Meta Platforms Faces Decline Amid Market Weakness and Tariff Concerns

Meta Platforms Inc META saw its shares drop on Thursday as the overall market weakness impacted social media and technology stocks.

Market Overview

The decline occurred as Wall Street reversed Wednesday’s gains, with the market’s mood dampened by tariff threats and mixed economic data. U.S. President Donald Trump revealed a potential 200% tariff on European wine and spirits imports in response to the EU’s imposition of a 50% tariff on U.S. whiskey. This move has intensified global trade tensions, increasing investor fears of economic slowdowns and possible retaliatory actions, leading many to move away from high-growth tech stocks.

Economic Data Impact

In addition, the U.S. Producer Price Index for February remained flat month-over-month, significantly underperforming the anticipated 0.3% increase and January’s revised 0.6% gain. While typically, weaker inflation data might bolster equities, the lack of growth raised concerns about consumer and business spending, placing additional pressure on stock values.

Indices and Safe Havens

This broad market downturn was apparent in major indices: the Dow Jones dropped 1.1%, the S&P 500 fell by 1.2%, and the tech-heavy Nasdaq 100 slipped 1.7%. The sell-off reached across sectors, with every one except materials trading lower. In contrast, gold prices surged to a record high of $2,980 per ounce as investors sought safety in hard assets.

Sector Performance

Why It Matters: The decline in Meta’s stock reflects the broader challenges facing the tech sector, particularly for high-growth stocks sensitive to macroeconomic uncertainties. The Communication Services Select Sector SPDR Fund XLC, which includes Meta and other social media firms, fell 2.06%. Similarly, the Technology Select Sector SPDR Fund XLK also dropped by 1.90%, indicating widespread weakness in tech stocks.

Looking Forward

Meta’s stock movement is also part of a larger trend of tech stocks experiencing volatility as investors adjust their portfolios away from riskier assets. Continued concerns surrounding tariffs and macroeconomic pressures may result in ongoing challenges for Meta and other large-cap tech stocks in the weeks ahead.

META Price Action: On Thursday, Meta shares closed down 4.67%, resting at $590.64 at the time of this report, according to Benzinga Pro.

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