The company reports did not meet the expectations of investors
Morgan Stanley analysts say that the selloff in the stock market is just beginning, stocks of technology companies continue to become cheaper. Correction, according to analysts, will only get worse and could become the largest since February of 2018. About it writes Bloomberg.
Technology sector stocks have lost 9% of the cost, it is comparable to the NASDAQ in February fell by 10% in two weeks.
Correction, as analysts explain, is due to the fact that the profits of the largest companies with the blue chips did not meet the expectations of investors. Morgan Stanley emphasizes on the fact that all the good messages already received: the report to Amazon which demonstrated good performance and the report about the record growth of the U.S. economy.
In the US there was a historic upsurge in the economy
From the sale will be particularly affected technology companies, the consumer market and companies that have small capitalization.
The market started falling when the shares of Facebook fell by 24%. It happened on Wednesday, June 25, immediately after the closing of the main trades in the United States. Then also the quarterly financial report of the company disappointed analysts. On this day, Facebook has lost $135 billion market capitalization.
The important point for the market will be the Apple report, which will be broadcast tonight.
We will remind, in July, mark Zuckerberg entered the top three world’s richest people according to Bloomberg, displacing investor Warren Buffett.