Rate-sensitive tech, growth stocks fall after Moody's rating cut

Shares of rate-sensitive tech and growth stocks drop premarket after U.S. Treasury yields extend gains

"Magnificent Seven" stocks slip; they have driven much of Wall Street's rally in the past year

Tesla TSLA.O loses 4.65%, Apple AAPL.O down 1.86%, Microsoft MSFT.O drops 1.25%, Amazon.com AMZN.O falls 2.15%

Meta Platforms META.O loses 2.24%, Nvidia NVDA.O drops 3.63%, Alphabet GOOGL.O down 2.31%

Super Micro SMCI.O Computer leading losses with 5.1%, Palantir Technologies PLTR.O slips 5%

Futures tied to tech-heavy Nasdaq 100 index NQcv1 down 1.8%

U.S. Treasury yields rose after Moody's became the latest major credit rating agency to downgrade the country's debt, further undermining investor confidence in U.S. dollar-denominated markets

Growth stocks take a hit when yields rise as their returns and valuations are discounted more deeply

The 10-year U.S. Treasury yield US10YT=RR rises to 4.5385%; two-year yield US2YT=RR, which closely tracks interest rate expectations, climbs to 4.0018%