Tuesday Tech Crash

Nvidia stock was down 7.76% after the firm said it would suspend its self driving car program in lieu of the Uber accident. This was a bad day to have any negative headlines about a tech company because there was a wave of selling. Facebook stock renewed its downturn as it fell 4.9% on fears of regulatory action. Privacy concerns are also gaining steam as users become weary of being tracked. The stock is off 21.17% from its all-time high. It closed right at the low made on yesterday. It is technically important for it to hold that level on Wednesday. With data privacy in the news, there were stories about how Google has as much, if not more data than Facebook does. With the possibility of regulation on the way firms handle people's data and the negative headlines on the nascent self driving car industry, Alphabet stock fell 4.47%. It is down 15.21% from its January high and is close to the low it made in February.

The chart below shows the FANG+ index had its worst decline in 3 years. Netflix stock was down 6.14% even though there weren't any major negative headlines about the firm. Tesla stock isn't in this index, but it's one of the story tech stocks which trades on momentum. It fell 8.22% on news the National Transportation Safety Board will be investigating a fatal crash a Tesla was in last week. Tesla stock is down 21.89% from its all-time closing high in February as the market worries about Model 3 production delays. The firm's debt was downgraded by Moody's as speculative bond buyers are fleeing the name. Tesla is a firm which is highly dependent on financial conditions because it relies on issuing junk debt to stay afloat and invest in creating new products.