U.S. technology shares opened lower as disappointing subscriber growth from Netflix threw a wet blanket over the rest of the FAANG stocks. The dollar strengthened amid expectations Federal Reserve Chairman Jerome Powell will make the case for further tightening in testimony before a U.S. Senate panel.

The Nasdaq 100 slumped for a second day, as Netflix helped to drag down Facebook, Apple, Amazon and Google parent Alphabet. Results from Goldman Sachs narrowly beat investor expectations, while trading revenue disappointed. On the Stoxx Europe 600 Index, gains in mining and chemicals shares were outweighed by declines in telecommunications and household goods.

“We’ll see if this is a one-off in the pantheon of big tech names, or if this is a harbinger of weaker guidance,” said Quincy Krosby, chief market strategist at Prudential Financial Inc. “Most likely not though, this sets the stage for the market to continue to be selective.”

Earnings and U.S. monetary policy have become the main drivers of market sentiment this week. That’s giving respite from a backdrop of worsening trade relations between the world’s biggest economic powers. Company results have been mixed thus far, with Deutsche Bank AG and Bank of America Corp. beating estimates, counterbalancing the Netflix reading.

Later Tuesday, Federal Reserve Chairman Jerome Powell will likely make the case for further tightening in testimony before a U.S. Senate panel, with markets pondering whether he’ll strike a more hawkish tone than Federal Reserve Bank of Minneapolis President Neel Kashkari, who said there’s little reason to raise rates much further.

“I doubt he’ll surprise the market with hawkishness,” Societe Generale global fixed income strategist Kit Juckes wrote in a note. “The U.S. economy is in good shape, but the President is laying waste to the global synchronized growth theme.”

Commodities climbed after Monday falling to the lowest in 11 months as crude traded in New York steadied at about $68 a barrel. Emerging market stocks headed lower for a second day. The New Zealand dollar jumped after the central bank’s core inflation measure accelerated at the fastest pace in seven years.

Japanese stocks outperformed in Asia, while the yen held close to its weakest level since January. Treasuries edged higher with most European sovereign bonds, as the Bloomberg Dollar Spot Index halted three days of declines.

These are the main moves in markets:

Stocks

Canada's main stock index crept higher in late-morning trading. The Toronto Stock Exchange's S&P/TSX composite index was up 3.35 points to 16,498.08, after 90 minutes of trading.

The S&P 500 Index fell 0.2 per cent as of 9:35 a.m. in New York. The Dow Jones Industrial Average dropped 0.1 per cent. The Nasdaq Composite Index dropped 0.6 per cent. The U.K.’s FTSE 100 Index dropped 0.1 per cent. The MSCI Emerging Market Index slumped 0.3 per cent. The Stoxx Europe 600 Index fell 0.2 per cent.

Currencies

The Canadian dollar was trading at 75.82 cents US, down from an average value of 76.12 cents US on Monday.

The Bloomberg Dollar Spot Index rose 0.3 percent, the first increase in four days. The euro slipped 0.2 percent to $1.1694. The British pound dropped 0.6 percent to $1.3161. The Japanese yen weakened 0.3 percent to 112.66 per dollar. South Africa’s rand fell 0.3 percent to 13.26 per dollar.

Bonds

The yield on 10-year Treasuries fell less than one basis points to 2.85 per cent. Italian 10-year yields fell 11 basis points to 2.47 per cent. Germany’s 10-year yield fell one basis point to 0.35 per cent.

Commodities

West Texas Intermediate  crude dropped 0.7 per cent to US$67.61 a barrel. Gold fell 0.4 per cent to US$1,236.38 an ounce, the third straight daily decline.

With files from The Canadian Press