Tech tumble, lackluster GS earnings set to weigh on Wall Street



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* Megacap tech stocks lead declines

* Goldman Sachs leads fall among banks after Q4 results

* Gaming stocks soar on Microsoft's big bid for Activision

* Futures down: Dow 0.82%, S&P 0.96%, Nasdaq 1.48%

By Bansari Mayur Kamdar

Jan 18 (Reuters) - Wall Street's main indexes were set to open lower on Tuesday as technology stocks were slammed by rising Treasury yields, while Goldman Sachs led declines among big banks after posting its quarterly profit below expectations.

Two-year Treasury yields US2YT=RR , which track short-term rate expectations, crossed 1% for the first time since February 2020 amid traders positioning for a more hawkish Federal Reserve ahead of a policy meeting next week.

Megacap firms including Google's Alphabet GOOGL.O , Apple AAPL.O , Meta FB.O , Amazon AMZN.O and Microsoft MSFT.O fell between 1% and 2.5% in premarket trading.

"Tech is going to be bifurcated between the companies that are earning money today versus the companies that are promising to earn money tomorrow," said Thomas Hayes, managing member at Great Hill Capital LLC in New York.

"The companies that are promising to earn money tomorrow but not earning today are going to take big haircuts."

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.

Goldman Sachs GS.N fell 4.2% after missing fourth-quarter profit expectations on weak trading activity, while BNY Mellon BK.N inched up 0.2% after posting quarterly results.

Other lenders including Bank of America BAC.N , Morgan Stanley MS.N , Citigroup C.N and JPMorgan JPM.N were down up to 1.6%.

At 8:37 a.m. ET, Dow e-minis 1YMcv1 were down 292 points, or 0.82%, S&P 500 e-minis EScv1 were down 44.75 points, or 0.96%, and Nasdaq 100 e-minis NQcv1 were down 231.25 points, or 1.48%.

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.

The Nasdaq .IXIC and the S&P 500 .SPX fell for a second straight week on Friday as bearish sentiment on tech and disappointing results from big banks weighed on the U.S. indexes made for a soft start to earnings season.

The S&P technology index .SPLRCT has declined 4.8% so far since the start of 2022.

Bank of America and Morgan Stanley will post fourth-quarter results on Wednesday, while Netflix NFLX.O will kick-off reporting among big tech shares on Thursday.

In M&A news, Activision Blizzard ATVI.O gained 37.6% after Microsoft said it would buy the videogame publisher for $68.7 billion in cash, the largest deal in the sector. Microsoft's shares MSFT.O declined 1.8%, while other gaming stocks Electronic Arts EA.O and Take-Two Interactive TTWO.O gained 6.6% and 3.6% respectively.

Starbucks SBUX.O fell 0.9% on partnering with China's dominant food delivery firm, Meituan, to expand its reach in the second-biggest market globally.

Airbnb ABNB.O dropped 3.9% 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

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