Stocks fall on stimulus inaction, Facebook lawsuit
Stocks backed off record highs on Wednesday as stimulus talks seemed to go nowhere.
The Dow fell 105 points. The S&P 500 gave up 29. The Nasdaq dropped 243 points.
With the stock market currently at pricey levels - it is at risk of succumbing to even the smallest of disappointments, says Gerber Kawasaki CEO Ross Gerber.
"Well, right now, we're dealing with extremely elevated markets that are basically fueled by low interest rates of money printing and hope. So I think the market's a little bit ahead of itself and euphoria over the vaccine and and a little bit more reality will come into play over the next several months. So we're very cautious on the markets. At the current valuations, we've been maintaining a very conservative perspective. I haven't turned bullish yet overall on the economy."
Tech had a particularly bad session.
Facebook was sued by the Federal Trade Commission and a big coalition of U.S. states. The lawsuit accused the social media giant of breaking anti-trust law. Shares of Facebook slid two percent.
Hi-flying tech names like Zoom and DocuSign were downgraded by J.P. Morgan. Zoom finished 6-1/2percent lower. DocuSign lost roughly 6 percent.
A reminder of the current-day tech craze came by way of DoorDash. The stock surged more than 85 percent in one of the strongest market debuts of the year. By the end of the trading session, the market valuation for the food delivery start-up was larger than dining chains Wendy's, Chipotle, Domino's and Dunkin' Brands combined. The stock closed at $189 a share after its IPO priced at $102 a share.
