U.S. Stocks Decline Amid AI Disruption Concerns and Inflation Data
U.S. stock markets declined as investors reacted to potential AI disruptions and higher-than-expected inflation data.
U.S. stock markets declined on Friday, with the S&P 500 falling 0.4% to 6,878.88, the Dow Jones Industrial Average dropping 1.1% to 48,977.92, and the Nasdaq Composite decreasing 0.9% to 22,668.21. Investors expressed concerns over potential disruptions from artificial intelligence (AI) and higher-than-expected inflation data.
Block Inc., led by CEO Jack Dorsey, announced plans to reduce its workforce by nearly half, affecting over 4,000 employees. Dorsey stated that the company is embedding AI throughout its operations and emphasized that the decision was not due to financial trouble but to provide space for growth in the AI era. Following the announcement, Block's stock rose 16.8%.
Nvidia's stock declined 4.2%, continuing its post-earnings slide and turning negative for 2026, amplifying the AI-linked sell-off.
Oil prices increased amid tensions between the United States and Iran. Benchmark U.S. crude rose 2.8% to settle at $67.02 per barrel, while Brent crude increased 2.4% to $72.48 per barrel.
A report indicated that U.S. wholesale inflation was at 2.9% last month, higher than the 1.6% economists expected. This development may influence the Federal Reserve's decisions on interest rates.
In the bond market, the yield on the 10-year Treasury note decreased to 3.96%, down from 4.02% the previous day, as investors sought safer assets amid market uncertainties.