S&P500 and Nasdaq 100: Tech Stocks Lead a Steep Selloff as Hot PPI Hits US Stocks Today

• January PPI significantly exceeded estimates with both headline and core indices beating forecasts, raising concerns the Fed may postpone rate cuts until at least June or potentially cancel them for 2026
• Tech stocks led losses with Nvidia extending its post-earnings decline and major software companies like Salesforce (-4%), Zscaler (-11%), and CoreWeave (-16%) posting significant losses amid concerns over massive OpenAI investments
• Markets have been under pressure throughout February from multiple concerns including AI disruption uncertainty, tariff concerns, and economic slowdown fears, with traders 'selling first and asking questions later'

Market Summary: US Stocks Tumble on Hot Inflation Data

Key Market Movements

US equity markets suffered sharp losses on Friday, February 27, 2026, following hotter-than-expected Producer Price Index (PPI) data. The Dow Jones Industrial Average declined 715 points (-1.5%), the S&P 500 fell 1.1%, and the Nasdaq Composite dropped 1.4%.

Inflation Data

January PPI significantly exceeded expectations, with the services component posting its largest monthly increase since July 2025. Both headline and core indices came in substantially higher than forecasts, raising serious doubts about potential Federal Reserve rate cuts this year and suggesting rates may remain elevated at least until June.

Tech Sector Under Pressure

Technology stocks led the decline for a second consecutive day. Nvidia extended its post-earnings slide, while Amazon also traded lower amid concerns over massive OpenAI investments fueling bearish sentiment in the sector.

The software sector faced particularly severe losses, closing out a difficult February. Salesforce dropped over 4%, Microsoft fell nearly 2%, Zscaler plunged 11% on disappointing guidance, and CoreWeave tumbled 16% following weak forward outlook.

Market Context

The selloff reflects mounting investor concerns spanning multiple fronts: persistent inflation, AI-driven market disruption, tariff uncertainty, and potential economic slowdown. Market participants have adopted a "sell first, ask questions later" approach throughout February, with the hot PPI data confirming fears that inflation remains stubborn and undermining hopes for near-term monetary policy easing.