This week we have witnessed the U.S. stocks plunge, sending the S&P 500 Index to its biggest weekly loss in more than two years, resulting from the ever increasing concerns of an imminent trade war between the USA and China, while also having to deal with higher borrowing rates which could hinder the global growth we have experienced in the past few years.
Overall, during this week, the S&P 500 tumbled 5.9 percent, the Dow dropped 5.7 percent and the Nasdaq slumped 6.5 percent, the Stoxx Europe 600 Index fell 0.9 percent and the MSCI Asia Pacific Index tumbled 2.6 percent, the U.K.’s FTSE 100 Index slipped 0.4 percent, after touching the lowest in more than 15 months. The MSCI Emerging Market Index fell 2 percent. Tech heavy Nasdaq 100 dropped 7.3 % this week, the most since 2015. The Dollar weakened while Gold rose by 1.4% as investors hedged their positions.
When it comes to Tech companies, Facebook (FB) suffered a massive decline of over 14% in its share price as concerns over the potential data breach of over 50 million users and its potential repercussions on the reputation of the company reduced investor confidence. Although Facebook may suffer from regulatory repercussions, it is unclear whether this would be enough to hinder, or even dent, the future prospects of the social media conglomerate. Amidst the tech turmoil, an oversubscribed Dropbox (DBX) IPO began trading at a staggering 29$ per share as opposed to its initial opening price target of between 19$ and 21$. Although future prospects for Dropbox look positive, the dust has yet to settle to be able to have a better view of investor sentiment.
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