Chinese Taxi App Didi Plummets on Wall Street

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The parent company of the Chinese taxi app Didi fell hard on Tuesday at the opening of the stock exchanges on Wall Street. The company lost almost 23 percent in market value due to an intervention by the Chinese government. He forced Didi to remove his app from various app stores because the company illegally collected data from users.

 

Didi had just gone public in New York last week. But, investors have not yet been able to comment on the news because Wall Street was closed Monday for Independence Day. That national holiday fell on Sunday but gave traders a day off on Monday.

The tighter controls on tech companies from the Chinese government already made investors nervous. In addition, there was a warning that China wants to monitor companies with a foreign listing more closely. As a result, companies such as Alibaba, Baidu and JD.com fell to 3.4 percent.

Energy companies continued to receive attention as a result of volatile oil prices. The OPEC+ countries failed to reach an agreement on increasing oil production. As a result, U.S. oil reached its highest level since 2014 on Tuesday but then fell 0.9 percent cheaper at $74.56. Brent oil lost 1.9 percent to $75.67. Oil and gas companies such as Chevron and ExxonMobil fell to 2.1 percent.

Furthermore, investors are mainly waiting for the Federal Reserve to release its latest policy meeting minutes. They hope to hint from this when the central bank wants to reduce corona support and whether policymakers have started to think differently about interest rate changes. It was previously announced that the Fed expects to raise interest rates next year, where it was previously thought to be 2023.

The Dow-Jones index fell 0.4 percent in the first minutes of trading to 34,643 points. The broad-based S&P 500 was down 0.2 percent at 4344 points, and tech exchange Nasdaq rose 0.1 percent to 14,650 points.

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