Thanksgiving break is much needed for tech investors hit hard the last two months
The U.S. stock market’s pre-Thanksgiving decline continued on Tuesday, with prominent tech and media companies like Netflix and Apple unable to escape the recent downturn that has erased Wall Street’s 2018 gains.
All three major indexes ended in the red on Tuesday, with the S&P 500, Down Jones Industrial Average and Nasdaq all dropping more than 1.7 percent. The Dow was hit hardest, falling 551 points and dropping 2.2 percent during the day. The tech sector’s swoon, which started about two months ago, has since extended to the rest of the market. The recent pummeling has wiped out the yearly gains for the S&P 500, Dow and Nasdaq.
Apple, the world’s richest company, wasn’t spared, as shares dropped 4.78 percent to $177 per share after Goldman Sachs lowered its stock price forecast on Tuesday morning. Since posting slightly underwhelming quarterly iPhone sales on Nov. 1, Apple shares have decreased about 20 percent.
Netflix’s rough month didn’t subside, either, with the streaming heavyweight falling another 1.34 percent to $267 per share. It’s been a rollercoaster year for Netflix shareholders: Its shares are down 37 percent from its 52-week high of $423 back in June — but still up 32 percent since the start of the year.
Facebook, after hitting its yearly low on Monday, ticked up slightly, increasing 0.67 percent to $132.43 on Tuesday. The modest gains did little to offset the losses that followed a critical report from The New York Times last week, saying CEO Mark Zuckerberg and COO Sheryl Sandberg were slow to react to multiple issues, including Russian trolls leveraging its platform, in the past two years. Facebook also used opposition research firms to target its critics and competitors, like Apple chief executive Tim Cook, according to the Times — something Zuckerberg said he “didn’t know” about until reading the report. Facebook shares have decreased 8 percent in the last week and are now down 27 percent on the year.
And Amazon, after — according to CNBC — joining the bidding for Disney’s 22 regional sports networks from its Fox acquisition, dropped 1.11 percent to $1,495 per share.
Several factors have contributed to the market’s overall selloff, including uncertainty over China and U.S. trade relations, lingering fears the Federal Reserve could raise interest rates and uninspiring growth from many U.S. companies. Even fringe investments like cryptocurrency have taken a hit recently; the price of a single bitcoin has nosedived in the last month, falling 35 percent to about $4,200 per coin on Tuesday.