Stock rebound screeches to halt as benchmarks plunge in afternoon trading
Tech stocks lead losses, dogged by relentless string of negative headlines
The Dow Jones Industrial Average (-1.43), S&P 500 (-1.73) and Nasdaq (-2.93) dropped precipitously Tuesday afternoon, erasing early gains that followed a rise of nearly 3% for major benchmarks on Monday.
Tech stocks took the brunt of the beating, with the NYSE FANG+ index, which tracks shares of the FANG group along with other megacap tech stocks, falling the most since September of 2014, according to Bloomberg.
Twitter and Nvidia were the hardest hit of the lot, falling double digits. Nvidia’s dive came after the company announced it would suspend self-driving car tests on public roads.
Twitter fell 11% after Andrew Left of Citron Research said he is betting against the stock, less than two months after making a bullish bet. “Everything’s changed; everyone is talking about data privacy,” Left told CNBC. “They’re a lot more vulnerable than Facebook.”
Facebook tumbled another 4.9%, still struggling to deal with the public fallout from privacy concerns and worries that a business model based on collecting user data is in jeopardy. The headline on Tuesday was that Facebook CEO Mark Zuckerberg had agreed to testify before Congress.