Global Markets Shaken by Cyber Outage, Dollar Climbs

Global stock indexes fell on Friday due to a significant cyber outage that disrupted operations across multiple industries. The S&P 500 and Nasdaq saw their largest weekly declines since April. The dollar and Treasury yields rose as investors braced for upcoming second-quarter earnings results.

Global stock indexes declined on Friday as a major cyber outage shook investor confidence by disrupting operations in several industries. Concurrently, the dollar appreciated alongside rising Treasury yields.

The S&P 500 and Nasdaq experienced their steepest weekly percentage losses since April. The outage, which impacted services from airlines to banks to healthcare, originated from an update to CrowdStrike's product affecting users of Microsoft's Windows Operating System, causing widespread disruption. Microsoft shares fell 0.7%, while CrowdStrike plummeted 11.1%.

The Dow Jones Industrial Average dropped 377.49 points (0.93%) to 40,287.53. The S&P 500 lost 39.59 points (0.71%) to 5,505.00, and the Nasdaq Composite fell 144.28 points (0.81%) to 17,726.94. MSCI's global stock gauge decreased by 6.58 points (0.80%) to 810.87, and the STOXX 600 index declined 0.77%.

Looking ahead, investors await critical second-quarter earnings reports from major companies, with key technology sector results expected from the likes of Tesla and Alphabet next week, followed by Microsoft and Apple.

The dollar index advanced, bolstered by recent U.S. economic data and concerns over the outage. It rose by 0.21% to 104.36, while the euro fell to $1.0881, and the yen weakened to 157.46 per dollar. U.S. Treasury yields also increased, with the 10-year note rising to 4.243%.

Oil prices dropped with U.S. crude settling at $80.13 per barrel and Brent at $82.63. Amid the turmoil, bitcoin saw a rise of 5.11%, reaching $67,083.35.

(With inputs from agencies.)