Despite the Dow Jones traded higher on Friday. Facebook shares selloff hit markets, erasing its earlier of last week and pushed Dow Jones down by 1.62%. What caused the Facebook shares to plunge and how did the other stocks react?
19 March, ADS Securities – On Friday, the Dow Jones index traded in the green, supported by gains in financial and healthcare sector stocks. Moreover, shares of Wal-Mart, American Express and Caterpillar emerged as the top gainers of the index. However, the gains were short-lived, since the tech market took a hit today after Facebook’s shares took a dive on alleged data breach of 50 million users.
Facebook shares selloff hit markets: Data of 50 Million users compromised?
The stock market took a beating today, not only because of Wall Street’s preparations for the likelihood of four rate hikes by the Fed, but also due to Facebook shares selloff. Facebook shares plunged as much as 7%, after the social media giant disclosed that data analytics firm Cambridge Analytica, improperly obtained but also failed to destroy private data of 50 million Facebook users.
Meanwhile, Cambridge Analytica is reported to have ties to the Donald Trump campaign. US Lawmakers are calling it a data breach and have said that the CEO of Facebook, Mark Zuckerberg has to testify before the Senate Judiciary Committee. The Facebook shares selloff hit markets with the tech sector falling the most.
19 March Dow Jones Trading Outlook
Today, the index is traded with a weak tone on the 1H chart. In addition, the MACD indicator is trading flat below its centreline, further affirming the above view. Immediate support was located at the 24900 level, followed by the 24855 and 24800 levels, which has been breached after the selloff of Facebook hit the tech market. After the news, the Dow Jones Industrial Average fell 1.62%, 404 points to 24,541 and it could drop even further.
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