At around 7:53 a.m. ET, Dow Jones Industrial Average futures were down 275 points, pointing to a loss of 256.44 at the open. The Dow fell nearly 400 points in the previous session. S&P 500 and Nasdaq 100 futures pointed to a negative open too.
Target fell 9.5 percent in the premarket after reporting weaker-than-expected earnings for the previous quarter. The company also posted lighter-than-forecast same-store sales, which is a key metric for retailers.
The decline sent the SPDR S&P Retail ETF (XRT) down 2.2 percent before the bell. Kohl's, L Brands and Macy's — which are also in the XRT — fell 7.7 percent, 7.8 percent and 2.6 percent, respectively.
Futures also fell as members of the popular "FAANG" trade — which is made up of Facebook, Amazon, Apple, Netflix and Alphabet — fell further into bear market. Facebook fell 1.9 percent, while Amazon, Apple and Netflix all dropped at least 2.5 percent. Alphabet's stock dipped 1.5 percent.
On Monday, the FAANG members all closed down at least 20 percent from their one-year highs, pressuring the major indexes.
"Short term, unexpected weakness in the tech sector could have a significant impact on the global economy, adding to what already looks like a soggier macro environment," said Dario Perkins, managing director of global macro at TS Lombard, in a note. "Additional retrenchment in the FAANGs could also undermine the broader US stock market."