Biden Exits Presidential Race, Backs Harris as Democratic Nominee
- President Biden has officially ended his reelection campaign and expressed his support for Vice President Kamala Harris as his successor.
- The announcement comes amid significant market downturns, with the S&P 500 and Nasdaq experiencing their largest weekly losses.
- CrowdStrike's recent performance has also been marked by failure, contributing to a challenging economic landscape.
In a surprising turn of events, President Joe Biden announced on Sunday that he would withdraw from the presidential race against Donald Trump, endorsing Vice President Kamala Harris as the Democratic Party's nominee. This decision comes amid mounting pressure from party members for Biden to step aside, reshaping the political landscape as the 2024 election approaches. In other news, a significant cybersecurity incident unfolded when a faulty software update from CrowdStrike affected approximately 8.5 million devices, leading to a global IT outage on Friday. The fallout from this incident was severe, with CrowdStrike's shares plummeting by 11%. Analysts are now scrutinizing the implications of this blackout and its potential impact on the tech industry. Meanwhile, Boeing's production of 737 Max planes is reportedly improving, according to the new head of its commercial unit. However, he acknowledged that the company has disappointed customers with ongoing delays. This comes as over 120 S&P 500 companies, including several Dow components, prepare to report their earnings this week, heightening the intensity of the second-quarter reporting season. As markets adjust to Biden's unexpected exit and the implications for the upcoming election, CNBC's Jim Cramer noted that the "Trump trade" may be on hold, with uncertainty prevailing. Additionally, experts predict that CrowdStrike may face congressional hearings, which could lead to increased acquisitions by Big Tech as they navigate the challenges posed by third-party software updates.