On Monday, technology stocks took another beating, extending recent losses for some of the world’s most valuable businesses, which have been under pressure as bond rates have risen.
The selloff was especially severe for Facebook Inc., with claims of global disruptions for its social-media programmes contributing to the stock’s largest decline in almost a year.
A whistleblower who will testify before Congress also has questions for the corporation. Its stock dropped 4.9 per cent, the highest since November 9.
After a whistleblower came forward and outages brought Facebook Inc.’s key programmes down, Mark Zuckerberg’s net worth dropped by more than $6 billion in only a few hours, pushing him down a rung on the list of the world’s richest people.
The shares of the social media behemoth fell 4.9 per cent on Monday, extending a decline of roughly 15 per cent since mid-September.
Three of the largest U.S. technology firms fell more than the Nasdaq 100 Stock Index, which lost 2.2 per cent, marking the third time in 11 trading days that the index has dropped by at least 2%.
Aside from Facebook, Amazon.com Inc. fell 3%, followed by Apple Inc., which fell 2.5 per cent. In addition, Microsoft Corp. fell 2.1 per cent, and Alphabet Inc. fell 2%.
Due to a rise in Treasury rates, which are used to assess the present-day worth of earnings projected to be paid in the future, technology companies are taking the brunt of the selling.
Last week, a sharp increase in those rates contributed to the Nasdaq 100’s biggest weekly loss since February.
With the Nasdaq 100 now looking like it may drop for the sixth week in a row, the damage to some of the index’s biggest members is starting to pile. Apple, the world’s most valuable corporation, followed Facebook and Amazon.com in the correction zone on Monday, which is defined as a 10% decline from a peak. The iPhone maker’s stock has dropped 11% from its high on Sept. 7, wiping away roughly $300 billion in market value.