NEW YORK, February 27, 2026, 12:33 (EST) — Regular session
- The Dow Jones Industrial Average slid roughly 1.2% as of midday. Both the S&P 500 and Nasdaq were also trading in the red.
- Producer prices jumped more than expected in January, putting fresh pressure on the Fed’s rate path.
- March jobs numbers and inflation figures are on investors’ radar before the Fed’s meeting in mid-March.
The Dow Jones Industrial Average dropped more than 600 points by midday Friday, pressured by a stronger-than-anticipated wholesale inflation print and renewed volatility in AI-focused stocks. As of 11:47 a.m. ET, the Dow had fallen 602.06 points, marking a 1.22% decline to 48,897.14. The S&P 500 retreated 0.66%, while the Nasdaq Composite slipped 0.99%. Both the S&P 500 and Nasdaq tracked for their heaviest monthly losses since March 2025.
The Dow’s latest slide has people reassessing what counts as “expensive”—not just for semiconductors, but banks and the broader AI play, too. “It’s time for a breather,” said Talley Leger, chief market strategist at The Wealth Consulting Group, who’s taken profits in chip names after a solid rally. Reuters
It was the Producer Price Index—PPI for short—that set things off. Businesses saw prices climb 0.5% in January, outpacing the 0.3% gain economists in a Reuters poll had penciled in. That uptick only bolstered bets that the Federal Reserve will keep rates steady until at least June. “We expect the Fed to remain on pause,” said Ben Ayers, senior economist at Nationwide, pointing to the January PCE inflation data now pushed back to March 13. Reuters
Thursday’s finish underscored the pressure weighing on tech stocks—the Dow managed a modest gain of 17.05 points, but the Nasdaq slid 1.18% as Nvidia tumbled 5.5% despite turning in robust earnings. “It feels like an Nvidia hangover,” said Michael Green, chief strategist at Simplify Asset Management. Reuters
Friday’s Dow drop came down to just a handful of stocks. American Express tumbled 6.8%, while Goldman Sachs lost 4.3%. The two shaved roughly 384 points off the price-weighted index, according to MarketWatch data. Here, every $1 swing in a Dow component moves the index by about 6.16 points.
Block surged over 16%, grabbing attention outside the Dow after the fintech announced plans to slash its headcount nearly in half while rolling out AI throughout its business. Morningstar’s Brett Horn called the long-term effects of the cuts and AI push “uncertain,” though he acknowledged margins might get a boost in the short run. Reuters
Dell Technologies jumped roughly 17% after the company projected that AI-server revenue is on pace to double by fiscal 2027, while also announcing a 20% boost to its dividend and tacking on a $10 billion share buyback. J.P. Morgan’s Samik Chatterjee and team highlighted Dell’s “AI compute” offering for enterprise clients as a key factor bolstering their guidance. Reuters
Netflix jumped over 10% following its decision to walk away from a bidding war for Warner Bros Discovery, citing that the transaction stopped being “financially attractive.” Ben Barringer, who leads technology research at Quilter Cheviot, described the choice as a “tick in the box” for financial discipline. Reuters
The tape’s not exactly sturdy. Persistent inflation, especially with tariff costs bleeding into price numbers, could see investors delaying those hoped-for rate cuts and insisting on cheaper valuations. That spells trouble for banks and the high-fliers among growth stocks.
The February U.S. employment report is due March 6 at 8:30 a.m. ET. Investors will be watching for signs that wage and job growth have slowed enough to take the edge off inflation.
February’s Consumer Price Index hits on March 11, a data point that tends to jolt rate bets throughout stocks, bonds, and the dollar in a hurry.
Eyes turn to the Fed’s March 17–18 meeting, with the policy call and press conference dropping on March 18. That’s the moment investors will watch for any change in tone—will inflation worries take the front seat, or does growth get the spotlight?
