Disney Drops on Wall Street, Facebook Mom Rises After Mass Layoff
Disney was among the biggest losers on the New York stock exchanges on Wednesday. Despite stronger-than-expected customer growth from its streaming service Disney+, the entertainment group had a disappointing quarter and was lowered by more than a tenth in the opening minutes.
Meta Platforms, the company behind Facebook, WhatsApp and Instagram, announced a mass layoff as expected and gained almost 6 percent.
Investors also processed the first results of the exciting midterm elections in the United States. According to leading US media, Democrats appear to be losing control in the House of Representatives to Republicans. However, whether the Democrats will also lose the majority in the Senate is still unclear.
Wall Street is also mainly looking forward to the critical US inflation figure, which will be announced on Thursday. The US central bank has already raised interest rates sharply to fight inflation. Investors are, therefore, curious as to whether these interest rate hikes are already starting to have an effect and whether inflation is showing signs of cooling.
Shortly after the start of trading, the Dow Jones index was 0.7 percent lower at 32,932 points. The broad S&P 500 fell 0.8 percent to 3,797 points, and the tech gauge Nasdaq dropped 1 percent at 10,513 points.
Mark Zuckerberg, the CEO of Meta Platforms, has announced that he will cut more than 11,000 jobs worldwide. That amounts to 13 percent of all jobs at the company, which also has an office in Amsterdam.
Tesla lost more than 1 percent. CEO Elon Musk has sold nearly $4 billion in shares of the electric vehicle manufacturer. The sale occurred just days after completing his acquisition of social media company Twitter, for which he claims he paid too much. In August, Musk also sold Tesla shares and promised not to sell any more.
Crypto exchange Coinbase continued the decline and fell almost 6 percent due to the continued decline in the price of cryptocurrencies such as bitcoin and ether. Additionally, the crypto world was shaken earlier this week when crypto exchange Binance announced it would take over rival FTX, which would suffer from liquidity problems.