Facebook shares stumble over reports of data breach

Posted at 7:13 AM, Mar 19, 2018
and last updated 2018-03-19 14:34:42-04

NEW YORK (AP AND CNN) — A sharp loss for Facebook is helping to pull technology companies lower as stock indexes decline in early trading.

Facebook slumped 5.3 percent early Monday. The company is facing new criticism following reports that a data mining firm employed by the Trump campaign improperly kept data on tens of millions of users.

CNN reported that that Cambridge Analytica, a data firm with ties to President Donald Trump's campaign, reportedly gained access to information about 50 million Facebook users.

The data was collected by a professor for academic purposes in accordance with Facebook rules, the company said. But then the information was transferred to third parties, including Cambridge Analytica. The transfer violated Facebook policies.

Facebook's stock was on pace for its biggest loss in four years. The sharp loss also dragged tech companies lower for as U.S. stock indexes skid. Chipmaker Nvidia lost 1.1 percent.

Shopping mall owner GGP was unchanged percent after Reuters reported the company had received a revised takeover offer.

The S&P 500 fell 17 points, or 0.6 percent, to 2,734.

The Dow Jones industrial average lost 174 points, or 0.7 percent, to 24,772. The Nasdaq fell 69 points, or 0.9 percent, to 7,412.

Bond prices fell. The yield on the 10-year Treasury rose to 2.86 percent.