NEW YORK, Feb. 27 (Xinhua) -- U.S. stocks ended lower on Friday as unexpectedly high wholesale inflation data cooled investor hopes for easing price pressures and reignited concerns over the broader economic outlook.
The Dow Jones Industrial Average fell by 521.28 points, or 1.05 percent, to 48,977.92. The S&P 500 sank 29.98 points, or 0.43 percent, to 6,878.88. The Nasdaq Composite Index shed 210.17 points, or 0.92 percent, to 22,668.21.
Nine of the 11 primary S&P 500 sectors ended in green, with health and energy leading the gainers by going up 1.77 percent and 1.68 percent, respectively. Meanwhile, technology and financials led the laggards by dropping 2.17 percent and 1.99 percent, respectively.
The Bureau of Labor Statistics reported Friday that wholesale prices in the United States rose faster than anticipated in January. The core producer price index (PPI), which excludes volatile food and energy components, increased by a seasonally adjusted 0.8 percent. This figure surpassed the 0.6 percent gain recorded in December and came in well above the consensus estimate of 0.3 percent.
Analysts warn that these pipeline price pressures could compel the Federal Reserve to maintain a cautious stance as it deliberates its next moves regarding interest rates.
Stephen Kolano, chief investment officer at Integrated Partners, noted that the inflation reading appears largely services-driven, suggesting companies may be passing the cost of recent tariffs onto consumers to preserve profit margins.
He added that the PPI report compounds existing market anxieties surrounding stress in the private credit market and the massive capital expenditures associated with artificial intelligence.
Fears regarding artificial intelligence's disruptive potential on the labor market and specific industries also weighed heavily on investor sentiment Friday. These concerns were sharply amplified after fintech company Block announced plans to lay off more than 4,000 employees, effectively eliminating nearly half of its entire workforce.
In major corporate developments, Netflix surged 13.75 percent after the streaming giant officially abandoned its pursuit to acquire Warner Bros. Discovery. The withdrawal cleared the path for Oracle-linked bidder Paramount Skydance to clinch the purchase of the Hollywood studio.
In other notable post-earnings moves, Dell Technologies surged nearly 22 percent, while CoreWeave plummeted 18.51 percent after issuing disappointing quarterly revenue guidance. ■