Dow tumbles 500 points as growing AI anxiety, hot inflation rattle Wall Street | Latest Tech News
The Dow plummeted more than 500 points Friday as financial and tech shares had been hit arduous by a handful of persistent investor worries.
The blue-chip Dow slumped 1%, to 48,977.922. For the week, the index was down 1.3%, its largest weekly drop since November.
The S&P 500 misplaced 0.4%, and the Nasdaq dropped or 0.9%. The tech-heavy Nasdaq slid 3.4% for the month, it largest decline since March 2025.
The Nasdaq and the S&P 500 had their steepest month-to-month drop in practically a yr. AFP via Getty Images
“To wrap up the month of February, we were reminded there are still some cracks out there,” said Ryan Detrick, chief market strategist at Carson Group in Omaha, Nebraska. “Adding to the day’s weakness was the hotter inflation data, potentially pushing back on the idea of a dovish Fed later this year.”
“It’s been a rough go in February, but corporate America is looking at over a 14% gain in earnings in the fourth quarter,” Detrick added. “The reality is that earnings drive long-term stock gains and this was a very impressive earnings season.”
Financial shares slid after worries of contagion in the sector after studies that Barclays, Jefferies JEF.N, Wells Fargo and other banks face potential losses associated to the collapse of UK mortgage supplier Market Financial Solutions Ltd., amid broader considerations about lending requirements. Wells Fargo, Jefferies and US-listed shares of Barclays ended sharply decrease.
“This is a classic risk-off environment where the pure defensive areas are finding some strength while the market is turning its head on some of the more cyclical growth areas that are clearly lagging,” Detrick said.
On the economics entrance, a hotter-than-expected Producer Price Index studying fortified expectations that the Federal Reserve is unlikely to cut its key rate of interest in the close to time period.
Financial markets are at the moment pricing in a 96.1% probability that the central bank will depart the Fed funds goal charge in the three.50% to 3.75% vary at its upcoming financial coverage assembly in March, according to CME’s FedWatch device.
REUTERS
Nvidia slid 4.2%, extending the earlier session’s 5.5% drop despite stable earnings, a signal that risk sentiment for all issues AI remained shaky.
Zscaler plunged 12% after the cloud security firm reported a wider web loss in the second quarter.
Netflix added 14% as buyers cheered its resolution to exit the combat for Warner Bros. Discovery, which dropped 2%. Paramount Skydance rose 21% after profitable the race for some of the world’s most prized TV and movie belongings.
Producer costs, which measure inflation at the wholesale degree, elevated more than anticipated in January, suggesting inflation might decide up in the months forward. REUTERS
Jack Dorsey’s Block surged 17% after the funds firm said it might cut over 4,000 jobs, practically half its workforce, as half of an overhaul to embed AI across operations.
Dell climbed 22% after the PC-maker said it expects income from its key AI-optimized servers business to double in fiscal yr 2027 and promised to return more money to shareholders.
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