On Friday, the world was rocked by a software update from IT company CrowdStrike, halting the operation of many Windows computers and business processes. Shares of the accused company fell 11 percent, while the NASDAQ and S&P indexes fell 0.9 percent and 0.7 percent, respectively.
Overall, investors rotated positions from expensive large-cap tech (NASDAQ -3.7%) to smaller companies (Russell 2000 +1.7%) and bank stocks (MSCI USA Financials +1.2%) last week. A certain retreat could be expected, since only the shares of the "big seven" accounted for about 60 percent this year. growth in the overall S&P 500 index. On Tuesday, Tesla and Alphabet will announce the financial results of the second quarter and test the risk appetite of investors.
Joe Biden withdrew from the presidential race. Yesterday, the current president announced his decision on the social network X (formerly Twitter) and announced his support for the candidacy of Vice President Kamala Harris. Harris has also been supported by other prominent Democrats, and it is also important to note that since Harris was part of the Biden campaign, she will take over the campaign money and have the opportunity to take over the baton of the election relatively effectively.
China has cut its short-term interest rate. After a disappointing plenary meeting last week, the new week started with a surprise interest rate cut. Still, the cuts are relatively limited and have not boosted investor confidence in the struggling economy. The Shanghai CSI 300 index fell over 1.2 percent, while the Hang Seng index rose 0.8 percent.
