Current:Home > MarketsU.S. stock trading unaffected by IT outage, but Crowdstrike shares tumble-LoTradeCoin
U.S. stock trading unaffected by IT outage, but Crowdstrike shares tumble
View
Date:2024-12-24 03:16:38
U.S. markets opened and stocks traded Friday without a hitch despite an outage that roiled operations at companies across multiple industries, from airlines to healthcare to government agencies worldwide.
The outage stemmed from an update by cybersecurity firm Crowdstrike to Microsoft Windows hosts, Crowdstrike said on its website. “A fix has been deployed,” it said, noting “this is not a security incident or cyberattack.” Microsoft also said all its systems were “up and running.”
By the time New York trading opened, most companies were becoming operational again but still catching up. Crowdstrike shares were down almost 9% at $312.84 at 12:18 p.m. ET, but stocks of most other affected companies were only slightly lower because widespread economic impact is expected to be small. Microsoft shares were down less than 1% at $438.06.
“The global IT outages affecting Windows software are causing huge temporary disruption to certain sectors including travel and healthcare, but while things are still very uncertain, we do not anticipate a major macroeconomic or financial market impact at this stage,” said Jennifer McKeown, chief global economist at research firm Capital Economics, in a note.
Since the outage wasn’t due to “a cyber attack and has not affected all software by any stretch, the implications should be significantly smaller,” she said.
Crowdstrike shares tumble on outage
Crowdstrike shares slid after analysts predicted the company would have to pay to clean up the outage it created.
“This could be an expense burden for Crowdstrike given it has to invest to clean up the issue and potentially dispense credits which could impact margin,” Jefferies analysts wrote in a note.
“Furthermore, this will lead to reputational damage, particularly for mission critical infrastructure and government customers,” it said.
However, the investment bank continues to rate the shares a buy.
Which companies are still recovering?
A sample of ongoing disruptions as of 11:30 a.m. ET include:
- Delta Airlines’ website remains unavailable.
- FedEx says on its website, “potential delays are possible for package deliveries with a commitment of July 19.”
- United Airlines’ website said “resuming some flights but expect schedule disruptions to continue throughout Friday. We have issued a waiver to make it easier for customers to change their travel plans via united.com or the United app.”
- Starbucks order ahead online remains down.
S&P 500, Dow, Nasdaq fall but unrelated to outage
All three major stock indices – the S&P 500, Dow Jones Industrial Average and Nasdaq – were all lower in late morning trade, continuing their recent weakness unrelated to the massive IT outage caused by Crowdstrike.
Investors remained focused on earnings, which have come in mixed, analysts said. American Express shares fell after the credit card company missed earnings forecasts while Netflix topped forecasts when it reported earnings last night.
American Express shares were down 3.5% to $240.34 at 12:39 p.m. ET, while Netflix gave up early gains to slip less than 1% to $637.83.
S&P 500 shed 32 points to 5,512.59 at 12:41 p.m. ET. The Dow was down 340 points to 40,324.83 and Nasdaq was down 120 points to 17,750.85. S&P 500 is headed for its worst week in three months.
Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at [email protected] and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday.
veryGood! (68)
Related
- UFC 309: Jon Jones vs. Stipe Miocic fight card, odds, how to watch, date
- Women working in Antarctica say they were left to fend for themselves against sexual harassers
- At least 7 shot in Boston, police say
- Arizona State self-imposes bowl ban this season for alleged recruiting violations
- Keke Palmer Says Ryan Murphy “Ripped” Into Her Over Scream Queens Schedule
- Hawaii authorities evacuate area of Lahaina due to brush fire near site of deadly blaze
- Illegal logging thrives in Mexico City’s forest-covered boroughs, as locals strive to plant trees
- Tyga Responds After Blac Chyna Files Custody Case for Son King Cairo
- 13 escaped monkeys still on the loose in South Carolina after 30 were recaptured
- The dream marches on: Looking back on MLK's historic 1963 speech
Ranking
- Horoscopes Today, November 12, 2024
- Ozempic seems to curb cravings for alcohol. Here's what scientists think is going on
- Simone Biles wins a record 8th US Gymnastics title a full decade after her first
- Taylor Swift Shows Support for BFF Selena Gomez in the Sweetest Way After Single Soon Release
- AIT Community Introduce
- Love, war and loss: How one soldier in Ukraine hopes to be made whole again
- Bob Barker, longtime The Price Is Right host, dies at 99
- Pete the peacock, adored by Las Vegas neighborhood, fatally shot by bow and arrow
Recommendation
What that 'Disclaimer' twist says about the misogyny in all of us
Full transcript of Face the Nation, August 27, 2023
Video shows rest of old I-74 bridge over Mississippi River removed by explosives
Louisiana refinery fire mostly contained but residents worry about air quality
Sister Wives’ Kody Brown Explains His Stance on His Daughter Gwendlyn Brown’s Sexuality
Tropical Storm Idalia: Cars may stop working mid-evacuation due to fuel contamination
Riders in various states of undress cruise Philadelphia streets in 14th naked bike ride
Massive emergency alert test will sound alarms on US cellphones, TVs and radios in October