Wall Street Turns Red Amid Tech Glitch, Bitcoin Climbs
Wall Street is ending the week on a sour note, with all major indices trading in negative territory at midday in New York. The market’s downturn is fueled by lingering weakness after a temporary tech outage caused by a cloud software update from CrowdStrike Holdings Inc. (CRWD) led to widespread disruptions across several sectors worldwide. The outage, which impacted businesses and individuals alike, has injected a dose of uncertainty into the market, dampening investor sentiment.
Key Takeaways:
- The S&P 500 index is down 0.6%, extending its weekly decline to 1.8% and marking its worst week since April.
- The tech-heavy Nasdaq 100 is underperforming the broader market, down 1%, reflecting general weakness in the technology sector. Its weekly loss stands at 3.9%, also the worst in three months.
- The Dow Jones is also impacted by Friday’s weak sentiment, down 0.9%, but it still maintains marginally positive territory for the week.
- The small caps of the Russell 2000 index are down only 0.4%, poised to secure another week of relatively better performance compared to large caps.
- Treasury yields are rising by a few basis points across the curve, with long-dated bonds, as tracked by the iShares 20+ Year Treasury Bond ETF (TLT), breaking a two-week streak of gains.
- The dollar ticked higher by 0.1%, while gold fell by 0.4%.
- Among commodities, oil is down 1.8%, with WTI light crude falling to $80 a barrel, its lowest level in a month.
- In cryptocurrencies, Bitcoin (BTC) bulls are charging back, with the largest cryptocurrency rallying 3.9%, returning to $66,000, its highest level in a month.
Friday’s Performance in Major US Averages & ETFs
| Major Indices & ETFs | Price | 1-day % |
|---|---|---|
| Russell 2000 | 2,280.98 | -0.4% |
| S&P 500 | 5,509.25 | -0.6% |
| Dow Jones | 40,283.08 | -0.9% |
| Nasdaq 100 | 19,514.70 | -1.0% |
The data is updated at 12:50 p.m. ET.
According to Benzinga Pro data:
- The SPDR S&P 500 ETF Trust (SPY) was 0.6% lower to $549.53.
- The SPDR Dow Jones Industrial Average (DIA) fell by 1% to $402.82.
- The tech-heavy Invesco QQQ Trust (QQQ) fell 0.8% to $475.87.
- Sector-wise, the Health Care Select Sector SPDR Fund (XLV) outperformed, up by 0.4%, while the Technology Select Sector SPDR Fund (XLK) lagged, down 1.3%.
Friday’s Stock Movers
- Shares of Crowdstrike Holdings Inc. (CRWD) tumbled 11%, slightly trimming heavier pre-market losses. This decline reflects investor concerns over the outage’s impact on the company’s reputation and future prospects. Industry peers like SentinelOne Inc. (S) and Palo Alto Networks Inc. (PANW), rose 8% and 2.5% respectively, potentially benefiting from the increased awareness of cybersecurity vulnerabilities.
- Hawaiian Electric Industries Inc. (HE) rallied over 30% on reports suggesting the company reached a settlement plan over last year’s Maui wildfires. This news brought optimism to investors, who were previously concerned about the company’s potential liability related to the devastating fires.
- Comerica Inc. (CMA) plummeted 11% on weaker-than-expected outlook on net interest income, despite reporting stronger-than-expected results last quarter. The company also announced it will no longer serve as the financial agent for the U.S. Treasury Direct Express Prepaid Debit Card program, which could lead to a loss of revenue and impact its future growth prospects.
- Other stocks reacting to company earnings were Netflix Inc. (NFLX) down 1.1%, Intuitive Surgical Inc. (ISRG) up 8%, PPG Industries Inc. (PPG) down 3.7%, Western Alliance Bancorp. (WAL, up 8%, American Express Co. (AXP, down 3.4%, Schlumberger N.V. (SLB) up 3.3%, The Travelers Company (TRV) down over 7%, Halliburton Co. (HAL, Huntington Bancshares Inc. (HBAN, up 2.3%.
- Crypto-linked stocks like Microstrategy Inc. (MSTR), Coinbase Global Inc. (COIN), and Riot Platforms Inc (RIOT) rose 11.8%, 9.5% and 9.4%, respectively, as Bitcoin rallied.
While the CrowdStrike outage has cast a shadow over the market, Bitcoin’s recent surge has provided some respite. This divergence illustrates the potential for independent movements within different asset classes, suggesting that investors are navigating a complex and dynamic market landscape.
Read Now:
- How the CrowdStrike Outage Impacted Businesses
- Is Bitcoin’s Rally a Sign of Renewed Confidence?
- What to Expect From Wall Street Next Week
Photo via Shutterstock.
