- Twitter, Google, Amazon, Facebook stocks drop
- Tariff issue continues to haunt investors
- European markets also traded sideways to lower
American stock markets suffered from a massive sell-off in technological stocks once again yesterday. This caused the tech-heavy Nasdaq to end lower for the third day in a row, and it also had a negative impact on the wider stock market.
The company on the S&P 500 that fared worst on Monday, however, was social media firm Twitter, which saw its share price drop by 8%.
Among the so-called “FANG” stocks, Google, Amazon and Facebook have lost nearly 2% each, while Netflix shares fell close to 6%. This pulled the tech sector of the S&P 500 down by around 1.8%, with investors looking elsewhere for better returns or simply taking profits during the run-up to the mid-term election season, which might become quite volatile. In this year’s elections, control of the Senate and the House of Representatives are both at stake.
Investors are also still worried about trade issues, particularly after news headlines that representatives from the EU, Japan, Canada, South Korea and Mexico plan to meet in Geneva in a few days to talk about their collective response to American President Donald Trump’s threats to impose tariffs on imported car parts.
One of the top performers yesterday was the energy sector, which strengthened by 0.8% after news of higher oil prices because of possible supply issues in the Middle East.
The Nasdaq dropped by 1.4% overnight, and its losses over the last three days now amount to 3.8%. The Dow Jones ended the day 0.6% lower at 25,307, while the S&P 500 also dropped by 0.6%.
European markets were lackluster as well, with London trading sideways while Frankfurt and Paris both ended the day lower, dropping by 0.5% and 0.4% respectively.