The S&P 500 index fell 2% last week, led by the technology sector as an issue with a software update from CrowdStrike Holdings drove system outages globally.
This is the S&P 500’s first weekly drop since the last week of June. The index is still in positive territory, up 0.8% in July and 15% so far in 2024.
CrowdStrike’s software update affected computer systems using Microsoft Windows across the world, disrupting flights, payments, hospital systems, and more. The widespread extent of the effects underscored the interconnected nature of global technology systems and raised many questions and concerns for the technology sector and beyond.
The technology sector had the largest percentage drop of the week, sliding 5.1%, followed by a 2.9% decline in communication services and a 2.7% drop in consumer discretionary. Other sectors in the red included utilities, materials, and health care.
On the upside, the energy sector climbed 2%, followed by a 1.3% rise in real estate and a 1.2% increase in financials. Consumer staples and industrials also rose.
This week’s earnings schedule features Verizon Communications, Alphabet, Tesla, Visa, Coca-Cola, United Parcel Service, and more. Economic data will include June new and existing home sales, Q2 gross domestic product and the June personal consumption expenditures index, a closely watched inflation measure.
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