New York stock exchanges continued their tottering course on Tuesday: after the upward movement on Monday, things fell again significantly. Snap’s plunge also sent shares of other technology companies down. Meta and Pinterest have also gone out of business with huge losses.
The weak performance of growth stocks mainly dragged the high-tech Nasdaq 100 Index, which closed down 2.12% at 11,779 points. The broader S&P 500 finished -0.73% lower at 3,944. After a bullish move at the end of the trading day, the Dow Jones ended the day 0.19% higher at 31,942 points.
Tech crash: Pinterest is in red
The company said Snap Inc. The company behind the photo app Snapchat is unlikely to meet its targets for the current quarter. Snap relies on advertising clients, who are currently acting more cautiously in light of uncontrollable economic matters. As a result of this announcement, the share experienced a historic drop of 43%. Many analysts predict that other companies that rely on advertising will face similar problems.
As a result, Snap’s collapse caused a real sell-off in technology and social media stocks. Pinterest stock is down 23.48% on Tuesday. The paper has been declining for a long time, losing more than 70% of its value over the course of the year. The latest quarterly report showed strong growth in sales and profits and gave hope for a turnaround.
Even the most established tech stocks haven’t escaped the big selloff. Meta stock ended the day 7.62% lower, while Twitter stock fell 5.34%. Shares of parent Google Alphabet tumbled 4.94% into the red.
Abercrombie and Fitch crash
Technology is not the only source of fire, retail is also suffering from the economic situation. Walmart and Target stocks were already down last week, followed by fashion company Abercrombie & Fitch. After realistic quarterly numbers, the stock lost 28.60%.
Arms makers up: Lockheed Martin ended the trading day with a 2.20% increase. Northrop Grumman shares gained 3.04%.
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