Technology stocks take huge beating after Congress rejects bailout package

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Shares of technology companies have taken a huge beating on Monday (US time) as the House of Representatives failed to pass a bailout plan for the financial sector, with the vote for the rejection was 228 to 205, with two-thirds of the Republicans rejecting the bill with a significant number of Democrats. More information can be found at The Journal.

When the announcement happened, the shares on the Dow Jones fell more than 777.68, nearly 7 percent down from Friday, with the S&P 500 Index dropping 8.8 percent, or 106.46 points; and the tech-heavy Nasdaq Composite Index dropped more than 9 percent, or 199.61 points, to 1,983.73 – the first time it had reach below the 2,000 mark since 2005.

Among the hardest hit were Apple, who shares closed $105.26, 18 percent (or $22.98) down from Friday; AMD, who shares were nearly 17 percent down; and Google, who shared dropped more than 11 percent to close at $381. Those who managed to survive the storm of mass losses where Hewlett-Packard, Intel and Microsoft – with all of their shares fell more than 5 percent.

IBM, however, managed to have one of the narrowest percentage losses. They closed down 4 percent from Friday to $114.46.

While many companies declined to comment on the market plunge, Microsoft’s Senior Vice President and General Counsel Brad Smith released a statement, urging that the US House of Representatives reconsider their decision about rejecting the bailout plan:

“Microsoft strongly urges members of the U.S. House of Representatives to reconsider and to support legislation that will re-instill confidence and stability in the financial markets. This legislation is vitally important to the health and preservation of jobs in all sectors of the economy of Washington State and the nation, and we urge Congress to act swiftly.”

Financial Data Image from Yahoo Finance