A massive IT outage, triggered by CrowdStrike, has brought widespread disruptions across various industries globally, affecting airlines, banks, and numerous other businesses. However, in a surprising turn of events, the financial markets have shown remarkable resilience, with most sectors operating business as usual.
The New York Stock Exchange (NYSE) and Nasdaq have confirmed that their operations are unaffected by the IT glitch, ensuring continuity in trading activities. While one index provider did experience some complications, the overall impact on the financial markets has been minimal
The New York Stock Exchange (NYSE) has assured investors of a seamless start to the trading day, despite the widespread technical issues caused by a CrowdStrike update. “We’re gearing up for a regular opening this morning, with all systems go,” an NYSE representative confirmed.
Meanwhile, the Nasdaq, a hub for tech giants, has also navigated the challenges posed by the CrowdStrike glitch. “Our European markets are running smoothly, and we’re expecting a normal opening in the US markets,” a Nasdaq spokesperson said, adding that pre-market activities in the US are also proceeding as usual.
In addition to the NYSE and Nasdaq’s smooth operations, another key player in the financial markets faced technical difficulties. The Russell US Indexes, a benchmark for small-cap stocks, experienced calculation issues after the market opened. Fortunately, the problem was resolved later that morning.
FTSE Russell, the index provider, attributed the disruption to a third-party technical issue, which affected their real-time platforms and prevented clients from accessing data. Their team swiftly investigated and resolved the matter, restoring service by 10:54 a.m. ET after a four-hour outage.
Meanwhile, CrowdStrike, the cybersecurity firm at the center of the chaos, saw its shares plummet over 10% in afternoon trading. According to Gregory Falco, a cybersecurity expert at Cornell University, the scale and far-reaching consequences of the failure made it particularly noteworthy.
Despite the digital platform issues, the indexes continued to be calculated without interruption, ensuring minimal disruption to the markets.