Wall Street’s losing streak extends as global tech chaos sinks cybersecurity stocks

In this context, the Dow Jones Industrial Average loses 304.19 points, or a 0.8%, to 40,360.83 units; the S&P 500 falls 25.72 points, or a 0.5%, to 5,518.87 units; and the Nasdaq Composite gives up 102.13 points, or a 0.6%, to 17,769.09 units.

In the last two sessions, the Nasdaq fell 3.5% and the S&P 500 a 2.1%, which puts them on a path of weekly losses.

Wall Street falls after cyber blackout

The cybersecurity company CrowdStrike plummets more than 30% after an update to one of its products appeared to have triggered an outage affecting customers using the Microsoft Windows operating systemdisrupting businesses across all sectors.

Thus, the Major US Airlines They ordered their planes to be grounded, citing communication problems, and the Euronext stock exchange and the data and news platform Workspace of the London Stock Exchange Group They also suffered problems. Later, LSEG announced that its data and services were back up and running.

As a result, the actions of Microsoft fell 2.6% and had four consecutive days of losses, driven by the fall in technology stocks.

“Any hint of bad news, since (tech stocks) are so well valued, is going to hurt those stocks. Both CrowdStrike and Microsoft are excellent companies and worth holding for the long term,” he said. Phil BlancatoCEO of Ladenburg Thalmann Asset Management.

The disturbance occurs after Two grueling sessions for Wall Streetas investors assessed second-quarter earnings and a move away from the mega-cap firms that have primarily driven the equity rally in 2024.

Mega-cap companies were trading mixed: Nvidia and Amazon.com lost 1.7% and 0.6% respectively, while Manzana and Alphabet earn up to 0.3%.

Chip stocks were also mixed. Shares of Taiwan Semiconductor Manufacturinglisted in the United States, fell more than 5%, while Arm Holdings rises almost 6%.