The Nasdaq logo is displayed at the Nasdaq Market site in Times Square in New York, U.S., December 3, 2021. REUTERS/Jeenah Moon

Jan 18 (Reuters) – Wall Street’s major indexes fell on Tuesday as big tech stocks were criticized by rising Treasury yields, while Goldman Sachs led the decline among banks after reporting its lower quarterly profit expectations to.

Two-year Treasury yields, which track short-term rate expectations, crossed 1% for the first time since February 2020 as traders positioned themselves for a more hawkish Federal Reserve ahead of a policy meeting next week .

Megacap companies including Google’s Alphabet (GOOGL.O), Apple (AAPL.O), Meta (FB.O), Amazon and Tesla (TSLA.O) fell between 0.6% and 3.7%.

Ten of the 11 major S&P 500 sectors fell in early trading, with the high-growth S&P 500 technology (.SPLRCT) and S&P 500 communications services (.SPLRCL) indexes leading the losses.

“Technology is going to be divided between companies that are making money today and companies that promise to make money tomorrow,” said Thomas Hayes, managing member of Great Hill Capital LLC in New York.

“Companies that promise to make money tomorrow but don’t make money today are going to get a big haircut.”

Goldman Sachs (GS.N) plunged 8.0% after missing fourth-quarter earnings expectations on weak trading activity, while BNY Mellon (BK.N) lost 1.1% after publishing its quarterly results. Read more

The S&P 500 Banks Index (.SPXBK) fell 1.2%, while the broader Financials Index (.SPSY) fell 1.6%.

Energy (.SPNY) was the only S&P 500 sector in the dark on Tuesday as oil prices edged higher.

As of 9:53 a.m. ET, the Dow Jones Industrial Average (.DJI) was down 553.58 points, or 1.54%, at 35,358.23, the S&P 500 (.SPX) was down 68.82 points, or 1.48%, to 4,594.03, and the Nasdaq Composite (.IXIC) was down 253.06 points, or 1.70%, to 14,640.69.

A monthly survey by Deutsche Bank found a majority of respondents believe US tech stocks are in a bubble as investors remain more bearish on hawkish policy measures and rising yields. Read more

Later in the week, a U.S. Senate panel is also expected to debate a bill aimed at curbing app stores from companies that some lawmakers say exert too much control over the market, including Apple and Google. Alphabet. Read more

The Nasdaq (.IXIC) and S&P 500 (.SPX) fell for a second consecutive week on Friday as bearish tech sentiment and disappointing results from big banks weighed on U.S. indices, leading to a soft start earnings season.

Bank of America (BAC.N) and Morgan Stanley (MS.N) will release their fourth-quarter results on Wednesday, while Netflix will launch reports on big tech stocks on Thursday.

Activision Blizzard (ATVI.O) jumped 29.7% after Microsoft said it would buy the video game maker for $68.7 billion in cash, the biggest deal in the industry.

Shares of Microsoft (MSFT.O) fell 1.3%, while fellow gaming stocks Electronic Arts (EA.O), Roblox (RBLX.N) and Take-Two Interactive (TTWO.O) gained between 0.7% and 7.3%. Read more

Airbnb (ABNB.O) fell 3.4% after Gordon Haskett cut shares of the home rental company to “hold”.

Falling issues outnumbered advances by a 3.96-to-1 ratio on the NYSE and by a 3.87-to-1 ratio on the Nasdaq.

The S&P index recorded 30 new 52-week highs and six new lows, while the Nasdaq recorded 54 new highs and 259 new lows.

Reporting by Bansari Mayur Kamdar, Shreyashi Sanyal, Sruthi Shankar in Bengaluru and Danilo Masoni in Milan; Editing by Maju Samuel

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