Global IT outage: four stocks to watch
The global IT outage has affected systems in major companies, but which stocks might be affected? All the stocks below trade ‘All Sessions’ on the IG platform.
Microsoft
While Microsoft's software was not responsible for the outage, its Windows system has been seriously affected, with systems crashing in companies across the global economy.
The IT giant said it was aware of the issue and was investigating the cause of the problem.
Microsoft’s stock price has fallen over 9% from the record high it reached earlier this month, in common with a number of other big tech stocks. The price has rallied sharply over the past year, remaining in a strong uptrend since late 2022.
The price has fallen below the 50-day simple moving average (SMA), currently $437.00, for the first time since late May. For the moment, this retracement leaves the bullish uptrend intact.
Having closed below the May highs, the next target would be the May low at $404.76.
Microsoft chart
CrowdStrike
As the firm behind the accidental outage, CrowdStrike's stock price has fallen dramatically, losing almost 17%. Like other tech firms, the stock had already been in retreat, but today’s news has sent the price to its lowest level since January.
The price tested the 200-day SMA, currently $287.88, something it has not done since May 2023 before recovering. It briefly moved below the April low at $281.00, before rebounding slightly.
CrowdStrike price chart
Palo Alto Networks
As a key competitor of CrowdStrike, Palo Alto Networks has seen its stock price stabilise after three days of losses. The stock has steadily clawed its way higher after the gap down in February, recently reaching its highest level in five months.
A recovery back above $340.00 would help sustain the momentum of the current uptrend, while a close below $320.00 signals more weakness ahead.
Palo Alto Networks chart
NVIDIA
Chip titan NVIDIA would never be far from any discussions around the impact of this outage.
The stock soared to a record high in early June, but has since fallen back to the 50-day SMA ($116.32). So far it has been less affected by the outage directly, but as the key bellwether of market sentiment in recent months any further developments could hit the shares.
Bulls are looking for a recovery above $125.00 to help solidify the stock price after recent weakness.
NVIDIA chart
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