Wall St ends volatile session lower in aftermath of global tech outage
Cybersecurity stocks rise after outage
Intuitive hits record high after quarterly results beat
Travelers Companies weighs on Dow
Indexes down: Dow 0.93%, S&P 0.71%, Nasdaq 0.81%
Adds market details after close of trading
By Stephen Culp
NEW YORK, July 19 (Reuters) -U.S. stocks extended their slump on Friday as lingering chaos related to a global technical outage caused by a software glitch added uncertainty to an already-anxious market.
The far-reaching tech outage disrupted operations across multiple industries including airlines, banking and healthcare after the glitch in cybersecurity firm Crowdstrike's CRWD.O software caused Microsoft's MSFT.O Windows operating system to crash.
While the flaw was identified and fixes deployed, technical issues continue to affect some services.
Crowdstrike shares slid 11.1%, while rival cybersecurity firms Palo Alto Networks PANW.O and SentinelOne S.N advanced 2.2% and 7.8%, respectively.
All three major U.S. stock indexes ended in negative territory, with the Dow Jones Industrial average suffering the worst of it.
On a weekly basis, both the Nasdaq and the S&P 500 logged their worst week since April, while the Dow, having reached a series of all-time closing highs earlier in the week, posted a Friday-to-Friday gain.
"This tech outage adds some uncertainty and puts pressure on the overall Nasdaq," said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut. "But it won’t have much of an overall impact. Some buying will be delayed. Not only is it a summer Friday but because of the outage (investors) are in wait-and-see mode."
"They're sitting on the sidelines," Pavlik added. "That's what happens to the stock market when volatility rules the day."
The CBOE Market volatility index .VIX, considered a gauge of investor anxiety, touched its highest level since late April.
The smallcap Russell 2000 .RUT - a beneficiary of a recent pivot away from megacap growth stocks - ended modestly lower.
Nvidia shares NVDA.O led a sell-off in chips. The Philadelphia SE Semiconductor index .SOX underperformed the broader market, falling 3.1%.
Elsewhere, Federal Reserve Bank of New York President John Williams reiterated the central bank's commitment to bringing inflation down to its 2% target.
Financial markets have priced in a 93.5% likelihood that the Fed will enter a rate-cutting phase at the conclusion of its September meeting, according to CME's FedWatch tool.
The Dow Jones Industrial Average .DJI fell 377.49 points, or 0.93%, to 40,287.53, the S&P 500 .SPX lost 39.59 points, or 0.71%, to 5,505 and the Nasdaq Composite .IXIC dropped 144.28 points, or 0.81%, to 17,726.94.
Among the 11 major sectors of the S&P 500, energy shares .SPNY fell the most, while healthcare .SPXBK and utilities .SPLRCU were the only gainers.
Second-quarter earnings season ended its first full week, with 70 of the companies in the S&P 500 having reported. Of those, 83% have beaten consensus, according to LSEG.
Analysts now see aggregate year-on-year S&P 500 earnings growth of 11.1%, an improvement over the 10.6% estimate as of July 1.
Next week, a swath of high-profile results is expected from Tesla TSLA.O, Alphabet GOOGL.O, IBM IBM.N, General Motors GM.N, Ford F.N and a host of other companies.
"It's early in earns season, but things have been impressive," said Ryan Detrick, chief market strategist at Carson Group in Omaha, Nebraska. "But the big boys are starting to report next week and what we want to hear is how strong the consumer is and what's the outlook for future economic growth."
Eli Lilly LLY.N advanced 1.0% after China approved its weight-loss drug tirzepatide, while Intuitive Surgical ISRG.O jumped 9.4% after a second-quarter results beat.
Travelers TRV.N tumbled 7.8% on lower-than-expected growth in net written premiums.
Netflix NFLX.O fell 1.5% in choppy trading after the streaming giant cautioned third-quarter subscriber additions would be lower than a year earlier.
Oilfield services provider SLB SLB.N rose 1.9% after strong second-quarter profit.
Declining issues outnumbered advancing ones on the NYSE by a 2.11-to-1 ratio; on Nasdaq, a 1.91-to-1 ratio favored decliners.
The S&P 500 posted 27 new 52-week highs and 4 new lows; the Nasdaq Composite recorded 50 new highs and 99 new lows.
Volume on U.S. exchanges was 10.54 billion shares, compared with the 11.72 billion average for the full session over the last 20 trading days.
RUT vs SPX YTD https://reut.rs/4dccgGR
Reporting by Stephen Culp in New York
Additional reporting by Lisa Pauline Mattackal and Ankika Biswas in Bengaluru
Editing by Devika Syamnath and Matthew Lewis
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Penafian: Entiti XM Group menyediakan perkhidmatan pelaksanaan sahaja dan akses ke Kemudahan Dagangan Atas Talian, yang membolehkan sesorang melihat dan/atau menggunakan kandungan yang ada di dalam atau melalui laman web, tidak bertujuan untuk mengubah atau memperluas, juga tidak mengubah atau mengembangkannya. Akses dan penggunaan tersebut tertakluk kepada: (i) Terma dan Syarat; (ii) Amaran Risiko; dan Penafian Penuh. Oleh itu, kandungan sedemikian disediakan tidak lebih dari sekadar maklumat umum. Terutamanya, perlu diketahui bahawa kandungan Kemudahan Dagangan Atas Talian bukan permintaan, atau tawaran untuk melakukan transaksi dalam pasaran kewangan. Berdagang dalam mana-mana pasaran kewangan melibatkan tahap risiko yang besar terhadap modal anda.
Semua bahan yang diterbitkan di Kemudahan Dagangan Atas Talian kami bertujuan hanya untuk tujuan pendidikan/maklumat dan tidak mengandungi – dan tidak boleh dianggap mengandungi nasihat kewangan, cukai pelaburan atau dagangan dan cadangan, atau rekod harga dagangan kami, atau tawaran, atau permintaan untuk suatu transaksi dalam sebarang instrumen kewangan atau promosi kewangan yang tidak diminta kepada anda.
Sebarang kandungan pihak ketiga serta kandungan yang disediakan oleh XM, seperti pendapat, berita, penyelidikan, analisis, harga, maklumat lain atau pautan ke laman web pihak ketiga yang terdapat dalam laman web ini disediakan berdasarkan "seadanya" sebagai ulasan pasaran umum dan bukanlah nasihat pelaburan. Sesuai dengan apa-apa kandungan yang ditafsir sebagai penyelidikan pelaburan, anda mestilah ambil perhatian dan menerima bahawa kandungan tersebut tidak bertujuan dan tidak sediakan berdasarkan keperluan undang-undang yang direka untuk mempromosikan penyelidikan pelaburan bebas dan oleh itu, ia dianggap sebagai komunikasi pemasaran di bawah peraturan dan undang-undang yang berkaitan. SIla pastikan bahawa anda telah membaca dan memahami Notifikasi mengenai Penyelidikan Pelaburan Bukan Bebas dan Amaran Risiko mengenai maklumat di atas yang boleh diakses di sini.