A sharp retreat by Big Tech stocks and concerns about a potential government debt default slammed Wall Street Monday.
Rising Treasury yields and troubles at Facebook drove investors to cut their positions in stocks like Apple, Microsoft and Amazon.
Facebook had a particularly bad day. A whistleblower accused the company of repeatedly prioritizing profit over clamping down on hate speech and misinformation, and shares slid further after Facebook and its apps, Instagram and WhatsApp, suffered outages.
Sanders Morris Harris Chairman George Ball faults Facebook for the market slide.
“Today the Facebook whistleblower revelations have highlighted how vulnerable the big tech stocks are to outside influences attacking them, finding areas of vulnerability, and that frightens investors, speculations and speculators alike. That's why the markets down today, and that's why the big tech stocks are down even more.”
The Dow ended down 1%. The S&P 500 slid 1.3%; it’s off more than 5% from its peak in September. The Nasdaq lost more than 2%.
Tesla bucked the trend. Shares rose after its deliveries of electric vehicles hit a record in the third quarter, breezing past analysts’ estimates. The auto maker is weathering a chip shortage better than its peers.