The Facebook scandal that unfolded the other week was the tipping point of a fall out in the tech sector, and now big parts of the international stock markets are being affected. Additionally, more bad news has helped pull the market down further.
Facebook has been on everyone’s mind over the past few weeks after the Facebook and Cambridge Analytica scandal was brought to the public eye. Naturally, the Facebook stock plummeted after the news broke the ether, and it has kept struggling since. The struggle then quickly spread across the market.
Shortly after, bad news hit Nvidia which made the market take a turn for the worst. Nvidia has been working closely with Uber offering their computer chip to Uber’s self-driving cars. However, after a self-driving Uber car hit and killed a woman last week, Nvidia decided to stop the project until further notice. The decision saw the Nvidia stock drop 6.6% in a matter of hours.
If that wasn’t enough, Tesla has announced that they are delaying the Model 3 car further and sources are claiming that the automaker will have to collect more cash flow in order to stay afloat and continue the planned expansion. This news eventually led to the Tesla stock falling to the lowest number since early 2017, and it’s now closing in on bear territory. Moreover, the sell out made Moody downgrade the company to a negative forecast instead of a stable one.
The Struggling Tech-Sector Has Had a Ripple Effect on the Market
Obviously, the struggles of Facebook, Nvidia, and Tesla have had a great negative impact on the American market, but during late Tuesday and early Wednesday, the situation spread further to Europe and Asia. All three stock markets are currently on the back foot, and unless we get some positive news this coming week, the trend will most likely continue.