Stocks fell sharply on Friday after January’s producer price index came in hotter than expected, signaling persistent inflation.

The Dow dropped 616 points (1.2%), the S&P 500 fell 0.7%, and the Nasdaq lost 1.2%, continuing a weak February for all major indices.

Tech and software stocks were hit hard, with Zscaler down 13%, CoreWeave down 19%, and Nvidia extending its post-earnings slide.

Financial and private credit-related stocks also fell amid concerns over layoffs, AI spending, and the collapse of UK mortgage provider Market Financial Solutions, CNBC has reported.

Analysts said the strong PPI reading adds uncertainty for the Federal Reserve’s policy decisions and heightens market worries about inflation, labor market stability, and AI-driven disruption.