NEW YORK (dpa-AFX) – Against the background of bad news from the social media industry, the USstock exchangen gave up most of their gains from the previous day on Tuesday. The bad mood spread above all the forecast from Snap, which dragged down large parts of the industry. The news from the Snapchat group fueled renewed concerns about risks to economic growth.
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“All things considered, we believe the headwinds for Snap are coming from many directions,” writes JPMorgan analyst Doug Anmuth. He assumes that the group’s cautious tenor also harbors downside risks for other stocks from the online industry.
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The leading index Dow Jones Industrial fell by 0.56 percent to 31,700.45 points and was therefore slightly better than in early trading. The previous day it had increased by almost 2 percent. The losses in the market-wide S&P 500, which fell by 1.36 percent to 3919.91 points, were clearer. The tech-heavy Nasdaq 100 slipped 2.48 percent to 11,742.58 points.
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“These wild day-to-day swings have become the norm as investors try to bottom out in the markets only to be hit again by one or two negative headlines,” writes market analyst Craig Erlam at The Broker Oanda. Poor growth forecasts in China and Snap’s profit and sales warning seemed to be the reason for the price slide on Tuesday.
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