Key Points
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Dow drops more than 600 points after stronger than expected PPI
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Nasdaq and S and P 500 also decline, heading for monthly losses
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Markets rattled by AI disruption fears and corporate shakeups
NEW YORK. Wall Street closed sharply lower Friday after fresh inflation data came in hotter than economists expected, intensifying concerns that interest rates could remain elevated for longer.
The Dow Jones Industrial Average fell about 1.3 percent, shedding more than 600 points in afternoon trading. The Nasdaq Composite dropped roughly 1.2 percent, while the S and P 500 declined about 0.7 percent.
The selloff puts major US indexes on track to finish February in negative territory, with the Dow poised to snap an eight month winning streak.
Inflation surprise rattles markets
The latest Producer Price Index showed wholesale inflation rose 0.5 percent in January, above the 0.3 percent increase economists had forecast. Core PPI, which excludes food and energy, jumped 0.8 percent, also well above expectations.
The hotter reading renewed investor worries that the Federal Reserve may keep interest rates higher for longer than previously hoped.
AI disruption fears add pressure
Market nerves were already elevated following major corporate developments tied to artificial intelligence.
Block stunned investors by announcing plans to cut nearly half its workforce as part of an AI driven restructuring. Co founder Jack Dorsey warned that many companies could soon make similar moves, fueling broader concerns about AI’s impact on jobs and service industries.
Technology heavy sectors including software, real estate and wealth management have already shown signs of strain.
Mixed corporate moves
Not all stocks were lower. Netflix shares rose after the company abandoned its pursuit of Warner Bros. Discovery, while Paramount Skydance moved forward with its acquisition plans.
Meanwhile, Nvidia shares slipped again, extending recent weakness in AI related stocks.
Commodities and crypto diverge
In February trading, hard assets showed strength even as risk assets struggled. Gold climbed about 11 percent for the month, while silver surged roughly 19 percent.
Cryptocurrencies moved the opposite direction. Bitcoin is down around 15 percent in February and remains nearly 50 percent below its October 2025 peak.
Friday’s decline underscores how sensitive markets remain to inflation surprises and AI driven uncertainty. With major indexes now facing potential monthly losses, investors are closely watching upcoming economic data and Federal Reserve signals for clues about the market’s next move.
