On Thursday, U.S. shares fell, with the Nasdaq diving more than 2%, as Facebook-owner Meta platforms dour forecast jolted the broader tech sector and threatened to upend a nascent recovery in stock markets. The shares of Meta went as lows as 24.5% and were set for their biggest single-day decline ever. For its disappointing outlook, the company blames Apple’s privacy changes and increased competition from rivals such as TikTok. The share slump is set to wipe out more than $200 billion from Meta’s market cap, which would shave off about 0.9% from Nasdaq’s market value and about 0.5% from S&P 500.

The tech-heavy Nasdaq fell 2.2% as shares of other social media companies also took a beating. Twitter and Pinterest Inc fell more than 6%, while Snapchat lost 18.8%. Big tech stocks such as Alphabet Inc and Microsoft Corp fell about 0.5% and 1.0%, respectively, while Amazon.com Inc, scheduled to report results later in the day, declined 6.3%. “This is definitely shaking investors’ resolve around the recent relief rally that we’ve been seeing in tech,” said Robert Pavlik, chief investment strategist at SlateStone Wealth LLC in New York. “There’s also a bigger problem going on, and that is higher interest rates and inflation. This is sort of shaking out the weak hands, that have been around trying to ride this bounce that’s been going on in tech.” All 11 major S&P 500 sectors declined in early trading, with communication services dropping 5.2% and leading losses.