Home Markets US stocks open sharply lower after downbeat tech earnings

US stocks open sharply lower after downbeat tech earnings

3

Wall Street stocks snapped a four-day winning streak to open sharply lower, after disappointing updates from Facebook owner Meta and other pandemic-era winners ricocheted through the tech sector.

The Nasdaq Composite fell 2.3 per cent in early dealings as shares in Meta, one of the largest constituents of the tech-heavy index, dropped by over a quarter, shedding more than $200bn of its value. Meta overnight reported its first decline in daily active users and warned of increased competition from rivals such as ByteDance’s TikTok platform.

The S&P 500 share gauge opened 1.5 per cent lower. Following Wall Street’s worst January since 2009, the US equity benchmark has now lost almost 5 per cent this year. Tech companies dominate the US indices.

Shares in PayPal had dropped a quarter on Wednesday after the payments company warned that a weakening ecommerce environment would slow its growth rate. Music streaming platform Spotify also delivered a…

Click here for full article…www.ft.com