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US stocks end lower

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Global cyber outage and disruption weigh on mood

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Dollar set for weekly gain

(Updates to 4:45 p.m. ET)

By Isla Binnie and Caroline Valetkevitch

NEW YORK, July 19 (Reuters) - World stock indexes fell

on Friday as a global cyber outage rattled investors by

disrupting operations across multiple industries, while the

dollar climbed along with Treasury yields.

The S&P 500 and Nasdaq registered their biggest weekly

percentage declines since April.

The outage hit services from airlines to banks to

healthcare.

Cybersecurity firm CrowdStrike ( CRWD ) fell 11.1% after an

update to one of its products appeared to trigger the outage

that affected customers using Microsoft's ( MSFT ) Windows

Operating System, disrupting businesses across sectors.

Microsoft ( MSFT ) ended down just 0.7%.

The Cboe Volatility index - Wall Street's "fear

gauge" - touched its highest level since late April.

"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 377.49 points,

or 0.93%, to 40,287.53, the S&P 500 lost 39.59 points, or

0.71%, to 5,505.00 and the Nasdaq Composite lost 144.28

points, or 0.81%, to 17,726.94.

MSCI's gauge of stocks across the globe

fell 6.58 points, or 0.80%, to 810.87. The STOXX 600

index fell 0.77%.

Investors also braced for important results in the U.S.

second-quarter earnings season in the upcoming weeks. Results

from megacaps will be in focus, with the S&P 500

technology-related sector falling 5.1% this week as investors

rotated into sectors that have languished so far in 2024.

Tesla and Google-parent Alphabet both

report on Tuesday, kicking off results from the "Magnificent

Seven" megacap group of stocks that have propelled markets since

early 2023. Microsoft ( MSFT ) and Apple ( AAPL ) are set to report the

following week.

DOLLAR RECOVERS

The dollar index climbed and was on pace for its first

weekly gain in three, bouncing back on recent U.S. economic data

and concerns about the technology outage.

The dollar index, which measures the greenback

against a basket of currencies including the yen and the euro,

gained 0.21% to 104.36, with the euro down 0.14% at

$1.0881.

Against the Japanese yen, the dollar strengthened

0.06% at 157.46.

The Federal Reserve is scheduled for its next policy

announcement at the end of July.

Markets expect only a slight chance for a cut of at

least 25 basis points (bps), while almost completely pricing in

a cut at its September meeting, according to CME's FedWatch

Tool.

U.S. Treasury yields rose as investors waited on fresh data

next week.

The yield on benchmark U.S. 10-year notes rose

5.5 basis points to 4.243%, from 4.188% late on Thursday.

Oil prices fell as investors eyed a possible ceasefire in

Gaza. U.S. crude lost $2.69 to settle at $80.13 a barrel,

while Brent fell to $2.48 to $82.63.

In cryptocurrencies, bitcoin gained 5.11% to

$67,083.35.