Global Tech Glitch Shakes Markets: Stocks Slide Amid Cyber Disruptions

U.S. stock index futures fell as traders exited megacap technology stocks following a global tech outage. The disruption affected airlines, financial services, and various businesses. Significant stock movements included Microsoft's decline and CrowdStrike's slump. Key market indices also dipped, reflecting investor uncertainty.

U.S. stock index futures dropped on Friday as traders moved away from expensive megacap technology stocks while evaluating the fallout from a global tech outage that impacted businesses across multiple sectors.

Major U.S. airlines initiated ground stops due to communications issues, and companies in the financial services sector reported system outages disrupting operations. Microsoft's stock fell by 2.7% in premarket trading after experiencing cloud disruptions.

CrowdStrike Holdings saw a 19% slump following the Australian government's disclosure linking some local outages to issues at the company. This disruption comes after Wall Street experienced two challenging sessions, during which investors reassessed second-quarter earnings and shifted focus from megacap tech stocks, previously the main driver of the 2024 equity rally.

(With inputs from agencies.)