By - Versha Jain
Benchmark US indices closed in the red on Thursday, February 3, after Mark Zuckerberg-led Meta Platforms, Inc lost roughly US$200 billion in market value in a massive stock rout.
Shares of other tech companies, such as Amazon.com, Google, and Spotify, also took a beating.
The S&P 500 fell 2.44% to 4,477.44. The Dow Jones declined 1.45% to 35,111.16. The NASDAQ Composite fell 3.74% to 13,878.82, and the small-cap Russell 2000 lost 1.90% to 1,991.03.
Shares of Meta Platforms, Inc. (FB) fell more than 26% in intraday trading on Thursday, continuing with the previous day’s slump. The rout comes after the social media company reported a steep decline in profit and provided a weak outlook on new iPhone privacy rules.
CEO Mark Zuckerberg, who owns about a 12.8% stake in the company, saw his net worth slide US$29 billion on Thursday after the record one-day plunge.
On Thursday, former Fed governor Sarah Bloom Raskin, Davidson College's Philip Jefferson, and Michigan State University's Lisa Cook were due to appear before the Senate Banking Committee for a confirmation hearing on their nominations to the bank's Board of Governors.
The board changes come as the US inflation hit record highs in recent months and as the bank plans to start tightening its monetary policy to curb the high prices.
Other global central banks have also signaled a rate hike. The Bank of England has increased the rates, while the European Central Bank is considering a similar move to tame the high inflation.
Meanwhile, new unemployment benefits claims fell by 23,000 to seasonally adjusted 238,000 in the week ended January 29, the Labor Department said on Thursday.
Nine out of 11 stock segments of the S&P 500 closed in the red on Thursday. Utilities and consumer staples sectors advanced, while communication services, consumer discretionary and information technology sectors were the bottom movers.
Shares of Twitter, Inc. (TWTR) fell more than 5.5% in intraday trading, while the Amazon.com, Inc. (AMZN) stock plunged over 7.4% ahead of the quarterly results after the market close.
Spotify Technology Inc (SPOT) stock fell more than 15% after failing to provide annual guidance in its quarterly earnings call the day before. The T-Mobile US, Inc. (TMUS) stock jumped more than 10% after posting robust quarterly results, topping Wall Street estimates.
In the utility sector, Duke Energy Corporation (DUK) stock surged 0.12%, Southern Company (SO) rose 0.44%, and American Electric Power Company Inc. (AEP) increased by 0.27%. Exelon Corporation (EXC) rose 1.64%, and First Energy Corp. (FE) grew 0.34%.
In the consumer staples sector, Procter & Gamble Company (PG) stock gained 0.95%, Walmart Inc. (WMT) rose 0.01%, and Coca-Cola Company (KO) gained 0.60%. Mondelez International Inc. (MDLZ) increased by 0.04%, and Kimberly Clark Corporation (KMB) increased by 0.52%.
In the communication services sector, Alphabet Inc (Googl) declined 3.53%, and Walt Disney Company (DIS) fell 1.74%. Comcast Corporation (CMCSA) and Verizon Communication Inc. (VZ) were down 0.55% and 0.13%, respectively.
The global cryptocurrency market fell 2.12% to US$1.69 trillion, as per coinmarketcap.com at 4:12 pm ET. Bitcoin (BTC) fell 1.58% to US$36,800 in the last 24 hours.
Also Read: What is NFT? How to create and sell?
Also Read: Top 10 Nasdaq semiconductor stocks to explore
Also Read: Top 7 healthcare stocks on NASDAQ to consider
Futures & Commodities
Gold futures declined 0.23% to US$1,806.20 per ounce. Silver futures decreased by 1.35% to US$22.400 per ounce, while copper futures fell 0.59% to US$4.4695.
Brent oil futures increased by 1.61% to US$90.91 per barrel and WTI crude futures were up by 2.06% to US$90.08.
Bond Market
The 30-year Treasury bond yields increased 2.69% to 2.150, while the 10-year bond yields were up 3.66% to 1.831.
US Dollar Futures Index fell 0.60% at US$95.355.