Tech stocks set to slump again, as Nasdaq-100 futures drop 1% – MarketWatch

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U.S. stock futures pointed to a drop at the open, with the technology sector on track for a tumble for a second straight session.

Futures for the tech-heavy Nasdaq-100 index NQM7, -0.91%  fell by 56 points, or 1%, to 5,692.25. S&P 500 futures  ESM7, -0.23% gave up 6.30 points, or 0.3%, to 2,422, while Dow Jones Industrial Average futures YMM7, -0.11%  shed 38 points, or 0.2%, to 21,169.

“All eyes will be on the U.S. tech giants when the U.S. stock markets open later today,” said Kathleen Brooks, research director at City Index, in a note.

“A second session of hefty losses for the Nasdaq and U.S. tech sector XLK, -2.47%  could spook the markets this week, so if we don’t get a recovery then we may see a broader decline in growth assets,” she added.

On Friday, the S&P SPX, -0.08%  edged down by 0.1% and the Dow DJIA, +0.42%  gained 0.4%, but the Nasdaq Composite COMP, -1.80%  lost 1.8%, with its sharp pullback coming after big recent gains for heavyweight tech stocks. The selloff also followed a warning from Goldman Sachs analysts that highfliers such as Facebook Inc. FB, -3.30%  , Amazon.com Inc. AMZN, -3.16%  , Apple Inc. AAPL, -3.88%  , Microsoft Corp. MSFT, -2.27%  and Google parent Alphabet Inc. GOOG, -3.41% GOOGL, -3.40% may be overextended.

Economic news: May data on the U.S. federal budget is due at 2 p.m. Eastern Time.

As the week kicks off, investors are also focused on the Federal Reserve, which on Wednesday is widely anticipated to deliver an interest-rate hike.

Check out: MarketWatch’s Economic Calendar

Individual movers: Shares in Apple traded nearly 2% lower in premarket action following a downgrade to neutral from buy by Mizuho Securities analysts.

It’s the second time in a week that the gadgets giant has been downgraded, with the more bearish view once again stemming from concerns that optimism over the iPhone 8 has been baked into the stock.

Tech names Nvidia Corp. NVDA, -6.46% and Applied Materials Inc. AMAT, -5.67%  were also among the S&P 500’s biggest premarket losers, with each stock down by more than 2%.

Other markets: Oil futures CLN7, +0.35%  were modestly higher, while European equities SXXP, -0.79% pulled back. Asian markets closed with losses, as the tech selloff spread to those exchanges. Gold futures GCQ7, +0.04%  were lower, and a key dollar index DXY, -0.15% also was down.

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