The S&P 500 (SNPINDEX:^GSPC) fell 0.43% to 6,878.88 today, on course to finish February down 1.43% — its worst performance in 11 months. The Nasdaq Composite (NASDAQINDEX:^IXIC) slid 0.92% to 22,668.21 and the Dow Jones Industrial Average (DJINDICES:^DJI) dropped 1.05% to 48,977.92 as inflation data and AI jitters punished tech and growth stocks.

Market movers

Nvidia (NASDAQ:NVDA) extended its post-earnings slide and turned negative for 2026, amplifying the AI-linked sell-off. However, Dell (NYSE:DELL) soared 21.93% to close at $148.08 as investors responded positively to its growth forecast.

Ambarella (NASDAQ:AMBA) plunged more than 18% in intraday trading despite positive earnings. Zscaler (NASDAQ:ZS) erased yesterday’s gains. The firm beat analyst expectations, but sank on billings concerns.

The bidding war for Warner Bros. Discovery (NASDAQ:WBD) seems to have reached a conclusion, depending on regulatory approval. Paramount Skydance (NASDAQ:PSKY) gained over 20% after it agreed to pay around $110 billion to acquire the Hollywood brand. Netflix (NASDAQ:NFLX) also gained after pulling out of the deal.

What this means for investors

Today’s Producer Price Index (PPI) data shook markets. Wholesale prices increased by 0.8% in January, much more than economists had predicted. Higher inflation could delay Fed rate cuts. The inflation data came on top of jitters over private credit, ongoing AI bubble nerves, and geopolitical tensions.

Financial stocks came under particular strain this week. The collapse of Market Financial Solutions, a U.K. mortgage lender, sparked contagion fears. Plus, Block (NYSE:XYZ) announced it would lay off around 40% of its staff, adding to sector-wide AI disruption worries.

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Emma Newbery has positions in Nvidia and Zscaler. The Motley Fool has positions in and recommends Block, Netflix, Nvidia, Warner Bros. Discovery, and Zscaler. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.