U.S. stocks fell on Friday as concerns about a global IT outage eased, with Wall Street looking to recover from a selloff that saw the Dow Jones Industrial Average snap a winning streak and technology stocks continue to slide.
The Dow Jones Industrial Average (^DJI) fell about 0.9%, after the blue-chip index dropped more than 1%. The S&P 500 (^GSPC) fell 0.5%, while the technology-dominated Nasdaq Composite (^IXIC) fell 0.5%.
Stocks are facing weekly losses after a handful of volatile sessions that saw tech shares fall, with artificial intelligence-focused chip stocks bearing the brunt. Investors are moving away from the heavyweight tech companies that fueled the recent rally toward smaller-cap companies, which some see as benefiting more from interest rate cuts.
In the early hours of the morning, investors were assessing the potential impact of an “unprecedented” failure of computer systems around the world that has grounded flights and hit banks, telecoms, media companies and more. But concerns were eased after CrowdStrike (CRWD) said there was a fix for the bug, a botched update that affected systems that relied on Microsoft (MSFT).
Shares of CrowdStrike fell about 20% as the outage spread, but pared losses to about 12% at the open. Shares of Microsoft, which has been working to resolve issues with its Azure cloud services, fell slightly but also recovered.
Meanwhile, Republican presidential candidate Donald Trump used his nomination speech on Thursday to say he would “end the electric vehicle mandate on day one.” His comment comes as the market wakes up to the “Trump deal” — the consequences his policies would have on assets if the former president takes over the White House.
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