{"id":6658,"date":"2026-02-27T16:53:38","date_gmt":"2026-02-27T16:53:38","guid":{"rendered":"https:\/\/foreignnewstoday.com\/?p=6658"},"modified":"2026-02-27T16:53:38","modified_gmt":"2026-02-27T16:53:38","slug":"dow-tumbles-500-points-as-growing-ai-anxiety-hot-inflation-rattle-wall-street","status":"publish","type":"post","link":"https:\/\/foreignnewstoday.com\/?p=6658","title":{"rendered":"Dow tumbles 500 points as growing AI anxiety, hot inflation rattle Wall Street"},"content":{"rendered":"<p><br \/>\n<br \/><\/p>\n<div>\n<p>Wall Street\u2019s main indexes tumbled on Friday as <a href=\"https:\/\/nypost.com\/2026\/02\/23\/business\/us-stocks-drop-amid-uncertainty-over-trumps-tariff-plans\/\">AI anxiety<\/a> hammered technology\u00a0stocks, with the Nasdaq\u00a0and the S&amp;P 500 on\u00a0track for\u00a0their steepest\u00a0monthly drop since March 2025, while hotter-than-expected inflation data also hit sentiment.<\/p>\n<p>Technology shares faced selling pressure this month as concerns over high valuations and the uncertain payoff from Big Tech\u2019s massive AI spending grew.<\/p>\n<p>In midday trading, the Dow Jones Industrial Average plunged nearly 500 points, or 1%, to 49,011. The S&amp;P 500\u00a0lost 0.6%, and the Nasdaq dropped or 0.7%.<\/p>\n<figure class=\"nyp-slideshow-modal-image wp-block-image aligncenter size-large\"><figcaption>The Nasdaq\u00a0and the S&amp;P 500 are on\u00a0track for\u00a0their steepest\u00a0monthly drop in nearly a year. <span class=\"credit\">AFP via Getty Images<\/span><\/figcaption><\/figure>\n<p>If losses hold, the Dow is on track to snap a nine-month winning streak.<\/p>\n<p><a href=\"https:\/\/nypost.com\/2026\/02\/26\/business\/small-us-businesses-gear-up-for-tariff-fight-after-supreme-court-rules-against-trump\/\">Tariff ambiguity<\/a> also stoked volatility after the Supreme Court last week voided most of the duties President Trump had imposed in 2025. <\/p>\n<p>In response, Trump announced a temporary global tariff of 10% that came into effect on Tuesday.<\/p>\n<aside class=\"single__inline-module aligncenter wp-block-nypost-editor-primary-tag\">\n<\/aside>\n<p>Nvidia\u00a0slid 2% after\u00a0plunging more\u00a0than 5% in the previous session despite\u00a0<a href=\"https:\/\/nypost.com\/2026\/02\/25\/business\/chip-titan-nvidia-posts-record-68b-in-sales-in-latest-quarter-despite-ai-bubble-worries\/\">strong earnings<\/a>, a sign that risk sentiment for all things AI remained shaky.<\/p>\n<p>\u201cThere are a lot of questions around AI and the impact of AI disruption in different industries\u2026 (and)\u00a0the future of tech and, specifically US tech,\u201d said Anthi Tsouvali, multi-asset strategist at UBS Global Wealth Management.<\/p>\n<p>\u201cThere is definitely a rotation to companies that tend to be a little more traditional\u2026 they don\u2019t have a high exposure to IT and of course, in more defensive parts of the market.\u201d<\/p>\n<figure class=\"nyp-slideshow-modal-image wp-block-image aligncenter size-large\"><figcaption class=\"wp-element-caption\"> <span class=\"credit\">REUTERS<\/span><\/figcaption><\/figure>\n<p>Risk appetite also took a hit after data showed US producer prices\u00a0<a href=\"https:\/\/www.reutersconnect.com\/all?search=all%3AP:5040186364&amp;linkedFromStory=true\" target=\"_blank\" rel=\"noreferrer noopener\">increased<\/a>\u00a0more than expected in January, suggesting inflation could pick up in the months ahead.<\/p>\n<p>Earlier in the day, brokerage UBS said it had cut its\u00a0recommended\u00a0allocation to US equities to neutral, citing the relatively lower sensitivity of US corporate earnings to global growth and high valuations, among other reasons.<\/p>\n<p>Zscaler\u00a0plunged 14% after the cloud security firm reported a\u00a0<a href=\"https:\/\/www.reutersconnect.com\/all?search=all%3AL4N3ZN05N&amp;linkedFromStory=true\" target=\"_blank\" rel=\"noreferrer noopener\">wider net loss<\/a>\u00a0in the second quarter. <\/p>\n<figure class=\"nyp-slideshow-modal-image wp-block-image aligncenter size-large\"><figcaption>Producer prices, which measure inflation at the wholesale level,\u00a0increased\u00a0more than expected in January, suggesting inflation could pick up in the months ahead. <span class=\"credit\">REUTERS<\/span><\/figcaption><\/figure>\n<p>Software shares\u00a0and several industries\u00a0were rocked earlier this year\u00a0too, on\u00a0fears of industry wide AI-driven disruptions.<\/p>\n<p>Netflix\u00a0added 9% as investors cheered its decision to\u00a0<a href=\"https:\/\/nypost.com\/2026\/02\/26\/media\/paramount-skydance-victory-in-warner-bros-discovery-bidding-war-came-after-failed-netflix-exec-visit-to-win-over-white-house\/\">exit the fight<\/a>\u00a0for Warner Bros. Discovery, which dropped 2%. Paramount Skydance\u00a0rose 4.7% after winning the race for some of the world\u2019s most prized TV and film assets.<\/p>\n<p>Jack Dorsey\u2019s Block\u00a0surged 16% after the payments firm said it would <a href=\"https:\/\/nypost.com\/2026\/02\/26\/business\/jack-dorseys-block-to-slash-4000-jobs-as-square-owner-sounds-alarm-on-ai\/\">cut over 4,000 jobs,\u00a0nearly half\u00a0its workforce<\/a>, as part of an overhaul to embed\u00a0AI across\u00a0operations.<\/p>\n<p>Dell\u00a0climbed 16.6%\u00a0after the PC-maker said it expects revenue from its key AI-optimized servers business to\u00a0double\u00a0in fiscal year 2027 and promised to return more cash to shareholders.<\/p>\n<\/p><\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/nypost.com\/2026\/02\/27\/business\/dow-tumbles-500-points-as-growing-ai-anxiety-hot-inflation-rattle-wall-street\/\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Wall Street\u2019s main indexes tumbled on Friday as AI anxiety hammered technology\u00a0stocks, with the Nasdaq\u00a0and the S&amp;P 500 on\u00a0track for\u00a0their steepest\u00a0monthly drop since March 2025, while&hellip;<\/p>\n","protected":false},"author":1,"featured_media":6659,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[40],"tags":[],"class_list":["post-6658","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/foreignnewstoday.com\/index.php?rest_route=\/wp\/v2\/posts\/6658","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/foreignnewstoday.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/foreignnewstoday.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/foreignnewstoday.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/foreignnewstoday.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6658"}],"version-history":[{"count":0,"href":"https:\/\/foreignnewstoday.com\/index.php?rest_route=\/wp\/v2\/posts\/6658\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/foreignnewstoday.com\/index.php?rest_route=\/wp\/v2\/media\/6659"}],"wp:attachment":[{"href":"https:\/\/foreignnewstoday.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6658"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/foreignnewstoday.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6658"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/foreignnewstoday.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6658"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}