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Overnight Markets: Wall Street sinks after Facebook leads tech sell-off

Overnight Markets: Wall Street sinks after Facebook leads tech sell-off

Wall Street declined on Monday as a plunge in Facebook's shares pressured the technology sector amid reports that the social media company’s user information was misused.

The Dow Jones Industrial Average declined 454 points, or 1.82%, to 24,493, the S&P 500 lost 54 points, or 1.95%, to 2,698 and the Nasdaq Composite fell 187 points, or 2.5%, to 7,295.

Facebook shares tumbled 7.1%, their worst drop in nearly four years, after both US and European lawmakers called upon its chief executive Mark Zuckerberg to explain how Cambridge Analytica, a consultancy that worked on President Donald Trump’s election campaign, gained access to data on 50 million Facebook users.

Facebook’s plunge weighed heavily on other social-media stocks and the technology sector, which is the best-performing industry this year.

Twitter Inc. fell 1.7% and Snap Inc. shed 3.5%. In the technology sector, Apple, which is reportedly designing and making its own display screens for the first time, lost 2.24% while Alphabet fell 3.8% and Microsoft declined 2.5%.

Industrials fell 1.45% against the backdrop of concerns about a global trade war, which are set to dominate a two-day G20 meeting starting later in Argentina.

In deal news, KLA-Tencor Corp. said it plannned to acquire Israeli electronics technology company Orbotech Ltd. in a deal valued at about $3.4 billion. KLA-Tencor shares were down 3.9%, while those for Orbotech were up 6.8%.

Canadian cannabis company Cronos Group Inc.’s shares soared 12% after the company said it has entered a cross-border joint venture with MedMen Enterprises to develop branded products and open stores across Canada.

In Asia, share markets were weaker on Tuesday in morning session, as the pullback on Wall Street overnight weighed on sentiment early in session.

In Tokyo, the Nikkei 225 fell 1.04%, Seoul's benchmark Kospi was off by 0.5% and Sydney's S&P/ASX 200 slipped slightly by 0.56%.

In greater China, the Hang Seng Index fell 0.61%, while on the mainland, the Shanghai Composite Index fell 0.31%.

 

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