Global stocks faced challenges on Friday due to an unprecedented global IT outage affecting travel, trading, and support services. Major US tech companies like CrowdStrike and Microsoft experienced disruptions, leading to drops in their stock prices. The cybersecurity firm CrowdStrike saw a 21% decline in premarket trading, while Microsoft shares fell 2% due to issues with its cloud services. Other notable movers included Bank of America, Intuitive Surgical, Netflix, and SunPower.
The recent tech disruptions come as the Nasdaq experienced a 3% decline over the week, prompting investors to shift focus to smaller companies. The Russell 2000 index, however, saw a 2.3% increase during the same period. Despite the losses triggered by the IT outages, some experts believe that investors could take advantage of the situation to buy risk amid lower liquidity summer trading.
The article also highlighted movements in European markets, with the Stoxx 600 index falling for a fifth day. Companies like LSE Group, Sartorius AG, and Ubisoft Entertainment SA saw significant stock price movements. Asian stocks also declined, with concerns over geopolitics and China’s economy contributing to the negative sentiment. The MSCI Asia Pacific Index was on track for its biggest weekly fall since mid-April.
In the foreign exchange market, the US dollar was firmer against most peers, while the euro and pound softened. Commodity prices saw fluctuations, with crude oil slightly lower and precious metals like gold and silver experiencing losses. Geopolitical tensions were also highlighted, including an explosion in Tel Aviv attributed to an Iranian-made drone.
Looking ahead, there were no major economic data releases scheduled for the day. Central bank speakers, including Fed’s Williams and Bostic, were set to deliver remarks. Overall, the global markets were navigating through challenges posed by the IT outages and geopolitical uncertainties, with investors closely monitoring the situation for potential opportunities.