Tech stocks plunge after Brexit vote

Technology and other Bay Area stocks nose-dived in early trading on Friday after voters in the United Kingdom decided to exit the European Union, creating a wave of uncertainty that washed away share prices around the globe.

The SV 150 Index tumbled 2.5 percent, following a pattern that seemed to indicate that tech shares were being hit a bit harder than stocks in general.

Similarly, the tech-focused Nasdaq nose-dived 2.6 percent, the blue chip Dow Jones Industrial Average fell 2.2 percent and the broad-based S&P 500 dropped 2.3 percent.

None of the big tech companies in Silicon Valley were able to avoid the bloodbath on Wall Street on “Brexit Friday.”

Cupertino-based Apple was down 2.4 percent. Mountain View-based Alphabet, parent of Google, plunged 2.1 percent. Menlo Park-based Facebook dropped 1.5 percent. Redwood City-based Oracle tumbled 2.8 percent. Santa Clara-based Intel fell 2.9 percent.

San Jose-based Cisco Systems plummeted 2.8 percent. Foster City-based Gilead Systems slid 2.2 percent. San Francisco-based Salesforce dipped 2.7 percent. San Jose-based Adobe was down 2.6 percent. Los Gatos-based Netflix slumped by 2.9 percent.

The two worst-performing stocks on the SV 150 were Los Gatos-based 8×8, and San Jose-based Extreme Networks, both down 6 percent.

The best-performing company from the SV 150 Index was Fremont-based Synnex, up 2.3 percent.

Some analysts believe that technology companies might have differing fortunes depending on their business operations in the U.K. and other European nations.

Plus, big American tech companies such as Google, Apple and Microsoft have undergone varying levels of antitrust scrutiny and litigation.

The Brexit vote raised uncertainties as basic as to whether the United Kingdom would survive intact in years to come and whether the euro would continue as a viable currency.

The domino effect of the murky outlook in Europe spread to U.S. companies and those in Silicon Valley that have significant market interests in England, Ireland, Scotland and other parts of Europe.

 

Photo: British Prime Minister David Cameron, who said he will resign after the Brexit vote to leave, is seen in this picture leaving a polling place with his wife after casting a vote on the referendum on June 23, 2016. (Getty Images)

 

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