Global Markets Shaken by Cyber Outage: Dollar Gains Amid Investor Jitters

World stock indexes dropped on Friday owing to a global cyber outage affecting services from airlines to banks. Investors were further unsettled after a volatile week. The dollar rebounded, snapping a two-week losing streak. Major tech stocks like Microsoft and CrowdStrike were affected, while oil prices saw a decline.

World stock indexes fell on Friday as a global cyber outage rattled investors, while the dollar climbed and was on track to snap a two-week streak of declines. The outage hit services from airlines to banks, unsettling markets further after a turbulent week.

Cybersecurity firm CrowdStrike was last down 12.1% after an update to one of its products appeared to trigger the outage that affected customers using Microsoft's Windows Operating System, disrupting businesses across sectors. Microsoft was down just 1%. The Cboe Volatility index - Wall Street's "fear gauge" - rose to its highest level since April 25.

"Today's outages remind us that services can have supply chain disruptions too," said Jeff Kleintop, chief global investment strategist at Charles Schwab. "While not a cyberattack, the outage is a worrisome reminder of how our systems are deeply integrated." The Dow Jones Industrial Average fell 387.81 points, or 0.95%, to 40,277.21, the S&P 500 lost 38.88 points, or 0.70%, to 5,505.71 and the Nasdaq Composite lost 145.15 points, or 0.81%, to 17,726.07.