U.S. stocks fell on Monday, with the Nasdaq dropping more than 1 percent, as Facebook’s shares tumbled about 5 percent on reports that data of 50 million users were misused.
Facebook shares dropped, on track for their worst day in 16 months, on media reports that a political consultancy that worked on President Donald Trump’s campaign gained inappropriate access to data on 50 million Facebook users.
Amazon, Apple, Netflix and Alphabet – all part of the so-called FAANG group of heavyweight stock, along with Facebook – were down between 0.7 percent and 2.25 percent.
While it is near certain that the Fed will raise rates by a quarter basis point on Wednesday, investors are more focused on whether policymakers think economic conditions are strong enough for four hikes this year, one more than the markets expect.
“I don’t think anyone’s expecting any surprises (from the Fed) … but the bigger factor has been the surrounding the big technology companies, particularly Facebook,” said Rick Meckler, president of investment firm LibertyView Capital Management in Jersey City, New Jersey.
“Just a re-examination of whether or not there are issues out there for all of the tech companies, regulatory or otherwise. They’ve been such leaders that it’s spilling over into the general markets.”
All 11 S&P sectors were lower. Industrial stocks .SPLRCI were again under pressure, falling 0.7 percent ahead of the Group of 20 finance ministers meeting, where a key issue likely to be discussed is President Donald Trump’s tariff plans.
Apple slipped 0.7 percent after brokerage Nomura Instinet said its checks showed there was little improvement in demand for iPhones this year and lowered its sales estimate for the smartphone.