U.S. Markets Rise: Facebook Faces Investigation

On Tuesday U.S. markets gained, will oil at a three week high, driving up the S&P energy index, while Facebook shares slumped 4.2 percent.

The S&P energy index, which was the best performing out of the 11 major S&P 500 sectors gained 0.95 percent boosted by rising oil prices amid fresh fears of a disruption in Venezuelan crude output and tensions in the Middle East.

Social Media giant, Facebook Inc. shares dropped 4.2 percent it lost $60 billion in value weighing heavily on equities.

Data of 50 Million Users Mined

Facebook faces an investigation from the U.S. Federal Trade Commission after it was disclosed that Cambridge Analytica mined personal data of 50 million users to help elect Donald Trump. Both U.S. and European lawmakers are asking how the firm obtained the information. Facebook might be in violation of breaking the terms of a 2011 consent decree.

Joint Investigation – Facebook

In a joint investigation, letters of demand have been sent to the company by both the New York and Massachusetts attorney generals.

Mark Zuckerberg hasn’t yet responded to the news.

The Dow Jones Industrial Average gained 0.52 percent or 127.22 points to 24,738.13.

S&P 500 rose 0.14 percent or 3.89 points to 2,716.81.

The Nasdaq Composite gained 0.21 percent or 15.68 points to 7,359.92.

Financial stocks gained 0.27 percent.

Focus is now on the Federal Reserve for news on whether there will be a tax hike.

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