FAANG shares are listed on the Nasdaq.
Adam Jeffery | CNBC
Stock futures fell Tuesday as investors continued to drop technology stocks.
The futures for the tech-heavy Nasdaq-100 lost 1.3%. S&P 500 futures traded 0.8% lower while the Dow-linked futures fell 195 points.
Big Tech stocks were again in the red on Tuesday. Facebook, Apple and Amazon lost more than 1.5% in premarket retail.
Tesla shares fell nearly 4% in premarket trading as Reuters reported that the electric car maker and growth had halted plans to expand its Shanghai plant into an export hub.
Big tech was overwhelmed on Monday as investors left stocks like Apple and Microsoft, pulling the Dow Jones Industrial Average and S&P 500 from record highs. Both stocks lost at least 2% at the start of the week.
The Nasdaq Composite suffered from poorer sales and fell 2.5%. With that, he ended the day at his session low on Monday. Facebook lost more than 4% while Amazon and Netflix both fell over 3%. Alphabet fell more than 2% after being downgraded by Citigroup. Cathie Wood’s Ark Innovation ETF fell 5% to its lowest level since November when Tesla, its top position, lost more than 6%.
The ARK Innovation ETF lost another 3% in premarket trading on Tuesday.
The market was split in May, with the Nasdaq Composite down 4% and the Dow 2.5% as investors move away from relatively high-valued growth stocks to value stocks on the back of the economy reopening due to the pandemic and higher inflation will benefit.
The Technology Select SPDR (XLK) was down 3% in May, the worst of any market sector. The XLK fell another 1.3% on the Tuesday before trading.
The broader S&P 500 managed to barely stay in the green in May amid this market rotation, but it may lose that profit if tech sales rise and value stocks persist.
The Simon Property Group recorded a price decline of around 3% on the pre-market, despite better-than-expected figures. The property manager reported earnings of $ 1.36 per share on revenue of $ 1.15 billion for the first quarter.
Electronic Arts, Chesapeake Energy, Hanesbrands and Palantir Technologies will deliver results on Tuesday.
The Ministry of Labor will release the latest results of its survey on job vacancies and turnover on Tuesday. Several senior officials from the Federal Reserve, including Governor Lael Brainard and New York Fed President John Williams, are also due to make comments.
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