I’m light on specifics here, because why should one pre-IPO tech stock’s failure lead to a broader failure? For example, a weak IPO for Snapchat shouldn’t affect Apple’s stock, which is already beat.
A lot is “invested” in the success of the Snap IPO, since a huge number of so-called “unicorns” (pre-IPO billion-dollar companies) like Uber are banking on a good IPO market to bring out cash for their investors.
One path, I could see, is that a Snap failure forces all the investors for these other IPOs to do fire sales, which sours the start-up culture. How it cascades to other industries, I don’t know. Maybe the headline is that all the job growth was in tech, so if that slows down, that sours the overall economy. Mix in some botched trade policies, and boom.
I don’t know. It’s just a feeling