Just when we were patting ourselves on the back for a remarkable stock market recovery, the market took a nosedive to remind us not to count our chickens. This was the largest single-day drop since June for the Dow Jones Industrial Average and the most significant decline for the Nasdaq since March.
Tech sells off
US stocks plummeted across the board in a mass sell-off, concentrated in tech stocks like Facebook, Amazon, Apple, Netflix, and Google’s parent company Alphabet. The weird part is that no one really knows why. It was not a day of major news in the technology or political climate and the uncertainty over the stimulus and the election has been looming like always. Major stocks just inexplicably started plummeting and kept going.
Facebook made a small announcement about disallowing political ads in the week before the November election, but that should not have drastically moved the market. First off, it is a piddly little half-measure. Facebook has been allowing misinformation to permeate our political system for years, and we are supposed to think that turning this off for a week will help? Political ads make up such a small fraction of Facebook’s ad revenue, so this will hardly affect its bottom line and certainly should not have affected the stock market as a whole.