Stocks fall again as Big Tech tumbles.


Wall Street stocks fell on Monday, with the S&P 500, the US benchmark, losing 1.3% and the Nasdaq composite dropping 2.1%.

Apple, Amazon, Google and Microsoft all closed down more than 2%, while Facebook was down 4.9%. The biggest tech companies have a huge influence on the S&P 500 and the Nasdaq.

The S&P 500 has fallen 5.2% since its high on September 2, as investors weighed in concerns about continued disruption to the economy and supply chains by the Delta variant and the effects of on-board political politics. of the abyss on the economy. They also considered the Federal Reserve’s plans to start cutting – or cutting – the $ 120 billion in bonds it bought each month during the pandemic.

“The rally we have had in the stock market has been supported by the supportive policy of the government and central banks,” said Fiona Cincotta, senior financial markets analyst at Forex.com. “When you’re heading into tapering, you’re heading towards higher interest rates, and that’s not as good for businesses as this easy money we’ve had over the past year and a half. “

Oil prices rose on Monday, with West Texas Intermediate, the benchmark for US crude, up 2.3% to $ 77.62 per barrel. The benchmark topped $ 78 earlier on Monday, hitting its highest price since 2014. Officials from OPEC, Russia and other oil producers met on Monday and agreed to move away. Stick to their previous agreement to only gradually add oil to the market despite growing demand for energy. Shares of Devon Energy Corporation gained 5.3%, while Diamondback Energy rose 4.6%.

On Sunday, Frances Haugen, a former Facebook employee who is scheduled to testify before Congress on Tuesday, appeared on “60 Minutes” to discuss the social media giant’s business practices. “Facebook, time and time again, has shown it prefers profit over security,” Ms Haugen said on the show. Shares of the social media giant started the day down nearly 4%.

Then Facebook’s apps, which also include Instagram and WhatsApp, were shut down for a long time on Monday for many users, resulting in their actions even more. While it’s common for websites to briefly go down, an outage of the size and scope of Monday’s is rare.

A Senate vote on a stand-alone bill that would lift the legal limit on federal borrowing until December 2022 is expected to fail amid Republican obstruction. Janet Yellen, the Secretary of the Treasury, told Congress that if the limit is not raised by October 18, the federal government will default on its debt. President Biden on Monday called Republicans “reckless” and “ashamed” for obstructing the vote and warned Americans could see the effects as early as this week if Senate Democrats are unable to vote to raise the debt ceiling.

Ongoing supply chain disruptions are also on the minds of investors. Overseas, full or partial plant closures due to outbreaks of the Delta variant of the coronavirus, as well as power outages, have resulted in shipping delays and increased costs.

“The future of November and December will depend a lot on how companies see their prospects,” Ms. Cincotta said. “We could see challenges given the headwinds the economy is facing with regards to the energy crisis and supply chain disruptions, which will not be resolved quickly.”

China Evergrande shares were suspended from the Hong Kong Stock Exchange on Monday after the announcement of a “major transaction”. The real estate developer has come under close scrutiny by foreign investors after missing two large interest payments on US dollar bonds.

Government bond yields rose as investors sold some of their safest assets. The yield on 10-year Treasuries rose by one basis point, or 0.01 percentage point, to 1.49%.

European stock indices were down, with the Stoxx Europe 600 down 0.5%.

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