U.S. stock markets all showed sizable falls yesterday as faltering global economic growth gives rise to widespread fears. The Dow Jones dropped 2.1%, the S&P 500 fell 43.88 points to finish at 2,035.73, and the Nasdaq mirrored its counterparts by ending the day at 4,877.49 points, down 141.56. The most notable example of a painful day for traders and shareholders alike was Twitter, which actually dropped below its Initial Public Offering (IPO) price of $26.00 per share. Listed in November 2013 and now with a massive 316 million worldwide users, Twitter had reached highs of $70 per share, but has fallen recently over fears for its growth. It ended the day at exactly the level it was first listed at – $26, its IPO price.
Other notable losers yesterday included Walt Disney, down 6% overall. Media stocks took a big hit, with Netflix dropping 7.8% of its value and 21st Century Fox down 4.2%. It was not a good day for Apple either; reports that its smartphone sales in China fell in the second quarter (the first time ever) resulted in a 2% fall in its stock price. Furthermore, the FTSE 100 share index in London, England, is now officially in correction territory, as it has sustained a 10% overall drop from its April peak.
If you are concerned that the economic signals that are flashing like warning beacons all over the globe will result in imminent damage to the U.S. economy, please Like & Share this post.