Investors Should Be Worried About Tech Stocks

Posted by Fred Dunkley

Share on Facebook

Tweet on Twitter

Even though stock market went pretty untouched following the last week’s debacle in Washington, DC, when pro-Trump rioters breached The Capitol, there could very well be consequences–at least for the tech companies that have long been behind the market rally.

In the wake of his support for the mob that stormed the Capitol, Trump’s social media accounts have been locked and banned.

Facebook, Twitter, Instagram, and YouTube all took steps to restrict Trump’s ability to use their platforms, some for good.

PayPal also shut down an account raising funds for Trump supporters who traveled to Washington, DC.

Then, Amazon suspended the pro-Trump social network Parler from its web hosting service, while Apple and Google removed Parler’s app from their stores.

All of that raises some questions about our tech giants in a time of political crisis, and stock prices are potentially starting to reflect that.

Following the riot, the Dow closed up 437 points, or 1.44%, to 30,829, and the S&P 500 gained 0.57% to 3,748. Both the Dow and S&P 500 reached record intraday highs following Congress’ confirmation of Joe Biden’s presidential election win.

But on the flip side, tech companies sold off heavily on Monday, with Twitter tumbling over 6%, Facebook 4%, and others around 2%.

Americans seem unsure which beast they want to let out of its cage here–a situation that will continue to add to the uncertainty…