Yesterday's Microsoft system crash caused a huge wave in various industries around the world, and the capital markets were no exception.

Overnight, the "culprit" $CrowdStrike (CRWD.US)$opened down 15%, eventually fell 11.1%, the largest single-day decline since 2022, closing at $304.96, with a total market value of $74.215 billion.

$Microsoft (MSFT.US)$Once down nearly 2%, eventually fell 0.74%, closing at $437.11, with a total market value of $3.25 trillion.

Following yesterday's large-scale IT failure, causing flight cancellations and market chaos, global companies are in turmoil, Wall Street bank employees unable to log in to their systems, and even a trading counter at Haitong Securities apparently affected. According to FlightAware, as of noon Eastern Time on the same day, more than 2,000 domestic, inbound, or outbound U.S. flights had been canceled, with more than 5,300 delayed. However, as technical problems are gradually resolved, global flights are slowly resuming. What will happen next?

Following yesterday's large-scale IT failure, causing flight cancellations and market chaos, global companies are in turmoil, Wall Street bank employees unable to log in to their systems, and even a trading counter at Haitong Securities apparently affected.

According to FlightAware, as of noon Eastern Time on the same day, more than 2,000 domestic, inbound, or outbound U.S. flights had been canceled, with more than 5,300 delayed.

However, as technical problems are gradually resolved, global flights are slowly resuming.

On July 19, the White House confirmed that President Biden had been briefed on the large-scale technical failure at CrowdStrike, and his team is in contact with CrowdStrike and the affected parties.

Attention has increased on CrowdStrike.

This incident has brought CrowdStrike to the public's attention and made it the focus of discussion.

After the event, CrowdStrike CEO George Kurtz posted an article explaining the situation, but did not apologize.

He explicitly stated that the event was not a cyber attack, and that CrowdStrike had discovered the problem and deployed a fix.

According to a statement posted on the CrowdStrike website, on July 19, CrowdStrike issued a sensor configuration update to Windows systems, triggering a logic error that caused the affected systems to crash and bluescreen.

Consulting firm Marsh & McLennan Cos. (MMC), which focuses on risk, strategy, and human capital, predicted that more than 75 customers may file network failure claims due to the global CrowdStrike crash.

CrowdStrike's main business is security systems. Its products can protect enterprises from ransomware attacks, mainly serving enterprise users, with few users on personal computers and not widely known by the public.

According to market research firm IDC, CrowdStrike occupies about 18% of the $12.6 billion global endpoint protection software market, second only to competitor Microsoft's 25.8% market share.

Crowdstrike's fundamentals are good. In the first quarter of fiscal year 2025, Crowdstrike had revenue of $0.921 billion, a YoY increase of 33%; non-GAAP diluted net income was $0.93 per share, a YoY increase of 63%.

Following the stock price plummet, 'Mujingjie's' Ark Investment Management sold 88,545 shares of Roblox stock, 17,607 shares of Tesla stock, and 16,758 shares of Coinbase stock, and bought 38,595 shares of CrowdStrike stock.

Musk: CrowdStrike has been removed.

Musk is also affected, and Tesla has suspended certain production lines due to global IT issues.

According to media reports, Tesla's super factories in Austin, Texas and Nevada have allowed some workers to leave early, and the affected workers have not been notified when production can resume.

An X website user asked Musk if CrowdStrike had been removed from all his company's computers, including SpaceX, Tesla, X, xAI, The Boring Company, and Neuralink.

Musk responded that they have removed CrowdStrike from all systems. He also warned that this IT interruption will 'cause the automotive supply chain to grind to a halt.'

Editor/Somer