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Dow drops in wake of global outage

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U.S. stocks fell on Friday Global IT outage Wall Street saw its stocks fall as stock prices fell; The Dow ended its winning streak Technology stocks continue to crash.

Dow Jones Industrial Average (^DJI) fell about 0.9%, while the blue-chip index fell more than 1%.^GSPC) fell 0.5%, while the tech-heavy Nasdaq Composite Index (^IXIC) decreased by 0.5%.

Stocks are facing weekly losses after a volatile few trading days that saw technology stocks sell off sharply, with AI-focused chip stocks taking a hit. Investors have pulled out of the tech giants that have driven the recent rally. Lowercasefrom some people benefit from lower interest rates.

Early in the morning, investors An ‘unprecedented’ failure Attacks on computer systems around the world caused flights to be canceled and affected banks, telecommunications companies, media companies, and others.CRWD) saidix was installed This bug was fixed by Microsoft’s (MSFT) system.

CrowdStrike shares plunged as much as 20% as the outage spread, but by the open they had pared the decline to about 12%. Microsoft shares, which were working to resolve issues with its Azure cloud services, also fell slightly but are recovering.

Meanwhile, Republican presidential candidate Donald Trump In his nominating speech On Thursday, he said he would end the electric vehicle mandate on day one. Markets wake up to the “Trump trade” — How would the former president’s policies affect his wealth if he were to take over the White House?

live7 Updates

  • Tesla shares fall 4% after President Trump says he will repeal the “electric vehicle” mandate

    Electric vehicle stocks fell on Friday after former President Donald Trump criticized the Biden administration’s clean energy policies at the Republican National Convention, calling them “the new green scam.”

    “I will end the electric vehicle mandate on day one, saving the American auto industry from the total destruction that is currently occurring and saving American customers thousands of dollars per car,” President Trump said.

    The comments were made despite support from Tesla (TSLA) CEO Elon Musk. Shares of the EV giant fell 4% on Friday. Rivian (Riven) and Lucid (LCID) also fell by more than 1%.

    The Biden administration has not mandated EVs, but critics have called on the Environmental Protection Agency Automobile regulations aimed at reducing carbon emissions It was introduced in March as a way to encourage the uptake of electric vehicles.

  • Technology and consumer discretionary led the decline

    Nearly every sector in the S&P 500 fell on Friday, with technologyXLK) and Consumer Goods (XLY) stocks led the decline.

    Materials Division (XLLB) also fell 1%. All three major stock averages were down by 11:45 a.m. ET.

    health care (Chapter 45) was the only sector to post a slight increase.

  • Netflix shares rise after quarterly earnings

    Netflix (NFLX) shares rose their most since late January before paring gains following the announcement by the streaming giant. Better-than-expected quarterly results.

    Netflix membership grew 34% quarter-over-quarter, driven by the discontinuation of its basic plan in some markets.

    Netflix shares rose 3% at the start of trading but later gave up the gains.

  • CrowdStrike drops 10% due to global IT outage

    Cloud Strike (CRWD) shares fell 10% on Friday. An ‘unprecedented’ failure Computer systems that affected everything from airlines to hospitals.

    Early Friday morning, CrowdStrike CEO George Kurtz said:ix was installed Due to a malfunction.

    On social media platform X, Kurtz wrote that “CrowdStrike is actively working with customers affected by the flaw found in a single content update for Windows hosts.”

  • Stock prices remain almost unchanged after global IT outage

    On Friday, the stock price Global IT outageWall Street was struggling to recover from selling pressure that sent all major stock averages lower on Thursday.

    Dow Jones Industrial Average (^DJI) fell 0.2% after dropping more than 1% in the previous trading session.

    S&P 500 (^GSPC) remained flat, while the Nasdaq Composite Index (^IXIC) fell 0.2%.

    Investors have been pulling out of tech stocks this week, leading to declines in AI-focused chip stocks.

    Earlier this morning, investors An ‘unprecedented’ failure Computer systems that work with CrowdStrike (CRWD) and Microsoft-based (MSFT) platform.

    CrowdStrike CEO George Kurtz said:ix was installed “CrowdStrike is actively working with customers affected by the flaw found in a single content update for Windows hosts,” he said.

  • Phone interview with the CEO of American Express

    American Express had another strong quarterAXP) plans to increase its marketing budget from $800 million to $6 billion this year, CEO Steven Squeri said on the call.

    Asked whether the election had made him think more cautiously about the second half of the year, he said:

    “If we had been more cautious, we wouldn’t have raised our guidance or increased our marketing or anything like that. I think we’re just going to be consistent and I think that’s the key point here. The Fed is probably going to do what they’re going to do in September. I’m certainly not going to raise rates. They’re probably going to lower rates and they’ll probably lower them again by the end of the year. I think that’s going to help bolster consumer confidence. No one knows what’s going to happen with the November election, but I think we’ll wait and see what happens. The fact is, this company has been around for 174 years and with 30 presidents. We’ll get through whatever it takes.”

  • In other news…

    In news unrelated to President Trump’s speech at the Republican National Convention, Hulk Hogan Take your shirt off at an event A while ago, CloudflareNet) outage is wreaking havoc on life (and stock prices) this morning…

    Netflix reported its earnings last night. Yahoo Finance’s Alexandra Canal breaks it down. hereThe company’s shares were slightly lower in premarket trading amid concerns about its third-quarter subscriber guidance.

    On this point, Jefferies technology analyst Brent Till said:

    “I do not think so [guidance is a problem]Given the strong growth from password sharing over the past 12 months (+39M net adds), the slowdown in subscriber growth is not surprising. It’s worth noting that Q2’s 8M net adds were the highest Q2 quarter the company has reported outside of Q2 2020. Given its content slate (Squid Game S2, NFL Games) and greater seasonality in Q4 than Q3, subscriber growth is expected to accelerate to 7.7M net adds in Q4.

    Makes sense to me.

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