Under-fire Facebook leads stocks lower

US stocks sank about 2pc yesterday with the Dow Jones Industrial Average shedding nearly 400 points, as Facebook led a sell-off in technology stocks on reports that the social media company’s user information was misused.

Facebook shares tumbled 7.1pc on reports that a political consultancy that worked on US President Donald Trump’s campaign gained inappropriate access to data on more than 50 million users, sparking broader concerns about data privacy and security.

The stock was set for its worst day since September 2012 and was down about 13pc from its all-time high on February 1.

Republican Senator Marco Rubio said he believed some internet companies have grown too fast to digest their responsibilities and obligations.

Amazon, Apple, Netflix and Alphabet – members of the so-called FAANG group of stocks, along with Facebook – were down between 1.7pc and 7.2pc. “Tech companies all use data one way or the other as part of their businesses. They are going to get a lot more scrutiny over what data they are collecting and how they are using it,” said Shawn Cruz at TD Ameritrade in Chicago.

Europe’s benchmark STOXX 600 index fell 1.1pc as investors held their breath ahead of Wednesday’s US Federal Reserve meeting which marks the debut for new Fed Chair Jerome Powell, and a likely interest rate hike.

Declines accelerated in the afternoon as the UK’s FTSE fell to a 15-month low after Britain and the European Union agreed on a post-Brexit transition which boosted sterling but weighed on the internationally exposed share index.

In a quiet post-St Patrick’s day session in Dublin the Iseq was down 0.35pc at 6,670.55.