Facebook’s stock set to enter bear-market territory after down 3.2% in morning trade
The U.S. stock market has been partying all throughout July, and a hangover is coming.
The decline “could very well have a greater negative impact on the average portfolio if it’s centered on tech, consumer discretionary and small-caps, as we expect.”
With shares down 3.2% in morning trade, Facebook Inc. FB, -2.19% has entered bear-market territory. The stock has now fallen 22% from its record close of $217.50 on July 25, and will officially be in a bear market if it closes at that level.
Many chart watchers say a new bear market starts after a fall of 20% or more from a bull-market high.
Shares of Facebook sold off 19% in Thursday’s session after the company delivered a sharp warning about its future revenue growth, and the stock dropped another 0.8% in Friday’s session.
Facebook’s stock is down 2.7% so far in 2018, while the S&P 500 SPX, -0.58% has gained 5.3%.