The S&P 500 ended the week down 0.7 percent, marking its worst result since April and its first loss in the previous three weeks. The Nasdaq composite fell 0.8 percent and the Dow Jones Industrial Average fell 377 points, a 0.9 percent downward spiral. Another disaster saw US stocks plummet on Friday as companies worldwide struggled to contain the fallout from a disruptive technology outage.
The Wall Street movement on Friday coincided with a significant global outage that caused delays for flights, banks, and even doctor’s appointments. Microsoft’s stock fell 0.8 percent and cybersecurity firm CrowdStrike’s share fell 11.1 percent. Microsoft’s share shuttered on USD 437.11 on Nasdaq. On the other hand, CrowdStrike’s stock went into a downward spiral, closing at USD 304.96. The Wall Street Bears kicked it down with a huge move in the red, amounting to a USD 38.09 fall.
CrowdStrike said that it had implemented a fix and that the problem that was thought to be causing the outage was not a security incident or cyberattack. According to the company, a malfunctioning update that was sent to Windows-powered PCs was the cause of the issue.
Also Read: Flight operations, businesses impacted amid global Microsoft outage
Meanwhile, the S&P 500 only reached its most recent all-time high on Tuesday. First, there was criticism that the Big Tech stocks, which have been the market’s biggest winners, had become too expensive.
Despite falling 2.6 percent on Friday, and 9.84 percent during the week, Nvidia is still up 144.82 percent this calendar year amidst a frenzy surrounding artificial intelligence technology.
CrowdStrike’s stock performance
Although the stock of CrowdStrike recovered some of its losses during the day, it still had its worst performance since 2022. The stocks of competing cybersecurity companies surged.
The outage disrupted airport check-in processes globally, resulting in lengthy lineups of irate travellers. U.S. airline stocks were initially aided in their decline, but they soon recovered some of their losses. Airlines issued a waiver to facilitate travel plan modifications and stated that many travellers may encounter delays.
At 5,505.00, the S&P 500 dropped 39.59 points. The Nasdaq fell 144.28 to 17,726.94, while the Dow fell 377.49, or 0.9 percent, to 40,287.53.
(The article is published under a mutual content partnership arrangement between The Free Press Journal and Connected to India)
