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Markets Slide as AI Jitters, Hot Inflation and Iran Risk Jolt Investors

A hotter U.S. producer-price reading reinforced expectations that Federal Reserve rate cuts will wait.

Overview

  • U.S. stocks fell Friday, with the S&P 500 down 0.4%, the Dow off 1.1% and the Nasdaq 0.9% lower, as Wall Street closed its second losing month in 10.
  • Nvidia shares extended losses after a stronger-than-expected quarter and upbeat outlook, pressuring chipmakers as investors questioned lofty valuations and AI capex durability.
  • Block said it will cut over 4,000 jobs—nearly half its workforce—to embed AI across operations, sending the stock sharply higher and underscoring AI-driven corporate restructuring.
  • Oil prices jumped roughly 3% as tensions over U.S.–Iran negotiations kept conflict risk elevated, even after Oman reported “significant progress” and plans for technical talks next week.
  • Indian equities weakened, capping a third monthly decline, with the IT index plunging about 19.5% in February, FIIs turning net sellers and DIIs stepping in as net buyers.