The S&P 500 fell 0.44%, while the Nasdaq declined 0.95%. The Dow Jones Industrial Average dropped 1.27%. The MSCI EAFE Index, which tracks developed overseas stock markets, rose 1.22%.1,2
AI Disruption
Markets opened the week on a cautious note as concerns about AI-driven disruption rippled across multiple sectors. On Monday, a widely circulated research report warned that advances in artificial intelligence could have sweeping economic implications, including potential effects on employment levels.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.6Economic Data To Watch
Monday: PMI—Manufacturing. ISM Manufacturing. Auto Sales.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.
Upcoming Earnings Reports
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.
Footnotes And Sources1. WSJ.com, February 27, 2026
2. Investing.com, February 27, 2026
3. CNBC.com, February 23, 2026
4. CNBC.com, February 25, 2026
5. WSJ.com, February 27, 2026
6. WSJ.com, February 27, 2026
Source: YCharts.com, February 28, 2026. Weekly performance is measured from Monday, February 23, to Friday, February 27.TR = total return for the index, which includes any dividends as well as any other cash distributions during the period.Treasury note yield is expressed in basis points.