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Market Recap
WEEK OF JUL. 15 THROUGH JUL. 19, 2024
The S&P 500 index fell 2% last week, led by the technology sector as an issue with a software update from CrowdStrike Holdings (CRWD) drove system outages globally. The S&P 500 ended Friday's session at 5,505.00 after reaching a record intraday high on Wednesday at 5,669.67 and a new closing high at 5,667.20.
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 (CRWD) software update affected computer systems using Microsoft (MSFT) 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. CrowdStrike (CRWD) led the technology sector's slide, falling 18% on the week.
Shares of Facebook parent Meta Platforms (META) and Google parent Alphabet (GOOGL) weighed on communication services, falling 4.4% and 4%, respectively.
In the consumer discretionary sector, shares of Domino's Pizza (DPZ) shed 18% as the pizza chain operator suspended guidance of global net stores due to challenges faced by its master franchisee.
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.
The energy sector's top percentage gainer of the week was Schlumberger (SLB) . The company's shares rose 7% amid stronger-than-expected Q2 results, aided by double-digit revenue growth in key international markets.
This week's earnings schedule features Verizon Communications (VZ), Alphabet (GOOGL), Tesla (TSLA), Visa (V), Coca-Cola (KO), United Parcel Service (UPS), International Business Machines (IBM), AT&T (T), Boston Scientific (BSX), Union Pacific (UNP), Bristol-Myers Squibb (BMY), Colgate-Palmolive (CL) and 3M (MMM).
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.
