Stock Market Today, Feb. 27: Inflation and AI Fears Lead to February Slump

By Emma Newbery – Feb 27, 2026 at 5:23PM ESTThe S&P 500 (^GSPC 0.43%) 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 (^IXIC 0.92%) slid 0.92% to 22,668.21 and the Dow Jones Industrial Average (^DJI 1.05%) dropped 1.05% to 48,977.92 as inflation data and AI jitters punished tech and growth stocks. Market moversNvidia (NVDA +0.00%) extended its post-earnings slide and turned negative for 2026, amplifying the AI-linked sell-off. However, Dell (DELL +21.85%) soared 21.93% to close at $148.08 as investors responded positively to its growth forecast.Ambarella (AMBA 15.12%) plunged more than 18% in intraday trading despite positive earnings. Zscaler (ZS 12.27%) erased yesterday’s gains. The firm beat analyst expectations, but sank on billings concerns.The bidding war for Warner Bros. Discovery (WBD 2.24%) seems to have reached a conclusion, depending on regulatory approval. Paramount Skydance (PSKY +20.93%) gained over 20% after it agreed to pay around $110 billion to acquire the Hollywood brand. Netflix (NFLX +14.03%) also gained after pulling out of the deal.What this means for investorsToday’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 (XYZ +16.96%) announced it would lay off around 40% of its staff, adding to sector-wide AI disruption worries.Read NextFeb 26, 2026 •By Emma NewberyStock Market Today, Feb. 26: Nasdaq and S&P 500 Stumble on Fading Nvidia OptimismFeb 26, 2026 •By Katie BrockmanWant a $2 Million Investment Portfolio While Barely Lifting a Finger? Here's What You'd Need to Invest Each Month.Feb 26, 2026 •By Trevor JennewineWall Street Says the Stock Market's Return in 2026 Will Crush the 30-Year AverageFeb 25, 2026 •By Emma NewberyStock Market Today, Feb. 25: Nasdaq Gains 1.3% As Nvidia Reignites AI OptimismFeb 25, 2026 •By Katie BrockmanShould You Sell Your Stocks Right Now? Here's What Warren Buffett Recommends.Feb 25, 2026 •By Trevor JennewineThe Stock Market Could Crash in an AI Doomsday Scenario, According to Analysts.

Wall Street Is Panicking.About the AuthorEmma Newberry is a contributing Motley Fool cryptocurrency analyst covering digital currencies and blockchain trends. She previously wrote for Motley Fool Money (formerly The Ascent) on personal finance, investing, retirement readiness, and crypto. Earlier in her career, Emma founded an English-language newspaper in Colombia and contributed to Olympic city bid campaigns. She holds a bachelor’s degree in English literature with creative writing from the University of East Anglia in the UK.TMFemmanewberyStocks MentionedS&P 500 IndexSNPINDEX: ^GSPC$6,878.88(-0.43%)-$29.98NASDAQ Composite IndexNASDAQINDEX: ^IXIC$22,668.21(-0.92%)-$210.17Dow Jones Industrial AverageDJINDICES: ^DJI$48,977.92(-1.05%)-$521.28*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.