Inflation and AI Fears Push Stocks Lower on Feb. 27
Fresh inflation data and renewed AI jitters pushed U. S. equities lower on Feb. 27, with the Producer Price Index showing wholesale prices rose 0. 8% in January and putting pressure on growth and tech names.
Major indexes slipped across the board
The S&P 500 fell 0. 43% to 6, 878. 88 today and was on course to finish February down 1. 43%, its worst performance in 11 months. The Nasdaq Composite slid 0. 92% to 22, 668. 21, while the Dow Jones Industrial Average dropped 1. 05% to 48, 977. 92 as inflation data and AI jitters punished tech and growth stocks.
Inflation jump rattled markets
Today’s Producer Price Index data shook markets: wholesale prices increased by 0. 8% in January, much more than economists had predicted. The hotter-than-expected reading arrived on top of jitters over private credit, ongoing AI bubble nerves, and geopolitical tensions. Higher inflation could delay Fed rate cuts.
Tech winners and losers: Nvidia, Dell, Ambarella, Zscaler
Nvidia extended its post-earnings slide and turned negative for 2026, amplifying the AI-linked sell-off. By contrast, Dell soared 21. 93% to close at $148. 08 as investors responded positively to its growth forecast. Ambarella plunged more than 18% in intraday trading despite positive earnings. Zscaler erased yesterday’s gains after it beat analyst expectations but sank on billings concerns.
Media takeover drama reshaped some stocks
The bidding war for Warner Bros. Discovery seems to have reached a conclusion, depending on regulatory approval. Paramount Skydance gained over 20% after it agreed to pay around $110 billion to acquire the Hollywood brand. Netflix also gained after pulling out of the deal.
Financial sector strain, lender collapse and layoffs
Financial stocks came under particular strain this week. The collapse of Market Financial Solutions, a U. K. mortgage lender, sparked contagion fears. Adding to sector concerns, Block announced it would lay off around 40% of its staff, highlighting disruption tied to AI and other pressures.
The market narrative was further punctuated by an investment service pitch embedded in coverage: a stock advisory team identified 10 stocks it views as top buys and noted that the S&P 500 Index was not among them. The advisory highlighted past recommendations—citing hypothetical returns if investors had bought Netflix and Nvidia on specific earlier dates—and said its total average return is 916%, compared with 194% for the S&P 500. The advisory’s returns are listed as of February 27, 2026. Individual commentary notes that Emma Newbery holds positions in Nvidia and Zscaler, and the advisory entity has positions in and recommends Block, Netflix, Nvidia, Warner Bros. Discovery, and Zscaler; a disclosure policy is noted.
Higher inflation could temper expectations for near-term policy easing, and investors are parsing the PPI’s implications for Federal Reserve timing of rate cuts.
