On Monday, Meta shares fell amid increasing market volatility as the US Federal Reserve is scheduled to meet this week.
Its stock price plunged by 3.66% to $300.31 apiece on September 18. Moreover, market analysts expect a further decline of 0.10% to $300.00 per share in the upcoming session.
The US Federal Reserve will meet on Tuesday and Wednesday to discuss market policies for the coming months. Likely to top their agenda is the Friday wipeout, which saw $4.00 trillion in stock options expire.
Tech companies such as Meta, NVDA, and the new IPO ARM were hit the hardest by the September 15 wipeout. Moreover, the mass expiry also obliterated the weekly gain of the S&P 500 and shed 1.80% from the Nasdaq Composite.
Additionally, the Friday mass expiry ended the eight-week winning streak of the greenback, closing the week with a 0.40% decline. In contrast, Treasury yields rose, including a 5.00% closing rate for the rate-sensitive two-year bonds.
Likewise, oil prices continued to rise as the workers strike at Chevron Corp contributed to the tightening supply.
Aside from possible new policies by the US Federal Reserve, Meta also braces itself for possible disruptions by ARM. ARM Holdings, a chip design company controlled by SoftBank, held an IPO on September 14 at $51.00 apiece.
US Federal Reserve Likely to Scrutinize Meta
Public scrutiny grows regarding how much more volatile Meta and other tech companies are when compared to their counterparts. Policymakers like the US Federal Reserve meet to discuss measures to curtail such volatility.
For instance, a group of writers sued Meta last week for copyright infringement relating to its Llama AI. Pulitzer Prize winner Michael Chabon, the group’s representative, said the company misused their works to train the AI software.
Furthermore, the plaintiffs claim that the Facebook parent company used pirated versions of their writings for Llama’s large language model. This large language model uses datasets to enable the Llama AI to make human-like responses to human text prompts.
In July, a different group of authors headed by comedian Sarah Silverman sued Meta for copyright infringement.