The stock market fell on Thursday as investors again dumped tech stocks that were under pressure after Facebook parent Meta Platforms reported a slump in earnings and warned of business challenges this year.
The Dow Jones Industrial Average fell 1.5% to over 500 points, while the S & P 500 fell 2.4% and the tech-heavy Nasdaq Composite index fell 3.7%.
High-tech stocks on Thursday caused the market to fall. Despite the recent resurgence after a sharp sell-out in January, new investor optimism about tech stocks has plummeted after a sharp decline in Meta’s profits.
The company announced weak earnings guidance than expected, management increased competition, slowing user growth, warned about the ongoing challenge due to a change in Apple’s iOS advertising of the past year. Facebook’s parent Meta share is on track for the biggest daily loss to date, declining 26%, clearing more than $ 230 billion in market capitalization alone, and the company’s market capitalization is now around It remains at $ 670 billion.
Social media stocks have been hit particularly hard after Meta’s slump in earnings. Snap’s share, formerly known as Snapchat, plummeted 23%, image-sharing platform Pinterest fell 10%, and social media platform Twitter fell 6%. Shares of other major tech companies such as Amazon (down 7%), Alphabet (more than 3%) and Microsoft (nearly 4%) have also fallen.