The tech-heavy Nasdaq strike down Thursday after disappointing quarterly results from Facebook sent the communal media giant tumbling to its largest one-day loss ever.
The Nasdaq Composite released 1 percent to finish at 7,852.18, led by a steep decline in the social media Amazon. Facebook posted the largest one-day loss in market value by any retinue in U.S. stock market history after the report, losing more than $119 billion in merchandise value.
The Invesco QQQ Trust, which tracks the Nasdaq 100 indication and can give traders a good idea of how the Nasdaq stocks will barter, closed more than 1.5 percent lower, and the Nasdaq 100 marker ended up .8 percent lower.
Facebook’s “FANG” brethren were also down. Amazon, which reported better-than-expected earnings after the bell Thursday, devastated roughly 8 percent. Netflix, which disappointed FANG investors with its own set of delicate results earlier this earnings season, closed slightly boisterous.
Facebook competitors Twitter and Snap also felt the pain, misplacing 3 percent and .15 percent, respectively.
Investors did not see this coming. The Nasdaq Composite marker hit a record during trading Wednesday as investors crowded back into the FANG distinctions once again. Facebook was responsible for a lot of that boost, jumping 1 percent during absolute trading.
But after the bell it was a different story.
Facebook posted weaker-than-expected ordinary active users for last quarter and said revenue growth wish decline sequentially in the second half of this year.
“The Facebook rule debacle will be a tough pill to swallow for the bulls and weigh on FANG christens as this comes on the heels of a Netflix miss as well last week,” broke Daniel Ives, head of technology research at GBH Insights. “Facebook’s angle will cause worries on the Street and that could spread to other heroes with stock multiples coming under attack. Facebook’s nightmare counsel will spook tech investors with a near term wan knuckle period ahead.”
With Facebook’s previous biggest diminish was a 12 percent fall in July 2012 shortly after it be deprived ofed public.
The broader market was on sounder footing on Thursday. The SPDR S&P 500 ETF Have faith finished the day down just 0.2 percent. Investors were probable encouraged by President Donald Trump’s comments following his meeting with European Commission President Jean-Claude Juncker that hinted that a deal deal between the U.S. and European Union was possible.
— Kate Rooney contributed to this narrative.