Facebook Tumbles 5% as the Platform Goes Down, Stocks Slide
Facebook tumbles 5% amid a major outage. WhatsApp and Instagram also go down for hours. Stocks decline broadly on Wall Street.
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- Facebook, Instagram and WhatsApp go down worldwide, Facebook shares tumble 5%
- Stocks on Wall Street head lower on Monday, Nasdaq falls more than 2%
What’s Moving in the Markets?
Facebook stock led the losses in the technology sector yesterday as the company experienced a widespread outage. In detail, the social media and its entities, WhatsApp and Instagram, cut off access for people worldwide. Nevertheless, the company did not cite a specific reason for the problems that lasted several hours. However, the downtime arrived a day before a former Facebook employee was due to testify before Senate.
As a result, Facebook shares dropped roughly 5% on Monday. That being said, losses were broad-based and the three major US indexes slipped in negative territory. The Nasdaq Composite shed more than 2%, dragged lower by big tech names. In addition, the Dow Jones Industrial Average and the S&P500 lost 0.9%, and 1.3%, respectively.
Where are Currencies Going?
In the meantime, in forex trading, the EURUSD turned lower in the early hours of Tuesday’s session. More precisely, the pair declined slightly after two days of gains for the European currency but stayed near 1.1600.
The GBPUSD attempted to bounce from losses made earlier in the day. The sterling has been gaining against a weaker greenback over the past three days. Moreover, the GBPUSD reached a weekly high of 1.3640 on Monday.
Bitcoin and other major cryptocurrencies were well-bid early on Tuesday. Furthermore, the price of bitcoin reached a session high of $49,715 per coin. In addition, over the past six days, the orange token has rallied more than 20%.
What’s the Big Picture?
The financial markets are poised for a highly volatile and uncertain fourth quarter. First, the disappointing performance of stocks in September is fueling concerns of a market slowdown. On that note, a decreased risk appetite from traders and investors could translate to a continued pullback in equities.
Second, the US central bank, the Federal Reserve, is thinking about tapering, or reducing, the asset purchase program. In other words, the $120bn cash injections per month will be reversed, leaving less monetary support for the market.
And third, higher inflation in the US and Europe is threatening to hurt consumer spending and large purchases. In addition, it could also dent the valuation of stocks and prompt investors to look for inflation hedges.
What to Watch?
As the week rolls out, trading opportunities will be present in every asset class. From currencies to bitcoin, to individual stocks, traders will have chances to enter the markets.
More precisely, the British pound could experience higher volatility tomorrow with the release of the Composite PMI data.
Additionally, the euro could endure jittery trading on Thursday when the European Central Bank publishes its Account of Monetary Policy Meeting.
The US dollar and gold are bound for a wild session on Friday when the US Labor Department will reveal fresh jobs data. Namely, the non-farm payrolls report and unemployment data for September will be announced Friday at 08:30 am EST.
Looking Ahead into the Day (EST times)
Australia will be in the spotlight today in terms of scheduled economic events. The Reserve Bank of Australia will reveal its interest rate decision at 11:30 pm. Along with it, the central bank will also publish the Rate statement. Elevated volatility could be expected in the Australian dollar.