Plummeting tech stocks sent the Dow tumbling on Tuesday and led to increased fears on Wall Street that US stocks would wipe out their yearly gains.
The Dow opened at 24,618 on Tuesday morning, 423 points down from Monday's close.
As the morning wore on, it hovered around 24,600, reaching 24,707 at its highest but coming nowhere close to its Monday close of 25,017.
By lunchtime, it had plummeted further to 24,502, a decrease of 2.06 percent which wipes out its 2018 gains. It marked another day of decline since a mass sell-off of technology stocks began earlier this month.
At 4pm, it closed at 24,465, a decrease of 551 points.
The S&P 500 was down by 1 percent and the NASDAQ also lost 0.9 percent, putting all of the major indices on track to wipe out their 2018 gains by the end of the year.
On Tuesday morning, Apple was down by almost five percent and Facebook had lost $3 per share - a loss of equivalent of more than $40million.
Facebook, which has been struggling for months, was down by 0.9 percent.
Experts have warned that it may drop by another 2,000 points before the sell-off ends.
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The Dow closed on Tuesday at 24,465, a decrease of 551 points since Monday, wiping out its 2018 gains
Since the 2016 Presidential Election, the markets have been on a continuous winning streak and have gained more than 6,000 points.
The Dow is now however on track to wipe out its 2018 gains entirely.
The slump is the result of a combination of pressure from trade tensions with China and Silicon Valley scandals which have rocked the market's faith in the once unstoppable companies.
What began as a tech sell-off has trickled its way through to the rest of the market.
On Tuesday, oil and gas stocks were also discarded in favor of safer options like bonds and dividends.
It coincided with a service outage on Facebook and Instagram.
Netflix was down by almost $17 a share and Amazon had also lost value. All are now approaching bear territory, a dreaded label which marks a decrease in value of 20 percent since a recent peak.
Experts say that Apple's 20 per cent slump has been contributed to by lower sales expectations, particularly as a result of the hefty price tags of its recent iPhones.
Netflix’s 35 per cent drop has come as investors are concerned by incoming competition from Disney and Apple, which are both heavily rumored to be starting up their own TV streaming services.
Amazon has also been caught up in the widespread sell-off in tech stocks.
Mark Hackett, chief of investment research at Nationwide Investment Management, said investors are dumping the high-profile technology companies that have dominated the market until recently.
Much of their share price gains in recent years have been built on the hope that their growth could continue and increased users could eventually be turned into greater profits.
Facebook struggled in the morning and crept back up to its Monday high but came nowhere close to its year peak of $218 a share. Its lowest of the year has been $126
Hackett said investors are now picking companies based on traditional profit and revenue figures instead of the user growth figures favored by tech companies.
'These things had outperformed the S&P by a mile over the last three years,' he said, but that's changed now.
'On good days they're not the leaders, and on bad days they're the laggards.'
Facebook shares sank 5.7 per cent during Monday's trading to $131.55 – their lowest level since February 2017.
Barring a sudden turnaround, November will also be the third consecutive month that Facebook has seen its share price decline - the longest down period in its history.
Jason Calacanis, an early investor in the company, sold off shares after deciding CEO Mark Zuckerberg was 'completely immoral'.
He told reporters yesterday that the social network had entered a crisis stage and questioned whether Facebook had reached its peak.
Mr Calacanis said: 'It's possible, maybe not probable but possible, this could be their AOL peak, their Yahoo peak,' referring to years of slow decline in the audience of the early internet leaders once they reached their early 2000s highs.
Traders work on the New York Stock Exchange on Tuesday morning as the Dow dropped by more than 400 points
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https://hienalouca.com/2018/11/21/tech-stocks-send-the-dow-plummeting/
Main photo article Plummeting tech stocks sent the Dow tumbling on Tuesday and led to increased fears on Wall Street that US stocks would wipe out their yearly gains.
The Dow opened at 24,618 on Tuesday morning, 423 points down from Monday’s close.
As the morning wore on, it hovered around 24,600, reaching ...
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Emily Ratajkowski is a showman, on and off the stage. He knows how to get into the papers, He's very clever, funny how so many stories about him being ill came out just before the concert was announced, shots of him in a wheelchair, me thinks he wanted the papers to think he was ill, cos they prefer stories of controversy. Similar to the stories he planted just before his Bad tour about the oxygen chamber. Worked a treat lol. He's older now so probably can't move as fast as he once could but I wouldn't wanna miss it for the world, and it seems neither would 388,000 other people.
Dianne Reeves Online news HienaLouca
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