Stocks fell on Wall Street Thursday as Facebook parent company Meta plunged 24.9 percent, erasing more than $220 billion in market value, the largest drop in history.
Meta’s lofty stock price, as with several other big communications and technology companies, has an outsize influence on markets because of the company’s huge size. That means a big swing in either direction for such a company can do much to sink or lift the broader market.
The S&P 500 index fell 1.4 percent as of 11:29 a.m. Eastern and the tech-heavy Nasdaq fell 2.2 percent. The Dow Jones Industrial Average fell 260 points, or 0.7 percent, to 35,383.
Meta sank after forecasting revenue well below analysts’ expectations for the current quarter, a disappointment for a company that investors have become accustomed to delivering spectacular growth. It also reported a rare decline in profit due to a sharp increase in expenses as it invests in transforming itself into a virtual reality-based company.
The steep drop weighed on fellow social media company Twitter, which shed 5.4 percent. Snapchat’s parent company Snap sank 20.5 percent and Pinterest lost 8 percent.
Communications and technology stocks had some of the biggest losses. The sectors have been behind much of the choppiness in markets since the beginning of the year as investors shift money in expectation of rising interest rates. Higher rates make shares in high-flying tech companies and other expensive growth stocks relatively less attractive to investors.
Bond yields rose sharply on Thursday. The yield on the 10-year Treasury note, which is used as a benchmark to set interest rates on mortgages and many other kinds of loans, rose to 1.83 percent from 1.76 percent late Wednesday.
Wall Street anticipates the Federal Reserve’s first interest rate hike to come in March and are cautiously watching for how it paces future increases to help fight rising inflation.
Investors also have their eyes on monetary policy updates in Europe. The Bank of England raised interest rates for the second time in three months on Thursday, putting the United Kingdom far ahead of the rest of Europe and the US in moving to tame surging inflation that is squeezing consumers and businesses.
In contrast, the European Central Bank doesn’t plan to raise rates until 2023 despite record inflation, blaming it on temporary factors. But it has decided the economic recovery is strong enough to start carefully dialing back some of its stimulus efforts over the next year.
Spotify slumped 13.2 percent after the leading music-streaming service gave investors a weak forecast for a closely watched measure of its earnings. The company has come under pressure after Neil Young pulled his music from its platform to protest the spreading of COVID-19 misinformation by Spotify’s star podcaster, Joe Rogan. Other musicians have followed.
The losses on Wall Street threaten to end a run of solid daily gains for the major indexes this week, though they are still on track for weekly gains.
Investors had several earnings reports to review, with mixed outcomes for stocks. Wireless carrier T-Mobile rose 10.3 percent after reporting strong results. Health insurer Humana rose 6.2 percent and upscale clothing company Ralph Lauren rose 5.3 percent after also reporting encouraging financial results.
The slump for stocks was broad. Retailers, industrial companies and energy companies also fell. Household and personal goods makers eked out gains.
Investors are also preparing for the latest update on the recovering jobs market. The Labor Department will release its monthly report for January on Friday.
Stocks fall as Facebook parent company Meta plummets 25 percent
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Stocks fall as Facebook parent company Meta plummets 25 percent
- Meta shares fall by 24.9 percent on Wall Street, erasing more than $220 billion in market value, the largest drop in history
- The steep drop weighed on fellow social media company Twitter, which shed 5.4 percent
EU bans 4 more Russian media outlets from broadcasting in the bloc, citing disinformation
- The EU has already suspended Russia Today and Sputnik among several other outlets since February 2022
BRUSSELS: The European Union on Friday banned four more Russian media outlets from broadcasting in the 27-nation bloc for what it calls the spread of propaganda about the invasion of Ukraine and disinformation as the EU heads into parliamentary elections in three weeks.
The latest batch of broadcasters consists of Voice of Europe, RIA Novosti, Izvestia and Rossiyskaya Gazeta, which the EU claims are all under control of the Kremlin. It said in a statement that the four are in particular targeting “European political parties, especially during election periods.”
