Shares in major tech companies faced pressure on Monday following their actions to restrict President Donald Trump’s online presence, leading to a decline in the stock market. Twitter’s stock dropped by 10.6 percent at the start of trading after it permanently suspended Trump’s account. Facebook also saw a 3.8 percent decline after freezing Trump’s access to its platforms. Meanwhile, Apple, Amazon, and Google’s parent company Alphabet faced market pressure after removing the conservative social media app Parler from their services.
The Dow Jones Industrial Average fell over 247 points, opening at 30,850.65. The S&P 500 slipped by 0.89 percent, and the Nasdaq Composite Index, heavily influenced by tech stocks, declined by 1.13 percent.
Last week, the stock market reached record highs as investors bet on smoother approval for more pandemic relief under President-elect Joe Biden, following the Democratic control of Congress. Despite concerns following the Capitol riots, hopes for a strong economic recovery and the ongoing vaccine rollout kept market sentiment positive. However, as the new week began, concerns about market stability and the fallout from the Capitol incident led to a pullback in stock prices.
Investors are now weighing the impact of Big Tech’s actions against Trump and how it could affect the legal protections that shield social media platforms from liability for user-generated content. This uncertainty contributed to the decline in tech shares and broader market caution.
