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Shares on Wall Street fell the most in nearly a year yesterday after a disappointing earnings report from Facebook parent Meta echoed through the market.
The S&P 500 index fell 2.4 percent, its biggest decline since February 2021, driven primarily by declines in technology stocks that dominated the blue-chip U.S. index. The slide ended a four-day rally and took the S & P’s declines to 6.1 percent this year.
Investors were shocked by Wednesday’s results of Meta, which dropped the company’s shares by 26.4 percent and wiped more than $ 230 billion from its valuation, an unprecedented one-day loss for a listed company.
It was the social media group’s worst day on the stock market since it appeared on the stock exchange in 2012 and one of the biggest one-day declines in a company’s market value on record.
“Fingers have hovered over the sales trigger for the technology sector,” said Gregory Perdon, co-chief investment officer at Arbuthnot Latham. “So when you get an announcement like [Meta’s]investors see the beginning of the end. ”
However, stock markets rose in Asia and Europe today and futures contracts have a higher open on Wall Street today.
The turnaround in sentiment was helped by Amazon results. Strength in Amazon’s cloud computing division counteracted weaker-than-expected sales in the fourth quarter and the decision to increase the price of its Prime subscription service, which put the online retailer at “wages and transportation costs”.
The results caused a surge in Amazon shares that rose 15 percent in after-hours trading. If those share price gains stick to regular trading today, it will be the company’s largest one-day share price increase since October 2009. On another manic day of trading in the technology sector yesterday, Amazon shares closed up 7.8 percent.
Opinion: While Mark Zuckerberg may be dreaming of distant metaverse, Meta was humiliated this week by a more mundane technology – TikTok’s algorithm, writes Richard Waters.
Thanks to all the readers who voted in yesterday’s poll. More than a third of you are considering moving jobs. Here’s the rest of today’s news – Gordon
Five more stories in the news
1. US says Russia plans to produce pretexts for Ukraine’s invasion The US accused Russia yesterday of distributing a “propaganda video” with graphic images of a sham explosion to create the pretext for an invasion of Ukraine. Recep Tayyip Erdogan, meanwhile, has signed an agreement to deepen Turkey’s defense cooperation with Ukraine as Russia’s troop buildup continues.
2. Biden’s nominee for top Fed watchdog defends views on climate risks Sarah Bloom Raskin sought to ward off criticism from Republican members of a Senate Banking Committee over her views on climate-related financial risks. She has previously voiced support for rules requiring large banks with exposure to fossil fuel-intensive industries to hold more capital.
Bored Ape begins investment talks with Andreessen Horowitz Yuga Labs, the founder behind Bored Ape Yacht Club, is discussing new financing with Silicon Valley venture capital firm Andreessen Horowitz, which will value it at between $ 4 billion and $ 5 billion. The non-fungal token collection counts owners such as Gwyneth Paltrow and Snoop Dogg as owners.
4. Isis leader dies during US raid Joe Biden said Abu Ibrahim al-Hashimi al-Qurayshi was killed by an explosion when the US president gave details of a special forces night attack on the Isis leader’s hideout in northwestern Syria. Isis founder Abu Bakr al-Baghdadi was assassinated in similar circumstances in 2019.
5. IMF defends Argentina’s debt restructuring agreement Kristalina Georgieva, managing director of the IMF, yesterday defended her main deal with Argentina to restructure $ 44.5 billion in debt from a record 2018 bailout, despite growing criticism of the plan to save the country’s struggling economy.
Four prominent assistants Boris Johnson resigned yesterday after weeks of allegations of lockdown in the heart of the British government. More departures are expected today, people close to the prime minister said.
The Bank of England said the coming pressure on household income would be the worst for three decades and predicted that British inflation would rise to 7.5 per cent.
The most virulent known HIV variant was discovered in the Netherlands, but researchers said it provides valuable insight into how viruses like the one behind Covid-19 can develop.
Opinion: Covid entrepreneurs could lead a new wave of creative destruction, writes John Thornhill.
The days ahead
US employment The Biden administration is preparing for a bleak report on jobs in January, with growth expected to slow and the unemployment rate to 3.9 per cent steady after several months of rapid declines as a wave of Omicron business workers set aside and closed businesses.
Pharmaceutical company earnings Drug manufacturer Bristol-Myers Squibb is scheduled to report results for the fourth quarter and is expected to make a bigger profit than last year on increased sales of its cancer drugs Revlimid and Opdivo. Regeneron Pharmaceuticals investors will seek comment on its Covid-19 monoclonal antibody treatment when it announces results. Last month, the FDA withdrew its authorization.
Beijing Winter Olympics Vladimir Putin and Xi Jinping presented a united front in talks just hours before the opening ceremony of the Beijing Winter Olympics. In a joint statement, they highlighted Sino-Russian opposition to any further expansion of NATO, or new blocs in the Asia-Pacific region.
What are we still reading and listening to?
Why real inflation is so difficult to measure While the current average level of UK inflation is 5.4 per cent, a poverty campaigner pointed out that baked beans in her local supermarket have risen from 22p to 32p in a year. When it comes to inflation, we need to fill the gaps in our knowledge, writes Tim Harford.
Venture capital’s new race for Europe The continent was slow to develop technological unicorns. But technological ecosystems are like start-ups: winners progress exponentially, with each step forward making the next easier. Can Silicon Valley’s creativity and cash create a finish line?
“After the Tories abandon Johnson, they must restore their values” Boris Johnson’s premiership was largely spent on sabotaging his own “oven-ready” Brexit deal and mismanaging Covid-19. It’s time to write his political obituary, says Simon Kuper.
Japan’s Olympic Recovery Success The Tokyo Summer Games were the first time that all 5,000 gold, silver and bronze medals were made from recycled materials, the result of an unprecedented urban mining project that laid the foundation for what Japan considered to be a unique sustainable Games.
Is the Orban era coming to an end? In the latest episode of the Rachman Review, Gideon Rachman talks to Hungary’s opposition leader Peter Marki-Zay about his chances of overcoming Viktor Orban and his Fidesz party’s powerful political machine in April’s elections.
Danny Leigh reviews six new film releases, including Pedro Almodóvar’s Parallel Mothers and The eyes of Tammy Fayestarring Jessica Chastain.
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