The
tech-heavy Nasdaq had a volatile start to February after
Facebook owner Meta Platforms lost $200 billion from its market
value on disappointing results last week, while Amazon.com Inc
gained just as much on plans of hiking its Prime subscription
rate.
Peloton Interactive Inc jumped 22.6% on news that Amazon and
Nike are exploring a potential buyout offer for the exercise
bike maker.
Hasbro Inc gained 2.2% in premarket trading after beating
analysts' estimates for quarterly revenue, bolstered by a
rebound in the toymaker's television production business and
demand for its collectible card game "Magic: The Gathering".
Frozen and refrigerated food maker Tyson Foods Inc rose 0.8%
ahead of its results later in the day.
Of the 278 companies in the S&P 500 that have posted earnings as
of Friday, 78.4% reported above analysts' expectations,
according to Refinitiv.
An unexpectedly strong jobs report last week raised concerns
about aggressive policy tightening by the U.S. Federal Reserve
ahead of key inflation data for January that is due on Thursday.
Markets are now pricing in a one-in-three chance the Fed might
hike by a full 50 basis points in March and the prospect of
rates reaching 1.5% by year end. [FEDWATCH]
At 6:18 a.m. ET, Dow e-minis were down 87 points, or 0.25%, S&P
500 e-minis were down 9.75 points, or 0.22%, and Nasdaq 100
e-minis were down 25.25 points, or 0.17%.
Despite the earnings-driven seesaw in technology stocks, all
three major stock indexes ended their first week of February
higher.
Market liquidity, or how easily investors can buy or sell a
security without affecting its price, in U.S. stocks has fallen
to levels last seen during the COVID-19 selloff two years ago,
adding to volatility in an already-nervous market.
( The story corrects first paragraph to say 'Peloton jumped on
reports of interest from potential buyers')
(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Maju
Samuel)
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