Why Block, MercadoLibre, and DoorDash Were Plunging Today

Shares of Block (NYSE: SQ), MercadoLibre (NASDAQ: MELI), and DoorDash (NYSE: DASH) were plunging again today, down 5.6%, 4.5%, and 7.5% respectively, as of 1 p.m. ET.

There wasn't any company-specific news today, but consumer- and small-business-facing apps continued to correct in a difficult environment. Today at 2 p.m., the minutes of the latest Federal Reserve meeting will be released, along with commentary from Chair Jay Powell.

Many suspect the Fed will hike interest rates by 50 basis points, but the fear is that there will be even more hawkish talk on inflation and the path of future rate hikes this year. That could affect the discount rate investors apply to future earnings, which would hurt the intrinsic value of growth stocks such as these three. In addition, hiking rates too much could throw the economy into a downturn, which would affect consumer-facing services such as these as well.

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Source Fool.com