On February 25, 2026, stocks fell sharply after the producer price index (PPI) data came in higher than expected, intensifying concerns about persistent inflation. The Dow Jones Industrial Average dropped 620 points (1.3%), while the S&P 500 and Nasdaq dropped by 0.7% and 0.9%, respectively. This month has seen increasing worries about the influence of artificial intelligence (AI) on various industries and the economy, compounded by Jack Dorsey’s fintech company Block announcing layoffs of over 4,000 employees.
Many financial and technology stocks, including Salesforce and Microsoft, suffered losses due to fears of AI disruption. Nvidia’s stock declined following disappointing news regarding its contracts and broader market sentiment. The PPI rose 0.5% in January, surpassing expectations of 0.3%, with the core PPI rising 0.8%. Analysts noted that rising inflation adds more uncertainty for investors, contributing to a tough month for the markets, particularly for the Nasdaq, which may see a decline of over 3%. The iShares Expanded Technology Software ETF fell 10% this month, marking a 23% loss year-to-date.
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