CrowdStrike CEO warns AI-driven cyber threats as markets slip

U.S. equity markets fell on Friday, with the Dow Jones Industrial Average slipping more than 1% while the S&P 500 and Nasdaq Composite closed in negative territory. Defensive stocks added to the decline, extending a week of weaker performance in the artificial-intelligence sector. Energy shares rose after West Texas Intermediate crude traded above $103 per barrel and Brent crude topped $116, driven by heightened tensions in the Middle East.

The CME FedWatch tool indicated roughly a 10% probability of a Federal Reserve rate hike at its upcoming meeting, while market expectations for a December increase remain near 78%. Analysts noted that the Fed’s next move could be its second hike in 2026, following a September increase that ended a three-year pause.

In the technology arena, cybersecurity firms posted gains. CrowdStrike and Palo Alto Networks were highlighted as top performers for the day and the week. CrowdStrike CEO George Kurtz told CNBC that recent research revealed AI could automate the exploitation of known security flaws in the PHP programming language, which powers a large share of internet-facing servers. > "This affects tens of millions of internet-facing servers," Kurtz said. He added that, despite patches released on Wednesday, many outdated PHP versions remain in use and that "you're going to see a lot of breaches happening in the coming months."

Kurtz emphasized that AI-enabled attacks have been doubling each month since July and that defending against them may require AI-based security solutions. He noted that CrowdStrike trimmed its position in its own portfolio to reduce exposure, not because of diminished confidence in the business.

The week ahead features a busy earnings schedule, with roughly one-third of S&P 500 constituents set to report, including major names such as Boeing, GE Vernova, Alphabet, Microsoft, FedEx, Linde, Eli Lilly, Amazon, Intel, Starbucks and FedEx Freight.