley will release their fourth-quarter results on Wednesday. Netflix will kick off coverage among major tech stocks on January 20.