Week In Perspective | AI Report, Inflation Provoke Rocky Week [02-March-26]

Updated: 02-March-2026

The Week on Wall Street

Stocks fell last week amid concerns about artificial intelligence (AI) and a warmer-than-expected reading of wholesale inflation.
 
The Standard & Poor’s 500 Index fell 0.44 percent, while the Nasdaq Composite Index declined 0.95 percent. The Dow Jones Industrial Average dropped 1.27 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, rose 1.22 percent.^1,2

AI Disruption

Markets began the week under pressure as investors’ fears of AI disruption spread to a wide variety of industries. On Monday, a new research report circulated across trading floors, suggesting that AI could influence the broader economy and affect the unemployment rate.³

Stocks bounced back over the next two sessions as investors saw opportunity in an oversold AI trade. The relief rally included software and cybersecurity stocks, as well as AI-related technology shares more broadly. The rally gained momentum, spurred on by a prominent AI chipmaker, as investors eagerly awaited its Q4 corporate report. Investors pushed all three major averages higher over both days.⁴

But markets resumed their decline over the final two trading days of the week. The Dow Industrials fell more than the other two major averages, both on Friday and for the week. The Dow’s weakness was notable given that it still leads the S&P 500 and Nasdaq year to date.⁵

Wholesale Inflation Rises

Friday’s shutdown-delayed Producer Price Index (PPI) report showed that wholesale inflation rose 0.5 percent in January over the prior month. Economists expected prices to rise by 0.3 percent.⁶

PPI measures the costs for businesses, and some fear that if it costs businesses more to make a good or deliver a service, those costs might get passed on to consumers. Investor concerns often rise whenever an inflation report shows prices rising faster than the Fed’s 2 percent target. 

This Week: Key Economic Data

Monday: PMI—Manufacturing. ISM Manufacturing. Auto Sales.

Tuesday: Fed Presidents John Williams (New York) and Neel Kashkari (Minneapolis) speak.

Wednesday: ADP Employment Report. PMI—Services. ISM Services. Fed Beige Book.

Thursday: Weekly Jobless Claims. Q4 Productivity. Import Prices.

Friday: Federal Employment Report. Cleveland Fed President Beth Hammack speaks.

^{Source: Investors Business Daily - Econoday economic calendar; February 27, 2026. The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to provide accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts are also subject to revision.}

This Week: Companies Reporting Earnings

Tuesday: CrowdStrike (CRWD)

Wednesday: Broadcom Inc. (AVGO)

Thursday: Costco Wholesale Corporation (COST), Marvell Technology, Inc. (MRVL)

^{Source: Zacks, February 27, 2026. Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your goals, time horizon, and risk tolerance. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule their earnings reports without notice.}

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