Meta Platforms, a company listed on the NASDAQ, saw a particularly significant drop of over 4% after being accused of antitrust violations by the European Union for limiting competition in the online classified ads market. If found guilty, Meta could face a fine of up to $11.8 billion. In addition to Meta's regulatory issues, technology companies such as Alphabet, Apple, and Microsoft saw decreases of over 1% due to the rise in Treasury yields, which reflect the expectation for longer-term higher interest rates following the Federal Reserve's recent rate hike.
The consumer discretionary sector was also affected by the decline of casino and travel stocks, including Caesars Entertainment, MGM Resorts, and Wynn Resorts, as China experiences a resurgence of COVID-19 cases. Tesla's stock also turned negative after it was speculated that CEO Elon Musk may step down from Twitter.
On the other hand, Disney saw a drop of nearly 5% after its latest film, "Avatar: The Way of the Water," underperformed at the domestic box office. The cryptocurrency market was also impacted by the bankruptcy of FTX, leading Coinbase Global to reach new 52-week lows.