June 12, 2017 / 11:35 AM / in a year

US STOCKS-Futures down as tech rout continues

* Futures down: Dow 41 pts, S&P 6.75 pts, Nasdaq 48.75 pts

By Yashaswini Swamynathan

June 12 (Reuters) - U.S. stock index futures were lower on Monday, with Nasdaq futures taking the biggest hit as investors locked in gains on the richly-valued technology sector.

* Technology stocks have been enjoying a record-setting rally, helped largely by strong quarterly earnings. The S&P 500 technology index has risen 18.5 percent this year and is on track for its best yearly performance since 2014.

* Apple suffered its worst drop in 14 months on Friday, sparking a selloff in technology stocks amid news of using slower modems in upcoming iPhones. Shares of the world’s most valuable listed company fell 2 percent to $145.97 in heavy premarket trading on Monday.

* Big technology names such as Mircosoft, Facebook , Netflix and Alphabet were in the red.

* Shares of Apple suppliers, including Qualcomm, Skyworks Solutions and Micron Tech, also took a hit.

* However, a 1.2 percent rise in oil prices may cushion the blow on the major indexes from the tech selloff.

* Investors are also likely to be on the sidelines ahead of the Federal Reserve’s two-day meeting starting Tuesday, where traders see a 94 percent chance for an interest rate hike.

* Shares of General Electric rose 2.7 percent to $28.70 after the company said Jeff Immelt would retire as chief executive and would be replaced by John Flannery, the head of GE healthcare, ending a years-long succession plan.

* Coherus BioSciences tumbled 25 percent to $15.50 after the FDA denied the approval of its biosimilar for Amgen Neulasta, which fights infections in cancer patients. Amgen was up 1 percent to $165.75.

* No top-tier economic data is scheduled for the day. The Federal Reserve is in a self-imposed quiet period ahead of Tuesday’s meeting.

Futures snapshot at 7:06 a.m. ET:

* Dow e-minis were down 41 points, or 0.19 percent, with 11,014 contracts changing hands.

* S&P 500 e-minis were down 6.75 points, or 0.28 percent, with 117,590 contracts traded.

* Nasdaq 100 e-minis were down 48.75 points, or 0.85 percent, on volume of 25,963 contracts. (Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Anil D’Silva)

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