The stock market experienced a rollercoaster ride on Friday as CrowdStrike’s stock tumbled 9.6%, while Microsoft remained flat. The turbulence in the market was further exacerbated by a widespread outage that affected check-in procedures at airports around the world, leading to long lines of frustrated fliers.
Initially, the outage caused U.S. airline stocks to plummet, but they quickly recovered, with United Airlines even flipping to a gain of 0.1%. However, American Airlines Group and Delta Air Lines saw slight declines of 0.3% and 0.4%, respectively.
Corporate profit reports also played a significant role in moving stock prices, with Comerica dropping 12.7% despite delivering better-than-expected earnings. The bank received a preliminary notification that it would not continue as the issuer of the Direct Express debit card for federal benefit recipients.
American Express also saw a 4.1% drop in its stock after falling short of revenue forecasts, while Huntington Bancshares rose 3% after reporting better-than-expected profits.
The S&P 500 index is on track for its worst week since April, despite hitting an all-time high earlier in the week. The market saw pressure on Big Tech stocks, which have been the market’s biggest winners this year.
Overall, the market saw a washout on Thursday, pulling down most stocks across the board. The uncertainty in the market comes amid hopes for interest rate cuts by the Federal Reserve, which have buoyed the market and sent Treasury yields lower.
Stock markets abroad were mostly lower in Europe and Asia, with indexes falling 2% in Hong Kong and rising 0.2% in Shanghai. Chinese officials provided details of a blueprint aimed at making China a leader in technology and raising living standards.
Despite the volatility in the market, experts like Brian Jacobsen, chief economist at Annex Wealth Management, remain optimistic about the long-term opportunities that may arise from the current market conditions.
