Stock market broadly lower on Wall Street: Nasdaq Tech Composite Index down more than 2 percent

Stock market broadly lower on Wall Street: Nasdaq Tech Composite Index down more than 2 percent

After opening slightly lower, the decline was higher on Wall Street and the major indices closed as follows:

  • The Dow Jones Industrial Average, which is made up of 30 carefully selected, supposedly important stocks, fell 0.94 percent.
  • The Nasdaq Composite Index, which is dominated by technology companies, fell 2.14 percent
  • The Standard & Poor’s 500 Index, which consists of 500 of the largest listed companies in the United States, fell 1.30 percent

The drop comes after the stock market plunged in parts of Asia, The crisis-stricken Evergrande, the world’s largest homebuilder, continues to stir turmoil in the markets. Hong Kong’s Hang Seng fell 2.19 percent on Monday, while Japan’s Nikkei 225 fell 1.13 percent.

Facebook technical problems

On Monday, Facebook reported major technical issues, as well as apps like Whatsapp, Instagram and Messenger, which are all owned by Facebook and share much of the same infrastructure.

This led to a widespread decline in the stock market in many technology companies. Facebook closed 4.89 percent lower, and was as low as $323. This could be the worst trading day on Facebook since October 2020, according to reports Market Watch.

Other tech companies are also falling behind. Facebook-owned Twitter and Snapchat are each down more than five percent, while Apple and Microsoft are down more than two percent.

At 6 PM Norwegian time, Facebook reported the technical issues on Twitter, but did not announce the background.

A few hours later, Mike Schroeber, Facebook’s chief technology officer, reported the issues on Twitter:

According to many media outlets, security experts point to the Domain Name System (DNS) as the cause of technical problems. DNS makes it possible to send information to the right place on the Internet, by associating domain names and IP addresses with Internet services.

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“I don’t know if you’ve seen such relaxation from a big internet company,” says Doug Madhuri, an internet analyst at network monitoring company Kentik. to CNN.

The fact that a company the size of Facebook has been disconnected for more than three hours suggests that there is no quick fix to the problem, he told CNN.

fear of attention

The yield on 10-year US government bonds, often called the most important yield in the world, is rising cautiously to 1,476 percent.

As recently as August, the interest rate was as low as 1.13 percent. Growth companies gained momentum at the end of September, as a result of a relatively sharp increase.

Growth companies are often hit hard by increases in long-term interest rates, because these are companies that are priced according to expectations of future income. Increasing long-term interest rates make today’s returns more favorable in relation to returns in the distant future, and then value stocks will be more attractive.

The market is closely following the development of interest rates, due to increased consumption, accelerated manufacturing activity, as well as increased inflation – which could result in the US Federal Reserve (Fed) running money sooner than expected. Reuters writes.

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The Fed has been supporting $120 billion in bond purchases per month since the start of the pandemic. Federal Reserve Chairman Jerome Powell has indicated that he is on track to downsize by the end of the year.

Strong Tesla numbers

Tesla shares rose 2.9 percent from the start, but closed 0.81 percent higher. This happened after the company announced this weekend that it delivered 241,300 vehicles in the third quarter. It qualifies for the electric car manufacturer’s record, and at the same time, it broke analysts’ prior estimates of 223,677 cars delivered.

Dan Ives, an analyst at Wedbush Securities, described the delivery numbers as quite staggering Bloomberg, due to a global shortage of components, as well as major problems in the value chain. Tesla’s total production in the third quarter rose more than 15 percent from the previous quarter.

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Tesla’s stock price is now around $780 a share, the highest level since February of this year. The price gives the company a market value of about $770 billion. By comparison, the automaker General Motors has a market capitalization of $77 billion, despite the fact that the company makes far more cars and makes a lot more profit than Tesla.

Major US bank JPMorgan Chase says Tesla’s market capitalization is still inexplicably highBut at the same time, the target price rises to $210 from the previous $185.

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Dalila Awolowo

Dalila Awolowo

"Explorer. Unapologetic entrepreneur. Alcohol fanatic. Certified writer. Wannabe tv evangelist. Twitter fanatic. Student. Web scholar. Travel buff."

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