The Nasdaq led declines among U.S. stock index futures on Friday as big technology-related shares tumbled, reeling from the Federal Reserve’s decision move to end its pandemic-era stimulus faster, which pushed investors towards cyclical parts of the market.
Growth stocks including Tesla Inc, Apple Inc , Meta Platforms, Amazon.com Inc and Microsoft Corp fell between 0.5% and 1.3%, leading premarket declines.
An announcement from the Fed this week signaled three quarter-percentage-point interest rate hikes by the end of 2022 to combat surging inflation, buoying economically sensitive parts of the market but put pressure on heavyweight tech stocks.
The Nasdaq index is now set to end the week 2.8% lower, while the S&P 500 tracked declines of 0.9%.
Still, most heavyweight growth stocks have outperformed the broader market in 2021, with chipmakers taking the lead as the Philadelphia SE Semiconductor index gained 34.7%, while the benchmark S&P 500 index added 24.3% in the same period.
Value-oriented stocks such as banks gained before the opening bell. Bank of America, Citigroup and JPMorgan Chase & Co rose about 0.4% each.
Global stocks also retreated on Friday on concerns about the fast-spreading Omicron variant of the coronavirus, which has impacted global trading sentiment since late November.
At 6:55 a.m. ET, Dow e-minis were down 42 points, or 0.12%, S&P 500 e-minis were down 14.5 points, or 0.31%, and Nasdaq 100 e-minis were down 115.5 points, or 0.73%.
The simultaneous expiration of stock options, stock index futures and index options contracts later in the day, known as triple witching, is expected to cause volatility through the trading session.
Oracle slipped 3.3% after a report said the enterprise software maker is in talks to buy electronic medical records company Cerner in a deal that could be valued at $30 billion. Shares of Cerner surged 18.9%.
FedEx Corp rose 5.7% after the delivery firm reinstated its original fiscal 2022 forecast on Thursday, even as persistent labor woes chipped away profits. Shares of peer United Parcel Service also gained 2.1%. (Reporting by Shreyashi Sanyal in Bengaluru; Editing by Maju Samuel)