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(Reuters) – U.S. stock index futures fell on Monday after a week of volatile trading spurred on by mixed quarterly results from Big Tech, while Peloton jumped on reports of interest from potential buyers including e-commerce giant Amazon.
The tech-heavy Nasdaq had a volatile start to February after Facebook (NASDAQ:FB) owner Meta Platforms lost $200 billion from its market value on disappointing results last week, while Amazon.com Inc (NASDAQ:AMZN) gained just as much on plans of hiking its Prime subscription rate.
Peloton Interactive (NASDAQ:PTON) Inc jumped 22.6% on news that Amazon and Nike (NYSE:NKE) are exploring a potential buyout offer for the exercise bike maker.
Hasbro Inc (NASDAQ:HAS) gained 2.2% in premarket trading after beating analysts’ estimates for quarterly revenue, bolstered by a rebound in the toymaker’s television production business and demand for its collectible card game “Magic: The Gathering”.
Frozen and refrigerated food maker Tyson Foods Inc (NYSE:TSN) rose 0.8% ahead of its results later in the day.
Of the 278 companies in the S&P 500 that have posted earnings as of Friday, 78.4% reported above analysts’ expectations, according to Refinitiv.
An unexpectedly strong jobs report last week raised concerns about aggressive policy tightening by the U.S. Federal Reserve ahead of key inflation data for January that is due on Thursday.
Markets are now pricing in a one-in-three chance the Fed might hike by a full 50 basis points in March and the prospect of rates reaching 1.5% by year end. [FEDWATCH]
At 6:18 a.m. ET, Dow e-minis were down 87 points, or 0.25%, S&P 500 e-minis were down 9.75 points, or 0.22%, and Nasdaq 100 e-minis were down 25.25 points, or 0.17%.
Despite the earnings-driven seesaw in technology stocks, all three major stock indexes ended their first week of February higher.
Market liquidity, or how easily investors can buy or sell a security without affecting its price, in U.S. stocks has fallen to levels last seen during the COVID-19 selloff two years ago, adding to volatility in an already-nervous market.
( The story corrects first paragraph to say ‘Peloton jumped on reports of interest from potential buyers’)