Belgium already last month opened an investigation into suspected Russian interference in June’s Europe-wide elections, saying its country’s intelligence service has confirmed the existence of a network trying to undermine support for Ukraine.
The Czech government has imposed sanctions on a number of people after a pro-Russian influence operation was uncovered there. They are alleged to have approached members of the European Parliament and offered them money to promote Russian propaganda.
Since the war started in February 2022, the EU has already suspended Russia Today and Sputnik among several other outlets.
Israeli soldiers post abusive videos despite army’s pledge to act: BBC analysis
- The BBC analyzed 45 photos and videos posted online by Israeli soldiers that showed Palestinian prisoners in the West Bank being abused and humiliated
LONDON: Israeli soldiers continue to post videos of abuse against Palestinian detainees despite a military pledge to take action against the perpetrators, analysis by the BBC has found.
The broadcaster said it had analyzed 45 photos and videos posted online by Israeli soldiers that showed Palestinian prisoners in the West Bank being abused and humiliated. Some were draped in Israeli flags.
Experts say the footage and images, which showed Palestinians being stripped, beaten and blindfolded, could breach international law and amount to a war crime.
The Israel Defense Forces said some soldiers had been disciplined or suspended for “unacceptable behavior” but did not comment on the individual cases identified by the BBC.
The most recent investigation into social media misconduct by Israeli soldiers follows a previous inquiry in which BBC Verify confirmed Israeli soldiers had filmed Gazan detainees while beating them and then posted the material on social platforms.
The Israeli military has carried out arbitrary arrests across Gaza and the West Bank, including East Jerusalem, since the Hamas attack on Oct. 7. The number of Palestinian prisoners in the West Bank has since risen to more than 7,060 according to the Commission of Detainees’ Affairs and the Palestinian Prisoner Society.
Ori Givati, spokesperson for Breaking the Silence, a non-governmental organization for Israeli veterans working to expose wrongdoing in the IDF, told the BBC he was “far from shocked” to hear the misconduct was ongoing.
Blaming “current far-right political rhetoric in the country” for further encouraging the abuse, he added: “There are no repercussions. They [Israeli soldiers] get encouraged and supported by the highest ministers of the government.”
He said this played into a mindset already subscribed to by the military: “The culture in the military, when it comes to Palestinians, is that they are only targets. They are not human beings. This is how the military teaches you to behave.”
The BBC’s analysis found that the videos and photos it examined were posted by 11 soldiers of the Kfir Brigade, the largest infantry brigade in the IDF. None of them hid their identity.
The IDF did not respond when the BBC asked about the actions of the individual soldiers and whether they had been disciplined.
The BBC also attempted to contact the soldiers on social media. The organization was blocked by one, while none of the others responded.
Mark Ellis, executive director of the International Bar Association, urged an investigation into the incidents shown in the footage and called for the IDF to discipline those involved.
In response to the BBC’s investigation, the IDF said: “The IDF holds its soldiers to a professional standard … and investigates when behavior is not in line with the IDF’s values. In the event of unacceptable behavior, soldiers were disciplined and even suspended from reserve duty.
“Additionally, soldiers are instructed to avoid uploading footage of operational activities to social media networks.”
However, it did not acknowledge its pledge to act on BBC Verify’s earlier findings in Gaza, according to the broadcaster.
4 journalists killed in Gaza as death toll climbs above 100
- 104 Palestinian media workers reported dead, along with 3 Lebanese and 2 Israelis
LONDON: The Gaza Media Authority on Thursday said that four journalists had been killed in an Israeli airstrike, bringing the total number of journalists killed in the conflict to more than 100.
The victims were identified as Hail Al-Najjar, a video editor at the Al-Aqsa Media Network; Mahmoud Jahjouh, a photojournalist at the Palestine Post website; Moath Mustafa Al-Ghefari, a photojournalist at the Kanaan Land website and Palestinian Media Foundation; and Amina Mahmoud Hameed, a program presenter and editor at several media outlets, according to the Anadolu Agency.
