Tech stocks have a bad day on Wall Street
Netflix, Apple, Facebook among big names losing ground
Traders work on the floor of the New York Stock Exchange. The so-called FANG stocks – Facebook, Amazon, Netflix and Google – were hardest hit as the technology heavy Nasdaq dropped by 2.2 per cent at one stage.
The big four digital firms saw their shared drop sharply as investors bailed out of technology stocks on Wednesday.
Analysts pointed to US tax reform legislation which is proceeding through the Senate as a factor in the decline.
“The large tech companies already have low effective tax rates because they were gaming the system,” Michael O’Rourke, chief market strategist at JonesTrading Institutional Services LLC, said. “Any reform would have to close the loopholes, which obviously they’re trying to do, so they don’t benefit.”
Investors shifted to banks and other parts of the market that could benefit from improving economic conditions, lower regulations and taxes, and higher interest rates.
In afternoon Trading on Wall Street Facebook was down 4.3 per cent,; Amazon by3.6 per cent; Netflix shed 6.5 per cent and Google by 2.9 per cent.
The info tech sector — down 2.6 per cent — was also the biggest loser on the S&P 500 on Wednesday.
– Copyright The Financial Times Limited 2017/Reuters/Bloomberg