US Stock Market Today: Dow falls 615 points as hot PPI inflation data shocks markets. AI job fears from Block layoffs and Iran war tensions add to sell-off. Bitcoin near $67K.
US Stock Market Today Updates (Image: File)
Stock Market Today Updates: The US stock market saw a sharp fall on Friday, February 27, 2026, as the Dow Jones Industrial Average dropped 615.77 points. Selling pressure grew after higher-than-expected inflation data ended hopes of early Federal Reserve rate cuts, while worries over AI-led job losses and rising geopolitical tensions increased investor concern.
| Index | Level | Change | % Change |
|---|---|---|---|
| Dow Jones | 48,883.43 | -615.77 | -1.24% |
| Nasdaq | 22,667.77 | -210.61 | -0.92% |
| S&P 500 | 6,863.78 | -45.08 | -0.65% |
| NYSE Composite | 23,434.61 | -90.23 | -0.38% |
| Russell 2000 | 2,628.18 | -49.11 | -1.83% |
The Dow Jones Industrial Average dropped 615.77 points to 48,883.43, its sharpest decline in weeks. Financial giants led the blue-chip decline, with American Express falling 6.41% and Goldman Sachs dropping 4.93%. Defensive gains from McDonald's and Coca-Cola, which both hit all-time highs, helped limit the index's losses but could not offset the broad-based selling pressure.
The technology-heavy Nasdaq Composite fell 0.92% to 22,667.77, though it had been down more sharply earlier in the session. Chipmakers and AI-linked stocks continued their recent slide. Nvidia extended its post-earnings decline, falling another 2% after dropping over 5% on Thursday. Cybersecurity firm Zscaler plummeted 15% after missing quarterly billings expectations, weighing heavily on the index.
The benchmark S&P 500 declined 0.65% to 6,863.78, with pressure spread across multiple sectors. Technology and financials recorded the largest losses. The sell-off represents a broad repricing of growth-sensitive assets as investors reassess the economic outlook. Notably, 31 stocks in the index still managed to hit new 52-week highs, including utilities and consumer staples giants.
The industrial and energy stocks saw the largest falls, causing the NYSE Composite to drop 0.38% to roughly 23,434.61. As institutional investors reduced their holdings due to concerns around future inflation and Federal Reserve policy, trading volume increased.
The sell-off accelerated following the release of the January Producer Price Index (PPI), which was substantially higher than predicted. The headline PPI increased by 0.5%, versus economists' expectations of 0.3%. More troubling, core PPI, which includes food and energy, increased by 0.8%, more than doubling the 0.3% projection.
Stephen Kolano, chief investment officer at Integrated Partners, explained the market's reaction. "Inflation isn't solved yet," he said. This creates a dilemma for the Federal Reserve: whether to cut rates to spur growth or hold steady to continue fighting inflation. The resulting uncertainty is weighing heavily on markets.
A second key cause is the growing concern that artificial intelligence would disrupt the work sector. Block Inc., the fintech startup run by Jack Dorsey, has announced that it will let off almost 4,000 employees—nearly half of its workforce—citing a shift toward AI-driven operations.
This report aroused widespread concerns in the technology and banking sectors. Salesforce sank more than 3%, while Microsoft fell more than 1%. Investors are becoming increasingly skeptical that large tech companies' massive AI capital expenditures will result in long-term returns.
Yes, geopolitical worries are adding significant pressure. Fears of a potential US military strike on Iran over the weekend have escalated, driving oil prices higher. WTI Crude climbed more than 3% to approximately $67.36 per barrel.
Higher oil prices spread across the economy, increasing costs for transport, production, and eventually consumers. This creates added inflation pressure at a time when markets were expecting some relief.
Today's safe-haven asset performance was uneven. Gold fell 0.8% to approximately $1,940 per ounce, while silver held stable near recent levels. The moderate falls indicate profit-taking rather than a full flight to safety, with the strong dollar offsetting some geopolitical hedging demand.
Bitcoin fell more than 2.7%, trading near $67,000. Ethereum dropped below the psychological $2,000 level earlier in the session before recovering slightly to around $2,026, down 1.6%.
Digital assets are increasingly moving in sync with tech stocks. When investors reduce exposure to high-growth, risk-sensitive assets, cryptocurrencies tend to suffer alongside equities. The Nasdaq Crypto Index also lost more than 2%.
Initial jobless claims for the week ending February 21 came in at 212,000, slightly lower than the forecasted 216,000 and down from the previous week's 218,000. Continuing claims declined to 1.86 million.
The labor market remains stable but shows signs of gradual cooling. This supports the narrative of slowing growth rather than an imminent recession. However, Stephen Kolano noted concerns about recent layoff announcements. "I don't see a clear sign that unemployment is not going to move higher just yet," he said.
Yes. Companies delivering weak guidance are being harshly penalized. Beyond Nvidia's continued slide and Zscaler's 15% plunge, other semiconductor names like Broadcom and Applied Materials fell sharply. Investors currently have little patience for unmet expectations, and margin compression in tech hardware is increasing volatility.
Heavy selling in AI-linked and semiconductor names like Nvidia and Zscaler outweighed gains in defensive tech stocks like Intuit and Netflix.
Current data suggests a correction driven by sector rotation and valuation concerns, not a systemic crash.
Investors continue to book gains despite rising concerns about whether AI's large capital spending can produce long-term returns.
No. Claims remain near historical lows, showing labor market moderation rather than a surge in layoffs.
Disclaimer: The information provided in this article is for informational purposes only and does not constitute financial advice. The Sunday Guardian suggests that readers consult with a certified financial advisor before making any investment or money-related decisions. The stock market involves significant risk.
