US Stocks Close Lower on Friday
US stocks closed lower on Friday, capping off the worst week for the S&P 500 since mid-April. The decline on Friday extended the trend of smaller-cap stocks outperforming large-cap peers, which was initially sparked by a cooler-than-expected June inflation report last week.
Global IT Outage Impact
A global IT outage caused by a Crowdstrike update exacerbated Friday’s stock market decline. The IT outage was caused by a bug contained in a CrowdStrike update, ultimately leading to canceled and delayed flights, bank outages, and more widespread disruptions. Crowdstrike said it identified the issue and was deploying a fix.
Upcoming Market Focus
Next week, investors will focus on upcoming earnings from Tesla and Alphabet, as well as economic data releases. Investors got their first glimpse of earnings this week, with major banks like Goldman Sachs reporting solid results on Monday. Netflix reported better-than-expected revenue, profits, and subscriber growth in its second-quarter earnings report on Thursday.
According to data from Fundstrat, 13% of S&P 500 companies have reported second-quarter earnings results. Of those companies, 81% are beating profit estimates by a median of 4%, while 61% are beating revenue estimates by a median of 3%.
Key Market Indicators
In the week ahead, investors will keep a close eye on mega-cap tech earnings results from Tesla and Alphabet, the June Core PCE inflation data, and the second-quarter GDP print. Here’s where US indexes stood at the 4:00 p.m. closing bell on Friday:
Commodities, Bonds, and Crypto:
West Texas Intermediate crude oil was down 3.15% to $78.74 a barrel. Brent crude, the international benchmark, declined 2.75% to $82.77 a barrel. Gold fell 2.23% to $2,401.60 per ounce. The 10-year Treasury yield rose three basis points to 4.24%. Bitcoin increased 5.26% to $67,344.
Source : markets.businessinsider.com