A sell-off across Asia and Wall Street in tech stocks have pushed the FTSE 100 almost 1 per cent lower to 6,943.17 points. UK shares have also hit record lows amid renewed fears about Brexit and Italy’s budget showdown with the EU.
The Dow opened at 24,618 today morning– 423 points down from Monday’s close– amid mass sell-off of technology stocks.
While Apple was down by almost 5 per cent, Facebook had lost $3 per share. Netflix was also down by almost $17 a share.
Fiona Cincotta from CityIndex commented: “A mixture of weaker sales, technical problems and investor nervousness over future demand triggered a heavy sell-off among US tech stocks on Monday causing the Nasdaq to tumble 2.7% and the DJIA to lose almost 500 points before closing down 1.56%.
The downward trend in US futures continued early this morning spilling into Europe and Asia.
“The FAANG stocks are now somewhat suffering from their own glory. As much as the companies could do no wrong when investors were positively inclined towards them, Amazon, Netflix, Facebook and Microsoft are now selling off much quicker than other stocks. Part of the problem is that investors no longer expect an average growth in profit; if the sales are not double digit and spectacular – as is the case in with the latest iPhone – the disappointment quickly translates into a selloff in shares.
“Given how high these stocks have risen over the last year the selloff then triggers chart signals which only provoke more and faster selling.”