Facebook and Twitter sell-off worsens; Wall Street hit by ongoing tech woes


September 07, 2018 07:52:51

The Australian share market has been in free-fall all week, and today is likely to be no exception.

ASX futures are down 22 points, and the Australian dollar was steady at 71.9 US cents at 7:30am (AEST).

Meanwhile, Wall Street’s technology stocks continue to tumble.

Computer chip makers like Micron Technology (-9.9pc) were the biggest drag on the tech-heavy Nasdaq index, after its chief financial officer gave a downbeat update about its quarterly sales and pricing.

Twitter stocks plunged by a further 5.9 per cent overnight — on top of its 6 per cent drop yesterday.

Facebook’s share price lost 2.8 per cent, following on from its 2.3 per cent loss the previous day.

Top executives from both companies — Twitter chief executive Jack Dorsey and Facebook chief operating officer Sheryl Sandberg — were grilled by US members of Congress about their efforts to combat foreign meddling with US elections yesterday.

Furthermore, the US Justice Department will meet with state attorneys-general in late September to discuss whether social media platforms are deliberately curtailing free speech, and targeting conservative voices in particular.

Other big-name stocks like Amazon (-1.8pc) and Apple (-1.7pc) also fell sharply overnight.

The Nasdaq index fell by a hefty 0.9 per cent, while the benchmark S&P 500 lost 0.4 per cent.

The industrial-skewed Dow Jones index rose slightly, up 0.1 per cent to 25,996.

European markets also closed sharply lower — with London and Frankfurt down 0.9 and 0.7 per cent respectively — amid an emerging market sell-off, and potentially new US tariffs on Chinese imports, which could take effect today.

More to come.









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