The Nasdaq has fallen more than 1.0 per cent, dented by technology stocks after Facebook and Twitter executives defended their companies before sceptical US lawmakers. Adding to pressure on technology stocks, the Justice Department later said it would meet with state attorneys general to discuss worries that social media platforms were “intentionally stifling the free exchange of ideas.” Facebook and Twitter were not specifically named.
Twitter shares dropped 6.1 per cent. Facebook shares fell 2.3 per cent, contributing heavily to both the Nasdaq’s and the S&P 500’s declines. The Dow, however, eked out a slight gain. Shares of other tech companies, including Alphabet, Snap and Microsoft Corp, also fell. In the consumer discretionary sector, investors also sold off shares of Amazon.com and Netflix, two members of the group of stocks known as FANG.
Tech and consumer discretionary stocks were the biggest weights on the S&P 500. The S&P 500 technology index fell 1.5 per cent, and the S&P 500 consumer discretionary index fell 1.1 per cent. “Because these companies have become so prominent, they’re attracting scrutiny on the part of regulators and legislators,” said John Carey, managing director at Amundi Pioneer Asset Management in Boston. “They remain market leaders, but there are potential risks.”
The Dow Jones Industrial Average rose 22.51 points, or 0.09 per cent, to 25,974.99, the S&P 500 lost 8.12 points, or 0.28 per cent, to 2,888.6 and the Nasdaq Composite dropped 96.07 points, or 1.19 per cent, to 7,995.17.
Morning Market Note - Thursday 6th September