Adrian Johnson
TLDR:
- Stocks were lower across the board as Wall Street sees rotation out of tech winners.
- CrowdStrike’s IT outage caused a slide in shares, benefiting cybersecurity rival Palo Alto.
In a recent article on CNBC, it was reported that U.S. stocks were facing a decline as investors shifted away from high-flying tech stocks. The tech-heavy Nasdaq Composite and S & P 500 were on track for a third consecutive losing day, while the Dow Jones Industrial Average was also heading towards a down day. Additionally, Palo Alto Networks saw a rise in its shares after cybersecurity rival CrowdStrike experienced an IT outage that led to an 8% drop in its stock. Despite not being a cyber incident, CrowdStrike could potentially face reputational risks as a result of the outage.
Meanwhile, Eli Lilly saw a rebound in its stock by nearly 3% following an approval from Chinese regulators for its obesity drug. This development comes after concerns about competition in the weight loss market from Roche’s early-stage trial results for an obesity pill. Jim Cramer, a prominent figure in the investment community, noted that the rebound in Eli Lilly’s stock could be significant as investors reconsider the competitive landscape in the market.
Overall, the article highlights the impact of CrowdStrike’s stumble on the cybersecurity sector, particularly on Palo Alto Networks. It also sheds light on the competitive dynamics in the pharmaceutical industry and how regulatory approvals can influence stock performance.
