First off,
Twitter (TWTR) stock fell 6.4% after banning President Donald Trump’s account. The President has roughly 88 million followers and analyst Crag Huber at Huber Research Partners tells
Barron’s some are assuming roughly 12 million to 15 million daily active users leave the platform. That’s about 6% to 8% of Twitter’s total 187 million daily active users, potentially justifying the stock’s reaction, which doesn’t necessarily account for any changes in profit margins.
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But Twitter doesn’t move the major indexes like
Apple (APPL) worth $2.2 trillion and down 2.3% does. Twitter’s market capitalization is just $38 billion. The point is that growth stocks across the board were having a rough day and rising interest rates which is consistent with firming economic and inflation expectations may be eating into appetite for growth stocks. Higher rates eat into corporate cash flows more so for growth stocks than for value. The 10-ye
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Stock ETFs Slip Amid Ongoing Political Turmoil and High Valuations January 11, 2021
Stocks and index ETFs slumped on Monday, as investors monitored stock valuations, the prospect of more coronavirus stimulus, and the fallout from last week’s Capitol building riots.
The Dow Jones Industrial Average slipped 0.23% to start the week of trading, as the S&P 500 fell 0.4% and the Nasdaq Composite dropped 0.7%. At one point, the Dow was off by over 200 points, but has recovered some losses as of noon EST.
Major stock ETFs are also struggling on Monday as well. The
Index ETFs had a solid performance last week as investors shook off concerns over the storming of the Capitol, instead concentrating on the prospect of additional fiscal stimulus after a Democratic sweep of Congress. The S&P 500 climbed for four consecutive days to record a 1.8% gain last week and a new all-time high. The Dow and the Nasdaq Composite added 1.6% and 2.4% in the prior week, respectively, also reaching fre