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.
U.S.-listed megacap tech companies including Google's Alphabet, Apple, Meta, Amazon and Microsoft were last down between 1.5% and 2% in premarket trading.
At 7:50 a.m. ET, Dow e-minis were down 285 points, or 0.80%, S&P 500 e-minis were down 48.25 points, or 1.04%, and Nasdaq 100 e-minis were down 251.00 points, or 1.61%.
Stocks making the biggest moves premarket:
Goldman Sachs(GS) – Goldman Sachs fell 4.1% in the premarket after reporting a mixed fourth quarter. Goldman earned $10.81 per share for the quarter, compared with a consensus estimate of $11.76, although revenue beat analyst forecasts.
Unilever(UL) - Unilever tumbled 9.9% in premarket action after the consumer products company made a $68 billion bid for GlaxoSmithKline’s (GSK) consumer health business. That bid was the third in a series of offers to acquire the unit, but all were rejected by Glaxo as undervaluing the business. GlaxoSmithKline shares jumped 2.5%.
Gap(GPS) – Gap tumbled 5.8% in premarket trading after Morgan Stanley downgraded the apparel retailer’s stock to “underweight” from “equal-weight,” saying it expects margins for Gap and other mall-based specialty retailers to revert back to the declining path seen pre-pandemic.
Airbnb(ABNB) – Airbnb dropped 3.4% after Gordon Haskett cut the home rental firm's shares to "hold" and lowered its target price.
Credit Suisse(CS) – Credit Suisse chairman Antonio Horta-Osorio resigned after he reportedly violated Covid-19 protocols on multiple occasions. Horta-Osorio’s departure comes after just eight months with the bank. Credit Suisse fell 3.4% in premarket trading.
Kohl’s(KSS) – Activist investor Macellum Advisors is renewing its push for the retailer to increase shareholder value. Macellum holds a roughly 5% stake in Kohl’s, and is telling Kohl’s that it either needs to change its board or hire bankers to explore a possible sale or other transaction. Kohl’s rose 1% in the premarket.
Citrix Systems(CTXS) – Citrix jumped 2.8% in premarket trading following a Bloomberg report saying Elliott Investment Management and Vista Equity Partners were in advanced talks to buy the software company.
Peloton(PTON) – Peloton will begin charging for setup and delivery of its bicycles and treadmills starting January 31, services that had previously been included in the sales price. Peloton will charge $250 for setup and delivery of its bicycles and $350 for its treadmills. The stock fell 1.8% in premarket trading.
23andMe(ME) – The genetic testing company’s shares initially rallied 6% in the premarket after announcing that drug makerGlaxoSmithKlinehad exercised its option to extend a partnership with 23andMe. The company will receive a one-time $50 million payment as part of that agreement. The stock subsequently lost its gains and fell 4.3%.
Houghton Mifflin Harcourt(HMHC) – The stock surged 8.4% in the premarket following a Bloomberg report said the education materials publisher is exploring a possible sale of the company. The stock rose 4.5% Friday after the report first surfaced.