Global Markets React to Tech Sell-Off, Cyber Outage

Global stocks declined as investors shifted from growth stocks amidst a tech sell-off, spurred by Sino-U.S. trade tensions, weak Chinese data, and doubts about U.S. presidential outcomes. A global cyber outage further disrupted sectors like airlines and banking. U.S. stock futures fell, affecting all major indices.

Global stock markets pulled back from record highs on Friday as investors rotated away from megacap growth stocks. The retreat followed a turbulent week marked by Sino-U.S. trade tensions, uncertainties over U.S. presidential prospects, and weak Chinese economic data. Additionally, a global cyber outage disrupted services ranging from airlines to banks.

U.S. stock index futures indicated further pain on Wall Street, following losses in all three major indices on Thursday. European and Asian stocks were also broadly lower, with technology stocks in Asia continuing to struggle. MSCI's world stock index fell to a two-week low.

Head of Global Macro Strategy at State Street Global Markets, Michael Metcalfe, noted that the potential return of a Trump presidency has sparked market rotations. Investors are also watching the Federal Reserve's response to inflation data and the U.S. earnings season. Compounding market worries, a global tech outage affected multiple industries, including airlines and banking.