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U.S. stock futures fell sharply Tuesday after Goldman Sachs reported disappointing earnings and as government bond yields hit COVID-era highs.
Futures for the Dow Jones Industrials tumbled 288 points, or 0.8%, to 35,508.
Futures for the S&P 500 backpedaled 45 points, or 1%, to 4,609.75.
Futures for the NASDAQ fell 253 points, or 1.6%, to 15,342.75.
Markets south of the border were closed Monday for Martin Luther King Day.
Goldman Sachs shares ticked nearly 4% lower in pre-market trading on Tuesday after the bank missed analysts’ expectations for its fourth-quarter earnings. Goldman’s operating expenses surged 23% on increased pay for Wall Street employees.
The shortened trading week will feature quarterly reports from 35 companies in the S&P 500, including Bank of America, UnitedHealth and Netflix.
Major banks Wells Fargo, JPMorgan Chase and Citigroup kicked off the earnings season on Friday, with the three companies posting better-than-expected profits. However, the market’s reaction to those results was mixed. Wells Fargo shares posted a gain on the back of those results, but JPMorgan Chase and Citigroup slid.
Overall, 26 S&P 500 companies have reported calendar fourth-quarter earnings thus far. Of those companies, nearly 77% posted bottom-line results that beat analyst expectations.
In early action Tuesday, Gap shares fell 4.3% after Morgan Stanley downgraded the retailer. Yum! Brands was off 4% and Tesla dropped 2.7%.
Rates rose along the yield curve, with the benchmark 10-year note hitting 1.83%, its highest since January 2020.
Overseas, in Japan, the Nikkei 225 listed lower 0.3%, Tuesday while the Hang Seng in Hong Kong declined 0.4%.
Oil prices jumped $1.52 to $85.34 U.S. a barrel.
Gold prices dipped $10.60 to $1,805.90 U.S. an ounce.
