Biden withdraws from the race and endorses Harris

This report comes from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open keeps investors informed of everything they need to know, no matter where they are in the world. Like what you see? You can subscribe here.

Biden withdraws
president Joe Biden on Sunday Resign this Presidential campaign be opposed to Donald Trump and supported the Vice President Kamala Harris As the Democratic nominee, he bowed to pressure from party members and withdrew from the race. Harris said in a statement: “I am honored to have the president’s endorsement and my goal is to win the nomination.” Her next stepMeanwhile, Republican lawmakers Calls for Biden to resignWhat does this mean for the market? CNBC’s Jesse Pound writes ‘Trump trade’ could stall.

CrowdStrike Outages
almost 8.5 million devices affected Faulty software update released by cybersecurity firm Crowdfundingwhich caused a global IT outage on Friday. The outage affected services in industries such as banking, healthcare and aviation. Flights were grounded, TV broadcasters went offline and businesses scrambled to resolve the ongoing problems. Delta Airlines 800 mainline flights cancelled On Sunday, the company offered employees additional pay in an effort to resume operations. Share price plummeted 11% Friday. You can read more How a software update caused one of the world’s largest IT outages. More coverage from CNBC below How the next IT crisis will happen.

Biggest weekly loss
this S&P 500 and Nasdaq Composite Index Publish their Biggest weekly loss Since April, they have fallen nearly 2% and 3.7%, respectively. Investors have shifted from mega-cap AI-related stocks to cyclical stocks in anticipation of rate cuts, leading to Dow Jones Industrial Average rose 0.7%, while small-cap stocks dominated Russell 2000 Up 1.7%. 10-year Treasury yield Ministry of Finance Slightly higheralthough US oil prices A plunge of more than 3%.

Boeing ‘disappoints’ customers
BoeingBoeing’s new commercial unit chief said production of its 737 Max jetliners is showing signs of improvement, while acknowledging that the manufacturer has Passengers ‘disappointed’ by flight delays“We have impacted their business, we have not delivered on our promises and we have not been the partner they expect and need,” Stephanie Pope said ahead of the Farnborough Airshow outside London. However, she was confident Boeing was on a path to improve production quality, noting that 737 Max production had increased to 38 a month.

Asian stocks fall as China cuts rates
Markets in Asia Pacific mostly fell Stocks fell as China’s central bank unexpectedly cut interest rates to support the economy. China’s mainland CSI 300 index fell 0.76%, while Hong Kong Hang Seng Index Up 0.82%. Japan’s export-oriented Nikkei 225 Index South Korea fell 1.14%. Kospi Australia S&P/ASX 200 Down 0.76%.

(Pro) Is it time to be bearish?
Bank of America strategist Sebastian Raedler urged investors to remain cautious as markets hit record highs, noting that economic indicators are worrisome. Warning of a possible stock market correction,predict S&P 500 It could drop to 5,400.

Markets are grappling with the new U.S. election landscape after Biden abruptly announced on Sunday that he would end his reelection campaign against Trump. CNBC’s Jim Cramer shared his thoughts on the Why the ‘Trump trade’ is on hold while uncertainty reigns.

It’s not just politics that is causing uncertainty. Global IT outages are throwing organizations and individuals into disarray, bringing operations and daily work to a standstill. Crowdfunding Content update triggered global computer outages, leading to the dreaded blue screen of death Countless Microsoft Windows systemsThe accident had far-reaching consequences, disrupting flights, medical procedures and daily life from New York to New Delhi.

CrowdStrike’s stock price plummeted, its valuation slashed by billions of dollars, and its reputation was damaged. It immediately became Memes On social media. Even Elon Musk Tweet On X, he has removed CrowdStrike from his computer.

“This is a shameful moment for CrowdStrike.Dan Ives of Wedbush Securities told CNBC. “The biggest issue is brand damage. CrowdStrike became a household name, and that’s not a good thing.”

The incident also raised concerns about the vulnerability of tech giants, with Federal Trade Commission Chairwoman Lina Khan highlighting the risks of concentrated market power and “fragile systems.” “Concentrated production leads to concentrated risk, so a single natural disaster or disruption can have a cascading effect.” Khan wrote in a series of postsKhan stopped short of announcing a formal investigation, but she linked the matter to past efforts to scrutinize frequent acquisitions in the cloud computing and technology sectors.

Although Ives expects CrowdStrike to be called back to Washington for a hearing, he believes it could lead to acquisitions by large tech companies because of “some of the dangers” posed by third-party updates. “This bodes more positively for M&A between large tech companies and cyber.”

Having experienced $900 billion tech stock crash. Earnings season kicks off and letter and Tesla This Tuesday will be a key test of whether massive investments in artificial intelligence by industry giants such as Google, Microsoft and Meta are bearing fruit. Microsoft and apple Earnings reports are expected to roll out next week, further weighing on investor sentiment. CNBC’s Fred Imbert has more. Big Benefits.

Two economic reports worth watching should provide more clues to the Fed’s interest rate decision. The first reading on second-quarter GDP will be released on Thursday, and the Fed’s favorite inflation measure, the core PCE price index, will be released on Friday. You can read more here Find out what to expect next week.

— CNBC’s Alex Harring, Jesse Pound, Kevin Williams, Leslie Josephs, Josie Rozzelle, Kevin Breuninger, Dan Mangan, Zev Fima, Spencer Kimball and Lim Hui Jie contributed to this report.