Shares of big tech companies like Twitter that muzzled Trump and some online communities that support him were under pressure on Monday.
Investors may have remained calm in the face of last week’s siege of the United States Capitol by supporters of President Donald Trump, but fallout from the insurgency and concerns about overheating markets are creeping into the trade Monday.
After hitting all-time highs last week, major US stock indices opened in the red on Monday.
The Dow Jones Industrial Average fell more than 247 points as the markets opened on Wall Street to 30,850.65.
The S&P 500 – an indicator of the health of US retirement and college savings accounts – stumbled 0.89%.
The highly technological Nasdaq Composite Index fell 1.13%.
Investors pushed up U.S. stocks last week, betting President-elect Joe Biden would more easily win congressional support for another round of coronavirus pandemic relief after Democrats cemented control of both chambers of the Congress.
Those hopes, combined with faith in the resilience of America’s democratic institutions and expectations that vaccination campaigns will propel a stronger economic recovery later this year, eclipsed negative sentiment after the Capitol Storm on Wednesday.
But for weeks, market watchers have questioned whether investors have been cautious enough in the face of negative developments.
And indeed, increased caution led to a pullback in stock prices on Monday.
The big names in tech who banned Trump from their platforms, as well as some online communities that support him, were under pressure on Monday.
Investors are pondering the possibility that measures to muzzle Trump in the wake of last week’s events could see social media giants lose legal cover that has protected them from liability for the content users post on their platforms. shapes.
Shares in Twitter fell 10.6% as markets opened on Wall Street after the social media platform permanently banned President Trump’s account.
Facebook shares fell 3.8% after the company froze Trump’s accounts on its platforms.
And shares of Apple, Amazon.com, and Google Parent Alphabet were under pressure after the conservative Talking app started from their platforms.