Wall Street sinks after Facebook leads tech sell-off

Wall Street sinks after Facebook leads tech sell-off

USA stocks gained on Wednesday afternoon, ahead of an near-certain interest rate hike by the Federal Reserve, as Facebook Inc's (FB.O) shares reversed course to trade higher and energy stocks got a boost from rising oil prices.

Investors were also cautious ahead of the two-day policy meeting by the US Federal Reserve on Tuesday.

U.S. Treasury yields ended slightly lower as Fed policymakers signaled that only three rate hikes may be needed this year, and not the four increases many had expected.

Gains were however, limited as shares of Facebook extended their losses from Monday and fell 5.2% on reports that US Federal Trade.

USA stocks rebounded after Monday's tech sell-off, but Facebook continued to tumble amid a data scandal.

Those declines, caused by controversy over the alleged misuse of user data, filtered through the tech sector, with technology companies in the benchmark S&P 500 index down 2.0 percent for the week to date.

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"It's a general pullback in risk and technology tends to have a higher impact on the market".

About 94% of market participants expect interest rates to rise during the Fed meeting this week.

In 2.40pm trading in NY, the Dow Jones Industrial Average rose 0.5 percent, while the Nasdaq Composite Index added 0.2 percent.

"So far, we have seen low-level (trade) skirmishes, which are not material enough to affect the world economy".

The world's financial leaders were seeking to clearly endorse free trade and renounce protectionism amid concern that USA tariffs on steel and aluminum and looming actions against China could trigger a trade war that would hurt global growth.

The yield on 10-year United States government bonds reached 2.885% and short-term 2-year yield rose to 2.341%. "But if we see retaliation, and significant trade disruptions, it's a different order of magnitude (which) could begin to affect global growth forecasts", said Andrew Milligan, head of global strategy at Aberdeen Standard Investments.

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Stocks have struggled this year while bond yield have moved higher.

Fears of a trade war have also weighed on commodity prices, though tensions in the Middle East supported oil, lifting Brent futures nearly half a percent.

Winners and Losers: Shares of Facebook fell 2.56 percent as the social media company battles accusations that Cambridge Analytica, a private data firm, obtained information on 50 million users without permission.

The U.S. central bank has raised borrowing costs five times since late 2015.

At 12:29 p.m. ET, the S&P 500 was down 1.44 percent to 2,712.36, having spent the session below its 50-day moving average. The Nasdaq Composite dropped 15.35 points, or 0.21 percent, to 7,348.95.

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