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(Reuters) -Futures tracking the technology-heavy Nasdaq 100 index slumped almost 2% on Tuesday as traders returned from a long holiday weekend to position for a more hawkish Federal Reserve ahead of a policy meeting next week.
Rate-sensitive tech stocks came under pressure as two-year Treasury yields, which track short-term rate expectations, crossed 1% for the first time since February 2020. [US/]
U.S.-listed megacap tech companies including Google’s Alphabet (NASDAQ:GOOGL), Apple (NASDAQ:AAPL), Meta, Amazon (NASDAQ:AMZN) and Microsoft (NASDAQ:MSFT) were last down between 1.5% and 2.4% in premarket trading.
Later in the week, a U.S. Senate panel is also set to debate a bill that aims to rein in app stores of companies that some lawmakers say exert too much market control, including Apple and Alphabet’s Google.
A monthly survey conducted by Deutsche Bank (DE:DBKGn) found that a majority of respondents believed U.S. technology stocks are in a bubble as investors remained more bearish on hawkish policy moves and higher yields.
The Nasdaq and the S&P 500 fell for a second straight week as bearish sentiment on tech and disappointing results from big banks weighed on the U.S. indexes just as the earnings season kicked off.
The S&P technology index has declined 4.8% so far since the start of 2022.
At 6:47 a.m. ET, Dow e-minis were down 246 points, or 0.69%, S&P 500 e-minis were down 49.75 points, or 1.07%, and Nasdaq 100 e-minis were down 264.5 points, or 1.7%.
Among banks, Goldman Sachs (NYSE:GS) reports later in the day and Bank of America (NYSE:BAC) and Morgan Stanley (NYSE:MS) will post their fourth-quarter results on Wednesday. Netflix (NASDAQ:NFLX) will kick-off reporting among big tech shares on Jan. 20.
Starbucks (NASDAQ:SBUX) fell 1.2% in premarket trading on partnering with China’s dominant food delivery firm, Meituan, to expand its reach in the second-biggest market globally.
Airbnb dropped 3.8% after Gordon Haskett cut the home rental firm’s shares to “hold” and lowered its target price.
