By Bansari Mayur Camdar

(Reuters) – Wall Street’s major indexes opened lower Tuesday morning as tech stocks suffered from rising Treasury yields. Goldman Sachs (NYSE) was the leader among large banks, with declines after it posted a quarterly loss below its expectations.

In anticipation of the Federal Reserve’s next policy meeting, traders were positioning themselves for more hawkish Treasury yields for two years. [US/]

Premarket trading saw megacap companies like Google (NASDAQ;), Apple (NASDAQ;), Meta (NASDAQ :), Amazon (NASDAQ 🙂 and Microsoft fall between 1% to 2.5%.

Thomas Hayes (Managing Member at Great Hill Capital LLC) in New York stated that tech will split into companies earning today and companies promising to pay tomorrow.

“The big companies promising money tomorrow but no earnings today are likely to get huge haircuts.”

An annual survey was conducted by Deutsche Bank (DE:) The majority of the respondents thought that U.S. tech stocks were in a bubble because investors remain more cautious on hawkish policies and higher yields.

After missing its fourth quarter profit estimates due to weak trading activity Goldman Sachs dropped 4.2%, while BNY Mellon’s (NYSE:) quarterly results saw a 0.2% increase.

Bank of America (NYSE 🙂 are some other lenders Morgan Stanley (NYSE:), Citigroup JPMorgan (NYSE 🙂 was down by 1.6%

8.37 AM. ET fell 292 points or 0.82%. They were also down 44.75 points or 0.96% and down 231.25 point or 1.488%.

Later this week, the U.S. Senate will debate a bill that seeks to restrict app stores for companies which, according to some, exert too much control over market conditions, like Alphabet’s Google and Apple.

On Friday, the Nasdaq fell and the the for the second week straight as investors reacted to bearish sentiment in tech and disappointed results by big banks. This made for an uneven start to earnings season.

The S&P technology index has declined 4.8% so far since the start of 2022.

Bank of America, Morgan Stanley and Netflix will release fourth quarter results Wednesday. On Thursday, big tech stocks like Netflix (NASDAQ) will start reporting.

In M&A news, Activision Blizzard (NASDAQ:) gained 37.6% after Microsoft said it would buy the videogame publisher for $68.7 billion in cash, the largest deal in the sector. Microsoft’s share price fell 1.8%. However, other gaming stocks Electronic Arts NASDAQ: and Take-Two NASDAQ: Interactive rose 6.6% and 3.6%, respectively.

Starbucks (NASDAQ: ) lost 0.9% due to its partnership with Meituan in China, the largest Chinese food delivery service, for greater reach in China’s second biggest market.

Airbnb fell 3.9% following Gordon Haskett’s reduction of shares in the rental company to “hold” as well as lowering its target price.