New York, Feb 27, 2026, 13:20 (EST) — Regular session
- U.S. stocks fell after January producer prices surprised to the upside, keeping inflation nerves in play.
- Tech and financials led the slide; Dell and Block bucked the broader tape.
- Traders now turn to next week’s jobs report and fresh inflation readings.
Wall Street’s main indexes fell on Friday, with technology and financial stocks weighing as investors digested hotter-than-expected producer price data. The S&P 500 was down 0.7%, the Nasdaq was off 1.1% and the Dow was down 1.3%. 1
The timing matters. February is ending with investors already jumpy about how much profit Big Tech’s heavy spending on artificial intelligence will actually deliver, and a firmer inflation pulse keeps the Federal Reserve story messy.
A bout of inflation anxiety has also become a valuation test. “Inflation has reared its ugly head,” said Ben Fulton, CEO of WEBs Investments, as a fresh bout of selling hit growth shares. 2
Friday’s U.S. economic calendar was led by the producer price index (PPI), a measure of prices received by businesses. The Labor Department said the PPI for final demand rose 0.5% in January and was up 2.9% from a year earlier; a “core” measure that strips out food, energy and trade services rose 0.3% on the month. 3
Thursday’s close had already left markets on the back foot after Nvidia’s sharp post-earnings drop tugged at the broader tech complex. The S&P 500 ended down 0.5% and the Nasdaq fell 1.2%, while the Dow eked out a small gain. 4
On the stock tape Friday, Nvidia slid again and the broader technology index fell. Block jumped after it laid out job cuts tied to an overhaul that leans more heavily on AI, while Dell surged after it flagged growth in AI-optimized servers; Netflix climbed after stepping away from a potential bid for Warner Bros Discovery, and Zscaler sank after a wider quarterly loss. 2
Beyond inflation, the calendar also brought a stronger regional factory signal. The Chicago PMI (Chicago Business Barometer) rose to 57.7 in February, above forecasts and well above the 50 line that separates expansion from contraction. 5
Consumer mood, by contrast, stayed subdued. The University of Michigan’s final February reading of consumer sentiment edged up to 56.6 from 56.4 in January, with the survey noting that many consumers continued to cite high prices as a strain. 6
There’s a catch for traders leaning too hard on Friday’s PPI shock. Producer prices don’t always pass straight through to consumer inflation, and month-end flows can exaggerate moves in crowded trades, especially in megacap tech.
Next up, investors will focus on the February U.S. jobs report on March 6 and the February consumer price index on March 11, both seen as key inputs for the Fed’s rate path. 7
