Meta plunged and produced Wall Street’s worst drop in nearly a year.

The five biggest tech companies, including Facebook, account for about 20% of the value of the S&P 500, meaning their declines have had a stronger impact on the index.

Technology stocks – which are sensitive to a change in interest rates – have faced a sell-off since the start of the year. Traders feel discouraged from investing in riskier assets, like stocks, as higher interest rates hinder the potential for larger returns in the future. The S&P 500 is down about 6.1% this year.

Also lower on Thursday was Spotify, which fell 16.8% after the company said it expected subscriber growth to slow in 2022 and said it would “no longer plan to issue annual guidelines”. The audio-streaming platform said it doesn’t expect the number of premium users to be affected by the controversy over allegations that its most popular personality, Joe Rogan, used its podcast to spread the word. misinformation about Covid-19 and vaccines.

Thursday’s sell-off ended a four-day rally in equities, which had already recovered from a January plunge. That drop has more to do with concerns about the economy and what higher interest rates mean for businesses, consumers and stock investors – as the Federal Reserve started to increase borrowing costs to cool down inflation.

On the economic front, the Labor Department reported another drop in initial jobless claims on Thursday, falling 23,000 to 238,000 last week. Omicron wave signal data is receding.

But the main economic news for the week will be work report on Friday, will provide a more detailed look at hiring in January – when the latest coronavirus wave was at its most disruptive. Highlighting the uncertainty surrounding this month’s report, projections range from a 250,000 job gain for the month to a loss of 400,000.

Economists consider the January jobs report an anomaly because a host of measurement issues, odd data and Omicron waves mean it doesn’t give a clear picture of the state of the market. labor school. However, with the Fed now focusing on inflation and wage growth data as it tries to gauge how best to proceed with its rate hike plan, the data will come under scrutiny. Meta plunged and produced Wall Street’s worst drop in nearly a year.

Fry Electronics Team

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