U.S. stocks fell on Friday as concerns over a global IT outage eased, with Wall Street searching for a recovery from a sell-off that saw the Dow Jones Industrial Average end gains and tech stocks continue to tumble.
The Dow Jones Industrial Average (^DJI) fell about 1% after the blue-chip index fell more than 1%, the S&P 500 Average (^GSPC) lost 0.6% and the tech-heavy Nasdaq Composite Index (^IXIC) dropped 0.5%.
Stocks are facing a weekly slide after a volatile few trading days saw technology stocks sell off, hurting AI-focused semiconductor stocks, as investors shift money away from the big tech stocks that have driven the recent rally and toward smaller stocks that are seen as better positioned to benefit from lower interest rates.
Investors were assessing the potential impact of an “unprecedented” computer system outage that grounded flights around the world and hit banks, telecommunications companies, media companies and others in the early hours of the morning, but concerns were eased after CrowdStrike (CRWD) said it had fixed the glitch, a botched update that affected Microsoft (MSFT)-based systems.
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 nominee Donald Trump said in his nomination speech on Thursday that he would “end the electric vehicle mandate on day one.” His comments come as markets are starting to wake up to the “Trump trade” — the impact his policies would have on assets if the former president were in the White House.
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