Stocks tumble as the S&P 500 caps off its worst week in 3 months

By Investor Empires On Jul 20, 2024

Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York, U.S., March 17, 2020.Lucas Jackson/Reuters

U.S. stocks closed lower on Friday, marking the S&P 500’s worst week since mid-April.
A global IT outage caused by a Crowdstrike update exacerbated Friday’s stock market decline.
Next week, investors will focus on upcoming earnings from Tesla and Alphabet, as well as economic data releases.

U.S. stocks closed lower on Friday, capping off the S&P 500’s worst week since mid-April.

Friday’s decline extended the trend. Smaller cap stocks outperform their large cap counterparts. Which was initially sparked by the June inflation report, which came in colder than expected last week.

Stock prices fell on Friday. Exacerbated by global IT outage which infected computers running Microsoft’s Windows operating system.

The IT outage was caused by a bug in a CrowdStrike update, which ultimately led to flight cancellations and delays, banking outages, and more widespread disruption.

Crowdstrike said it has identified the issue and released a fix. Shares of the cybersecurity provider fell about 10%.

Investors got their first glimpse of earnings this week, with major banks like Goldman Sachs reporting strong results on Monday.

Netflix Reported better-than-expected revenue, profit and subscriber growth In its second-quarter earnings report on Thursday, the stock fell about 2% on somewhat weak third-quarter guidance.

According to data from Fundstrat, 13% of S&P 500 companies reported second-quarter earnings. Of those, 81% beat earnings estimates by an average of 4%, while 61% beat revenue estimates by an average of 3%.

Next week, investors will be closely watching tech giants Tesla and Alphabet’s earnings, June core personal consumption price inflation data, and second-quarter GDP data.

Here’s where U.S. stock indexes stood at the close at 4 p.m. Friday:

Here’s what else happened today:

In commodities, bonds and cryptocurrencies:

West Texas Intermediate Crude oil fell 3.15% to $78.74 per barrel. Brent crudeThe price of a barrel of Brent crude oil fell by 2.75% to $82.77.
gold It fell 2.23% to $2,401.60 an ounce.
The yield on the 10-year US Treasury note rose three basis points to 4.24%.
Bitcoin It rose by 5.26% to $67,344.

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