Market Wobbles & AI Fantasies

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Right, so the stock market had a bit of a wobble today. The S&P 500 (^GSPC 0.43%) dipped 0.43% to 6,878.88, which, if you think about it, is a surprisingly precise number for something so… ephemeral. February, as a whole, is shaping up to be a bit of a downer – 1.43% off, making it the worst month in nearly a year. The Nasdaq Composite (^IXIC 0.92%) wasn’t feeling much better, sliding 0.92% to 22,668.21, and the Dow Jones Industrial Average (^DJI 1.05%) took a 1.05% tumble to 48,977.92. It’s all rather a lot of numbers, isn’t it? And what do they mean? Well, apparently, inflation and a healthy dose of anxiety about artificial intelligence are to blame.

A Few Movers and Shakers

Let’s start with Nvidia (NVDA 4.43%). It’s had a bit of a post-earnings stumble, and is now, remarkably, down for 2026. That’s a long way off, of course, but it highlights the rather frenzied enthusiasm that’s been surrounding AI stocks. Meanwhile, Dell (DELL +21.85%) had a rather good day, soaring 21.93% to $148.08. Investors seem to have liked the sound of their growth forecast, which is always encouraging.

Ambarella (AMBA 15.12%) took a bit of a beating – down over 18% despite posting positive earnings. It’s a curious thing, isn’t it, how markets can sometimes seem to reward bad news and punish good? And Zscaler (ZS 12.27%) erased yesterday’s gains, despite beating analyst expectations. Apparently, billings concerns are the issue. It’s a bit like running a marathon and being disqualified for having slightly the wrong shade of running shorts.

The saga of Warner Bros. Discovery (WBD 2.24%) and Paramount Skydance (PSKY +20.84%) seems to be nearing a conclusion, assuming the regulators give it the thumbs-up. Paramount Skydance is reportedly willing to shell out around $110 billion. And, rather surprisingly, Netflix (NFLX +14.03%) also gained after pulling out of the deal. It’s all a bit convoluted, isn’t it? A bit like a particularly complicated game of chess played with real money.

What Does It All Signify?

Today’s Producer Price Index (PPI) data, it turns out, wasn’t particularly helpful. Wholesale prices jumped 0.8% in January – more than anyone expected. This complicates things for the Federal Reserve, potentially delaying any interest rate cuts. Add to that ongoing worries about private credit, the aforementioned AI bubble, and a bit of geopolitical tension, and you have a recipe for market jitters.

Financial stocks, in particular, have been feeling the strain. The collapse of Market Financial Solutions, a U.K. mortgage lender, has sparked contagion fears. And Block (XYZ +16.96%) announced it’s laying off around 40% of its staff, adding to concerns about disruption in the sector. It’s a reminder, perhaps, that even the most innovative companies aren’t immune to the forces of economic reality. One has to wonder, frankly, if we’re building castles on foundations of sand, fueled by algorithms and wishful thinking.

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2026-02-28 01:33