The major U.S. index futures are currently pointing to a roughly flat open on Friday, with stocks likely to show a lack of direction following recent tech-driven weakness.

A lack of major U.S. economic data may keep some traders on the sidelines as they digest the notable declines by the tech-heavy Nasdaq and the S&P 500 over the two previous sessions.

Traders are also reacting to news of a major IT outage purportedly caused by an update by cybersecurity firm CrowdStrike (NASDAQ:CRWD), which is plunging by 12.9 percent in pre-market trading.

The operations of major banks, media outlets, hospitals and airlines worldwide were affected due to the widespread outage.

Shares of Microsoft (NASDAQ:MSFT) are down by 1.3 percent in pre-market trading as many of the software giant’s users have also been impacted by the issue.

Stocks showed a lack of direction in early trading on Thursday before coming under considerable selling pressure over the course of the session. With the downward move, the Nasdaq and the S&P 500 added to the steep losses posted in Wednesday’s session.

The major averages all finished the day firmly in negative territory. The Dow tumbled 533.06 points or 1.3 percent to 40,665.02, the Nasdaq fell 125.70 points or 0.7 percent to 17,871.22 and the S&P 500 slid 43.68 points or 0.8 percent to 5,544.59.

The weakness on Wall Street partly reflected concerns about the near-term outlook for the markets following the tech sell-off on Wednesday.

The tech-heavy Nasdaq record its worst day since December 2022 after a report from Bloomberg said President Joe Biden’s administration is considering tougher trade rules against companies in its chip crackdown on China.

Bloomberg said the administration has told allies that it’s considering using the most severe trade restrictions available if companies continue giving China access to advanced semiconductor technology.

“Geopolitical tensions have acted as a stark reminder to investors that even the hottest of all investment trends can meet bumps in the road,” said Dan Coatsworth, investment analyst at AJ Bell.

“While the news flow from chip-related companies has been solid, the market seems a bit more nervous than usual,” he added. “Early strength in the tech sector on Thursday quickly faded away, leaving investors wondering if we’re now heading towards a full-blown correction in the sector.”

In U.S. economic news, the Labor Department released a report showing first-time claims for U.S. unemployment benefits climbed by much more than expected in the week ended July 13th.

The Labor Department said initial jobless claims rose to 243,000, an increase of 20,000 from the previous week’s revised level of 223,000.

Economists had expected initial jobless claims to edge up to 230,000 from the 222,000 originally reported for the previous week.

Meanwhile, The Federal Reserve Bank of Philadelphia released a separate report showing growth by regional manufacturing was more widespread in the month of July.

The Philly Fed said its diffusion index for current general activity jumped to 13.9 in July from 1.3 in June, with a positive reading indicating growth. Economists had expected the index to inch up to 2.9.

The report said most future activity indicators also rose, suggesting more widespread expectations for overall growth over the next six months.

The Conference Board also released a report showing a modest decrease by its reading on leading U.S. economic indicators in the month of June.

The report said the leading economic index edged down by 0.2 percent in June after falling by a revised 0.4 percent in May.

Economists had expected the leading economic index to dip by 0.3 percent compared to the 0.5 percent decline originally reported for the previous month.

Airline stocks moved sharply lower over the course of the session, resulting in a 3.8 percent nosedive by the NYSE Arca Airline Index.

Substantial weakness was also visible among pharmaceutical stocks, as reflected by the 3.1 percent slump by the NYSE Arca Pharmaceutical Index.

Computer hardware and software stocks also saw considerable weakness, contributing to the continued decline by the tech-heavy Nasdaq.

Healthcare, banking and gold stocks also moved notably lower on the day, while housing stocks turned in a strong performance, with the Philadelphia Housing Sector Index jumping by 2.1 percent.