Apple, Facebook Stocks Tumble After Fed Chief’s Critique

Shares of tech giants were all down Tuesday morning following critical statements found in the Federal Reserve Chair Janet Yellen’s semiannual monetary report

WASHINGTON, DC - NOVEMBER 14: Nominee for the Federal Reserve Board Chairman Janet Yellen testifies during her confirmation hearing November 14, 2013 on Capitol Hill in Washington, DC. Yellen will be the first woman to head the Federal Reserve if confirmed by the Senate and will succeed Ben Bernanke.
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Dustin Volz
July 15, 2014, 9:50 a.m.

Tech stocks fell Tues­day morn­ing after Fed­er­al Re­serve Chair Janet Yel­len said their com­pan­ies may be over­val­ued.

“Valu­ation met­rics in some sec­tors do ap­pear sub­stan­tially stretched — par­tic­u­larly those for smal­ler firms in the so­cial-me­dia and bi­o­tech­no­logy in­dus­tries,” Yel­len wrote in a semi­an­nu­al mon­et­ary re­port to Con­gress.

This “stretch” was ap­par­ent even “des­pite a not­able down­turn in equity prices for such firms early in the year,” she ad­ded.

Face­book, Twit­ter, Google, and Apple were all down between 0.4 and 1 per­cent on the day. The Dow Jones in­dus­tri­al av­er­age has been ba­sic­ally flat.

Any long-term ef­fect on the stocks re­mains to be seen. All four staged af­ter­noon ral­lies to erase some, but not all, of their morn­ing slides.

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