New York, Feb 27, 2026, 13:20 (EST) — Regular session
- U.S. stocks slipped as January producer prices came in hotter than expected, reigniting concerns over inflation.
- Tech stocks and financials pulled the market lower, though Dell and Block managed to move against the trend.
- Attention shifts to the upcoming jobs data and new inflation numbers due next week.
Wall Street’s key indexes slipped on Friday, dragged lower by losses in tech and financial names after producer price data came in above forecasts. The S&P 500 lost 0.7%. Nasdaq dropped 1.1%. The Dow finished down 1.3%.
The calendar flips with investors on edge over whether Big Tech’s big AI bets will translate into solid profits. A stickier inflation backdrop isn’t making the Fed’s path any clearer, either.
That jolt of inflation worry is putting valuations through the wringer. “Inflation has reared its ugly head,” said Ben Fulton, CEO of WEBs Investments, after another wave of selling knocked growth stocks. Reuters
The producer price index topped Friday’s U.S. economic releases. According to the Labor Department, January’s PPI for final demand climbed 0.5%, up 2.9% compared to the same month a year ago. The “core” figure, which excludes food, energy, and trade services, posted a 0.3% gain for the month. Bureau of Labor Statistics
Markets stumbled Thursday after Nvidia’s steep slide following its earnings weighed on tech as a whole. The S&P 500 slipped 0.5%, the Nasdaq lost 1.2%. The Dow, though, managed to finish a bit higher.
Nvidia lost more ground Friday, pulling the tech index lower with it. Block popped after announcing layoffs as part of a pivot toward more AI, while Dell rallied on upbeat guidance for its AI-focused server business. Netflix edged higher, distancing itself from any Warner Bros Discovery bid. Zscaler tumbled, hit by a bigger quarterly loss.
Aside from inflation data, there was another surprise: a pickup in regional manufacturing. Chicago’s PMI jumped to 57.7 for February, handily topping estimates and clearing the 50 mark—expansion territory by a healthy margin.
Consumers remain downbeat. The University of Michigan’s final read on February sentiment ticked up slightly to 56.6, barely above January’s 56.4. Survey responses still point to high prices weighing on household outlooks.
Traders betting heavily on Friday’s PPI jolt might want to tread carefully. Producer prices don’t necessarily translate directly to consumer inflation. Month-end flows also have a way of amplifying swings, especially where positions are thick in megacap tech.
Looking ahead, attention shifts to the February U.S. jobs numbers due March 6, and then the February CPI landing March 11—crucial data points for the Fed’s next moves on rates.
