Falling tech stocks led to a negative day on Wall Street

Falling tech stocks led to a negative day on Wall Street

Facebook closed with a sharp drop of 4.89% after the interruption of the service of that social network and of Instagram and WhatsApp. The S&P 500 Index had its worst day in months

In the context of an unprecedented drop in Facebook services , tech stocks again suffered a poor session on Monday, due to concerns about the instability of the debates on spending and the budget in Washington and low expectations for next season of results.

Investors dumped large tech stocks and other growth stocks as Treasury yields spiked , while fears of a default on US debt fueled caution.

Apple, Microsoft, Amazon and Alphabet , the four most valuable companies on the US stock market, each fell more than 2%. Facebook, the fifth most valuable, crashed after its app and its photo-sharing platform Instagram stopped working.

“ For large technology companies, this is something in the short and medium term, part of a correction process . Rates were clearly too low, due in large part to central bank policies, and now, as investors anticipate withdrawing from those policies, rates are approaching their true value, ”said Jack Ablin, director of Cresset Wealth Advisors investments.

Yields on US Treasuries rose as investors worried about the lack of agreement on the debt limit in Congress , as they awaited the September employment data , which could pave the way for lower debt. Fed asset purchases.

President Joe Biden said he cannot guarantee that the government will not breach its $ 28.4 trillion debt limit , unless Republicans join Democrats in voting to raise it , when the United States faces the risk of a historic default in just two weeks.

Recent data showing rising consumer spending, accelerating factory activity and high inflation growth have fueled bets that the Federal Reserve could start tightening its monetary policy earlier than expected.

Major Wall Street indices suffered in September , hit by concerns such as the fate of a massive infrastructure spending bill and the bankruptcy of the indebted Chinese group Evergrande .

The S&P 500 has fallen about 5% since its record close on Sept. 2. However, more than half of the S&P 500 stocks have fallen 10% or more from their 52-week highs, including 71 stocks that are down more than 20%.

Some sectors of the market enjoyed a rebound , with the S&P 500 energy and utilities indices rising. Tesla Inc rose after the electric vehicle maker reported record quarterly deliveries that beat estimates.

Unofficially, the Dow Jones Industrial Average fell 0.93% to 34,005.92 points, while the S&P 500 lost 1.28% to 4,301.19. The Nasdaq fell 2.12% to 14,258.52 points.

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