Stocks Drop as Businesses Are Affected by Tech Outages – Europe Market Wrap

Friday saw a decline in global equities as global computer system disruptions affected trading, travel, and support services, potentially aggravating a decline in technology stocks.

Crowdstrike, a cybersecurity company, saw a 21% decline in premarket trading in the US after disclosing that their software was crashing computers. Later on, the CEO claimed that the problem was being resolved. Microsoft’s stock fell 2% even after the company announced that the global disruption to flights and banks was caused by a cloud services failure.

However, contracts on the Nasdaq 100 and S&P 500 indices pared previous losses and traded flat for the day. In Europe, the Stoxx 600 index fell 0.6% for the fifth consecutive day. Shares in Air France, Ryanair, and other airlines plummeted sharply as aircraft were grounded or delayed. LSE Group, which runs the London Stock Exchange, recouped some of its share-price losses after announcing technical concerns that were preventing news from being disseminated.

The recent shifts into smaller, lower-valued sectors were prompted by signs that the Fed will cut interest rates in September – a view reinforced by Thursday’s data showing the largest increase in jobless claims since early May – as well as the possibility of increased protectionism under a potential Donald Trump presidency.