The S&P 500 ended the week down 0.7 per cent, marking its worst result since April and its first loss in the previous three weeks. The Nasdaq composite fell 0.8 per cent and the Dow Jones Industrial Average fell 377 points, a 0.9 per cent downward spiral.
Another disaster saw U.S. stocks plummet on Friday as companies worldwide struggled to contain the fallout from a disruptive technology outage.
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 per cent on Friday and 9.84 per cent during the week, Nvidia is still up 144 .82 per cent this calendar year amidst a frenzy surrounding artificial intelligence technology.
Reasons behind yesterday's move
The Wall Street movement on Friday coincided with a significant global outage that caused delays for flights, banks, and even doctor's appointments.
The cybersecurity company 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.
Microsoft's stock fell 0.8 per cent and CrowdStrike's share fell 11.1 per cent. Microsoft's share shuttered on USD 437.11 on Nasdaq.
Microsoft share price |
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 USD 38.09 fall.
Crowdstrike share price |
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 travelers. 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 travelers 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 per cent, to 40,287.53.
