Wall Street sinks as Facebook-led tech selloff deepens

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USA stocks opened little changed on Wednesday as traders moved cautiously ahead of an expected Federal Reserve interest rate hike, while a drop in Facebook Inc's shares on privacy concerns again weighed on the technology sector.

The selloff wiped some US$50 billion off the value of social media giant Facebook, leaving investors on edge as the Federal Reserve prepares to raise United States rates for the first time this year.

But in addition to rising interest rates by 25 basis points, the market will also expect central bank guidelines to raise interest rates three times this year or tighten monetary policy further.

Wall Street also paid attention to Washington after a Twitter meltdown from President Donald Trump.

The technology index.SPLRCT was up 0.36 percent.

The Dow Jones Industrial Average climbed 116.36 (+0.47 percent) to finish the session at 24,727.27.

"The economic situation post-tax cuts also justifies a significant shift upwards in the dot plot", he added, referring to fears the Fed's de facto policy forecast chart will signal four rate rises rather than three because of the effects of U.S. tax reforms.

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Benchmark 10-year notes last fell 5/32 in price to yield 2.8996 percent, from 2.881 percent late on Tuesday.

The world's financial leaders were seeking to clearly endorse free trade and renounce protectionism amid concern that USA tariffs on steel and aluminum and looming actions against China could trigger a trade war that would hurt global growth. "But if we see retaliation, and significant trade disruptions, it's a different order or magnitude, could begin to affect global growth forecasts", said Andrew Milligan, head of global strategy at Aberdeen Standard Investments.

A pan-European equity index was off 0.2 percent after the WSJ report on China.

An increase would mark its sixth hike since late 2015 when the US central bank started gradually tightening monetary policy following a period of near-zero interest rates in the aftermath of financial crisis in 2008.

Shares of Twitter plunged, down 10.3 percent as of 2.22pm in NY, amid concern about increased scrutiny of social media companies and a Bloomberg report that Israel's government is considering taking "legal action" against Twitter for ignoring repeated requests to remove online content that was inciting or supportive of terrorism.

Crude oil prices jumped more than 2 percent to $63 per barrel. The technological index Nasdaq Composite moved in positive territory by 0.27% to 7,364.30 points.

Amazon.com climbed 2.69 percent, topping Google-parent Alphabet Inc.in market value, and becoming the second most valuable company in the U.S.

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