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FX.co ★ Social media outage affects US stock indices

Social media outage affects US stock indices

Social media outage affects US stock indices

The recent outage in operation of top social networks and messengers hurt not only people who like to post pictures of their everyday life. The financial losses of the US stock markets were unexpectedly heavy due to this emergency.

Facebook founder Mark Zuckerberg was not the only one who lost money. The whole US market collapsed after the social media outage. The main indices fell significantly: the S&P 500 went down 1.3%, the NASDAQ 100 plunged by more than 2%, the Dow Jones decreased by almost 1%, the NYSE Composite dropped by 0.73%. The biggest losers in the markets were tech stocks. A group of companies in fellow FAANG names - Facebook, Amazon, Apple, Netflix and Google - the tech sector leaders, suffered the most and totally lost $243 billion in capitalization overnight. The other tech companies followed suit: Alphabet plunged by more than 3%, Amazon dropped by 2.85%, Netflix went down 2.6%, Apple lost 2.4%, and Microsoft decreased by over 2%.

Facebook incurred the biggest losses due to the global outage. At the close of trading, the tech giant’s shares plummeted by more than 5%, and its capitalization fell by $50 billion. Company CEO Mark Zuckerberg lost $6.6 billion due to the paralyzed social media platforms Facebook and Instagram, as well as messaging service WhatsApp.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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