Market Turbulence: CrowdStrike Outage and Biden’s Withdrawal Shake the Scene
22 July 2024
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A significant outage attributed to a CrowdStrike update led to widespread disruptions and an 11.1% drop in its stock price. In a surprising political move, President Joe Biden announced his withdrawal from the 2024 presidential race, endorsing Vice President Kamala Harris as the Democratic Party’s nominee.
Key Points:
- Stock Decline: CrowdStrike’s stock dropped by around 12%.
- Political Shift: Biden withdraws from the 2024 race, endorsing Harris.
- Price Drop: Natural gas futures fell by over 10%.
CrowdStrike Faces Major Outage and Stock Decline
A widespread outage on Friday caused major disruptions across various sectors, grounding flights, halting hotel check-ins, and interrupting freight deliveries, forcing many businesses to revert to manual operations. The incident, allegedly triggered by a CrowdStrike update, resulted in an approximately 12% drop in the company’s stock price. The outage also impacted Microsoft’s Windows, which saw a 0.7% decline.
In a bold move, Cathie Wood’s ARK ETFs purchased a significant amount of CrowdStrike stock, valued at approximately $13.24 million, through ARKW and ARKF ETFs.
Biden Steps Aside, Endorses Harris
In a significant political development, President Joe Biden announced today his decision to withdraw from the 2024 presidential race, endorsing Vice President Kamala Harris as the Democratic Party’s nominee. Harris is expected to be confirmed as the nominee at the Democratic National Convention from August 19-22 in Chicago.
The key market-moving news from this event could hinge on Harris’s choice of running mate. There is also speculation around the use of the 25th Amendment, which could theoretically see Biden removed from office early, though no officials have indicated such intentions.
US Natural Gas Futures Plummet
US natural gas futures dropped over 10% to below $2.1/MMBtu last week, driven by milder weather and reduced feedgas to LNG export plants. This price decline occurred despite expectations of a return to hot weather in late July and early August, which should increase demand for gas-fired electricity to power air conditioners. Meteorologists project near-normal temperatures across the Lower 48 states through July 25, with a hotter-than-normal trend anticipated through at least August 3.
These three major developments — the CrowdStrike outage, Biden’s withdrawal, and the plunge in natural gas futures — highlight the volatility and interconnected nature of market forces, showcasing the rapid shifts that can occur across different sectors and regions.