The Gaza Media Office said the four were killed in an Israeli airstrike, but did not provide additional details on the circumstances surrounding their deaths.
A total of 104 Palestinian journalists have been killed since the conflict began on Oct. 7. Two Israeli and three Lebanese media workers also have been killed.
The latest loss adds to the already heavy toll on media workers, with the Committee to Protect Journalists saying the Gaza conflict is the deadliest for journalists and media workers since it began keeping records.
Israel is continuing its offensive on Gaza despite a UN Security Council resolution demanding an immediate ceasefire.
On Thursday, South Africa, which has brought a case accusing Israel of genocide to the International Court of Justice, urged the court to order Israel to halt its assault on Rafah.
According to Gaza medical authorities, more than 35,200 Palestinians have been killed, mostly women and children, and over 79,200 have been injured since early October when Israel launched its offensive following an attack by Hamas.
Russia outlaws SOTA opposition news outlet
- Authorities said outlet tries to destabilize the socio-political situation in Russia
- Move could criminalize SOTA content and puts its reporters at risk of arrest
LONDON: Russia declared opposition media outlet SOTA “undesirable” on Thursday, a move that could criminalize the sharing of its content and put its reporters at risk of arrest.
Authorities in Russia have declared dozens of news outlets, think tanks and non-profit organizations “undesirable” since 2015, a label rights groups say is designed to deter dissent.
In a statement, Russia’s Prosecutor General accused SOTA of “frank attempts to destabilize the socio-political situation in Russia” and “create tension and irritation in society.”
“Such activities, obviously encouraged by so-called Western inspirers, have the goal of undermining the spiritual and moral foundations of Russian society,” it said.
It also accused SOTA of co-operating with TV Rain and The Insider, two other independent Russian-language outlets based outside of the country that are linked to the opposition.
SOTA Project, which covers opposition protests and has been fiercely critical of the Kremlin, denied it had anything to do with TV Rain and The Insider and rejected the claims.
But it advised its followers in Russia to “remove reposts and links” to its materials to avoid the risk of prosecution. SOTA’s Telegram channel has around 137,000 subscribers.
“Law enforcement and courts consider publishing online to be a continuing offense. This means that you can be prosecuted for reposts from 2023, 2022, 2021,” it said.
SOTA Project was born out of a split with a separate news outlet called SOTAvision, which still covers the opposition but distanced itself from the prosecutors’ ruling on Thursday.
Since launching its offensive in Ukraine, Moscow has waged an unprecedented crackdown on dissent that rights groups have likened to Soviet-era mass repression.
Among other organizations labelled as “undesirable” in Russia are the World Wildlife Fund, Greenpeace, Transparency International and Radio Free Europe/Radio Liberty.
OpenAI strikes deal to bring Reddit content to ChatGPT
- Deal underscores Reddit’s attempt to diversify beyond its advertising business
- Content will be used to train AI models
LONDON: Reddit has partnered with OpenAI to bring its content to popular chatbot ChatGPT, the companies said on Thursday, sending the social media platform’s shares up 12 percent in extended trade.
The deal underscores Reddit’s attempt to diversify beyond its advertising business, and follows its recent partnership with Alphabet to make its content available for training Google’s AI models.
ChatGPT and other OpenAI products will use Reddit’s application programming interface, the means by which Reddit distributes its content, following the new partnership.
OpenAI will also become a Reddit advertising partner, the company said.
Ahead of Reddit’s March IPO, Reuters reported that Reddit struck its deal with Alphabet, worth about $60 million per year.
Investors view selling its data to train AI models as a key source of revenue beyond Reddit’s advertising business.
The social media company earlier this month reported strong revenue growth and improving profitability in the first earnings since its market debut, indicating that its Google deal and its push to grow its ads business were paying off.
Reddit’s shares rose 10.5 percent to $62.31 after the bell. As of Wednesday’s close, the stock is up nearly 12 percent since its market debut in March.
