Nasdaq futures tumble as rising yields spark tech rout



(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.)

* Megacap tech stocks lead declines

* Starbucks falls on partnering with Meituan

* Goldman Sachs earnings eyed

* Futures down: Dow 0.69%, S&P 1.07%, Nasdaq 1.70%

By Bansari Mayur Kamdar

Jan 18 (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 US2YT=RR , which track short-term rate expectations, crossed 1% for the first time since February 2020.

U.S.-listed megacap tech companies including Google's Alphabet GOOGL.O , Apple AAPL.O , Meta FB.O , Amazon AMZN.O and Microsoft MSFT.O 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 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 .IXIC and the S&P 500 .SPX 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 .SPLRCT has declined 4.8% so far since the start of 2022.

At 6:47 a.m. ET, Dow e-minis 1YMcv1 were down 246 points, or 0.69%, S&P 500 e-minis EScv1 were down 49.75 points, or 1.07%, and Nasdaq 100 e-minis NQcv1 were down 264.5 points, or 1.7%.

Among banks, Goldman Sachs GS.N reports later in the day and Bank of America BAC.N and Morgan Stanley MS.N will post their fourth-quarter results on Wednesday. Netflix NFLX.O will kick-off reporting among big tech shares on Jan. 20.

Starbucks SBUX.O 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 ABNB.O dropped 3.8% after Gordon Haskett cut the home rental firm's shares to "hold" and lowered its target price.
Reporting by Bansari Mayur Kamdar, Shreyashi Sanyal, Sruthi Shankar in Bengaluru and Danilo Masoni in Milan; Editing by Maju Samuel

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.