Stock Market Today: Stocks Tumble After Spectacular Global Internet Crash
Market participants rushed out of risk assets to end a wild week of trading.


The rotation out of tech stocks intensified Friday after a botched software update from cybersecurity provider CrowdStrike Holdings (CRWD) caused Microsoft (MSFT) Windows computer systems to crash globally. Disappointing earnings reports from several blue chips also weighed on equities.
Markets finished a wild week decisively in the red after the largest internet outage in history caused chaos at financial institutions, hospitals, airlines and numerous other industries. Friday's massive IT failure added fuel to the selloff in tech stocks – particularly the Magnificent 7 stocks that have contributed the majority of the bull market's returns.
The move out of pricey tech stocks saw the tech sector of the S&P 500 lose 1.5%. Consumer discretionary stocks, materials and energy sector names also led the market's decliners.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"It's been a volatile, mostly down week with stocks rotating from tech to small caps, then surprisingly back the other way," writes the markets team at Argus Research. "The massive, global IT glitch was not a welcome ending to a summer Friday. Wall Street is all in red and trying to shake off the week and get prepped for next week."
By the closing bell, the tech-heavy Nasdaq Composite declined 0.8% to 17,726, while the broader S&P 500 fell 0.7% to 5,505. Disappointing quarterly earnings from two blue-chip components helped the Dow Jones Industrial Average drop 377 points, or 0.9%, to 40,287.
Travelers, American Express slide
Travelers (TRV), which ranks low among analysts' ratings of all 30 Dow Jones stocks, lost 7.8% after quarterly revenue missed Wall Street's forecast. Compounding the damage, the insurer said catastrophe losses rose almost 2% to $1.51 billion, citing "severe wind and hail storms" across the eastern and central regions of the U.S.
The report prompted CFRA Research to cut its recommendation on TRV to Hold from Buy, citing claims from Friday's IT outage, among other factors.
"While these results, including an 11% rise in earned premiums and improved underwriting results, are positive, we attribute TRV's weakness today to industry-wide concerns over claims set to emerge from the IT outage, as well as TRV's disappointing Q2 production trends," analyst Cathy Seifert wrote in a note to clients. "We believe these rates of growth lag many peers and will lead to an erosion in underwriting profitability, removing a catalyst from the shares."
American Express (AXP, -2.7%), which is one of Warren Buffett's top stocks, likewise took a hit after reporting quarterly revenue that came up short of Street estimates. AXP posted earnings of $4.15 per share, which easily topped analysts' forecast for $3.24 a share.
Although revenue from card fees topped $2 billion for the first time in the most recent quarter, total revenue net of interest expense came only to $16.3 billion. Analysts expected revenue to hit $16.6 billion in the period.
"We are maintaining our Buy rating on American Express following second-quarter earnings, which were helped by continued strength in billed business," wrote Argus Research analyst Stephen Biggar. "Rising stock market and home equity values, along with greater interest income from bond portfolios, remain tailwinds for consumer spending for this billed-business cohort."
Cybersecurity stocks are still a buy
CrowdStrike Holdings (CRWD) stock shed 11.1% after sparking a spectacular global internet outage, but analysts say the knee-jerk trading is almost certainly overdone. True, crashing the net is bad, but at least the company didn't suffer an actual security failure.
"Our experts tell us that CrowdStrike is widely perceived as a premier cybersecurity provider, admired for its leadership in innovation as well as its track record," said Jordan Berger, analyst at global research firm Third Bridge. "Despite any associated impact to CrowdStrike's brand, the most significant aspect of today's CrowdStrike outage may be the fact that the outage was in fact not tied to any security incident or breach, and as such the company’s security track record remains untarnished for now."
The analyst added that the degree to which CRWD's face-plant helps competitors such as Palo Alto Networks (PANW, +2.2%) and SentinelOne (S, +7.8%) is unclear, "especially considering the amount of effort required to replace a large security provider."
The bottom line is that spending on global cybersecurity is rising fast – and that makes the best cybersecurity stocks worth a closer look.
Related content
- Analysts' Top S&P 500 Stocks to Buy Now
- Why Amazon Stock Is the Biggest Bargain After Amazon Prime Day
- How to Find the Best Oil Stocks to Buy
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Dan Burrows is Kiplinger's senior investing writer, having joined the publication full time in 2016.
A long-time financial journalist, Dan is a veteran of MarketWatch, CBS MoneyWatch, SmartMoney, InvestorPlace, DailyFinance and other tier 1 national publications. He has written for The Wall Street Journal, Bloomberg and Consumer Reports and his stories have appeared in the New York Daily News, the San Jose Mercury News and Investor's Business Daily, among many other outlets. As a senior writer at AOL's DailyFinance, Dan reported market news from the floor of the New York Stock Exchange.
Once upon a time – before his days as a financial reporter and assistant financial editor at legendary fashion trade paper Women's Wear Daily – Dan worked for Spy magazine, scribbled away at Time Inc. and contributed to Maxim magazine back when lad mags were a thing. He's also written for Esquire magazine's Dubious Achievements Awards.
In his current role at Kiplinger, Dan writes about markets and macroeconomics.
Dan holds a bachelor's degree from Oberlin College and a master's degree from Columbia University.
Disclosure: Dan does not trade individual stocks or securities. He is eternally long the U.S equity market, primarily through tax-advantaged accounts.
-
The Most Popular Apps for Retirement Planning in 2025
A J.D. Power survey ranks retirement planning apps based on customer service and satisfaction. Does your financial app make the cut?
-
Don't Disinherit Your Grandchildren: The Hidden Risks of Retirement Account Beneficiary Forms
Standard retirement account beneficiary forms may not be flexible enough to ensure your money passes to family members according to your wishes. Naming a trust as the contingent beneficiary can help avoid these issues. Here's how.
-
Don't Disinherit Your Grandchildren: The Hidden Risks of Retirement Account Beneficiary Forms
Standard retirement account beneficiary forms may not be flexible enough to ensure your money passes to family members according to your wishes. Naming a trust as the contingent beneficiary can help avoid these issues. Here's how.
-
This Is How Life Insurance Can Fund Your Dreams Now
Beyond a death benefit, life insurance can provide significant financial value and flexibility through 'living benefits' while you are still alive, helping with expenses like education, business ventures or retirement.
-
Potential Trouble for Retirees: A Wealth Adviser's Guide to the OBBB's Impact on Retirement
While some provisions might help, others could push you into a higher tax bracket and raise your costs. Be strategic about Roth conversions, charitable donations, estate tax plans and health care expenditures.
-
One Small Step for Your Money, One Giant Leap for Retirement
Saving enough for retirement can sound as daunting as walking on the moon. But what would your future look like if you took one small step toward it this year?
-
This Is What You Really Need to Know About Medicare, From a Financial Expert
Health care costs are a significant retirement expense, and Medicare offers essential but complex coverage that requires careful planning. Here's how to navigate Medicare's various parts, enrollment periods and income-based costs.
-
I'm a Financial Planner: Could Partial Retirement Be the Right Move for You?
Many Americans close to retirement are questioning whether they should take the full leap into retirement or continue to work part-time.
-
From Mortgages to Taxes to Estates: How to Prepare for Falling Interest Rates
As speculation grows that the Federal Reserve will soon start lowering interest rates, now is a good time to review your financial plans for housing, estate, taxes, investing and retirement to make the most of potential changes.
-
This Is How Lottery Winners Build Lasting Legacies, From a Financial Professional
Winning a massive lottery jackpot, like the recent $1.4 billion Powerball, requires seeking immediate legal and financial counsel, protecting your identity and winnings and planning your legacy.