Stock Market Today: Dow Sinks On Hot Inflation; Nvidia Plunges On OpenAI Deal (Live Coverage)

The Dow Jones Industrial Average and other major stock indexes slumped Friday, although selling intensity abated somewhat at the closing bell. Indexes ended the week and the month on a sour note after a jump in wholesale prices stoked fears of sticky inflation. Nvidia (NVDA) stock fell amid an OpenAI deal while CoreWeave (CRWV) plunged on the stock market today.

The Dow dropped 1.1%, or 521 points, while the S&P 500 declined 0.4%. The tech-heavy Nasdaq composite slumped 0.9%. Small caps took the hardest hit, driving the Russell 2000 down 1.7% to close in on a test of its key 50-day moving average.

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Despite Friday’s sell-off, the Dow edged 0.2% higher for the month while the S&P 500 fell 0.9% in February. The Nasdaq’s severe underperformance amid volatility resulted in a loss of 3.4% for the month.

Volume was higher on both the New York Stock Exchange and the Nasdaq compared with the same time Thursday. Decliners controlled the action, outnumbering advancers by 3-to-2 on the NYSE and 2-to-1 on the Nasdaq.

The yield on the benchmark 10-year Treasury note fell seven basis points to 3.95%. Crude oil rose more than 3% near $67.25 a barrel.

Major Indexes Mask Market Strength; S&P 500’s Top Stock Setting Up

3:56 p.m. ET

Technology and Finance Stocks Routed

The S&P 500’s financials and technology sectors fell the most, losing more than 2% each. Elsewhere among the benchmark’s remaining nine sectors, consumer discretionary slipped. Gainers were paced by the energy and health groups as they rose nearly 2%.

Among Dow components, financial stocks fell hard along with tech leaders. American Express (AXP) and Goldman Sachs (GS) plunged more than 7% and JPMorgan Chase (JPM) fell nearly 3%.

Nvidia, Apple (AAPL), Salesforce (CRM) and Microsoft (MSFT) were in the red. But health care stocks fared well, with Merck (MRK) (IBD) leading with a 4% gain.

3:07 p.m. ET

Stock Market Today: Dell Soars

Dell (DELL) soared more than 21% after its fourth-quarter results. Earnings of $3.89 a share topped analyst estimates of $3.53 while sales also beat views of $31.7 billion, coming in at $33.4 billion.

The company also posted a strong outlook for the current quarter with $2.90 in earnings per share and sales of $35 billion, beating analyst forecasts, and said it was entering fiscal 2027 with a record backlog for its artificial intelligence servers.

Shares vaulted, clearing their 50-and 200-day moving averages. The stock was on pace for its largest percentage increase since March 1, 2024, when it gained 31.62%, according to Dow Jones Market Data.

2.11 p.m. ET

Nvidia Falls As OpenAI Completes $110 Billion Round

Nvidia was under pressure after OpenAI announced that it had completed a funding round, raising $110 billion. Key investors include SoftBank (SFTBY) and Nvidia, both of which have invested $30 billion each, and Amazon (AMZN), which took a $50 billon stake in the ChatGPT startup.

Nvidia fell more than 3%, extending an earnings sell-off on Thursday. Amazon nudged higher while SoftBank edged lower.

The U.S. government’s delayed January Producer Price Index report showed wholesale prices rising more than economists anticipated. The stock market over the past month has been “worried about AI disruption and its impact on the labor market” but the inflation data caught Wall Street’s attention, Chris Zaccarelli, chief investment officer at Northlight Asset Management, said in a note.

The PPI report “could give the Fed another reason to be more patient with rate cuts and wait until the second half of the year before making any changes,” he said.

1:46 p.m. ET

Rocket Lab Dives

Rocket Lab (RKLB) plunged 10% after the company said it was delaying the launch of its Neutron rocket. It also projected a first-quarter adjusted EBITDA loss between $21 million and $27 million, wider than the $19 million loss Wall Street had projected.

Shares fell further below their 50-day moving average and back below a buy point of 65.18. The move came after a gain of 53%, triggering the round-trip sell rule.

Rocket Lab lost 9 cents per share in its fourth quarter, less than the 10 cents per share analysts had estimated. Sales of $180 million topped views of $177 million.

12:29 p.m. ET

Financials Take It On The Chin

Out of the S&P’s 11 sectors, financials took the hardest hit, with the Financial Select Sector SPDR (XLF) exchange traded fund down nearly 3%. Investor’s Business Daily’s super regional bank group was one of the day’s worst performers, down nearly 4% as names like PNC Financial (PNC), Fifth Third Bancorp (FITB) and Regions Financial (RF) showed losses of 5% to 6%.

In the biotech group, Vertex Pharmaceuticals (VRTX) bucked the trend in the Nasdaq 100, up more than 3%. It moved back into a buy zone from a 487.52 entry on the heels of a strong earnings report earlier in the month. Daiwa Securities on Thursday maintained a buy rating and lifted the biotech’s price target to 561 from 500.

Fellow biotech Gilead Sciences (GILD) jumped nearly 4% and reversed higher above its 21-day exponential moving average. Mostly known for its HIV drug franchise, Gilead also has a growing oncology pipeline.

Walmart (WMT) also outperformed in the Nasdaq 100, up nearly 3%. It’s also been finding support at its 21-day line repeatedly after breaking out over a 109.58 buy point in late November.

11:28 a.m. ET

Block Surges On Earnings, AI Layoffs

In earnings news, Block (XYZ) surged more than 13% after the company reported earnings and said it was laying off about 4,000 workers, or about 40% of its workforce, due to efficiency gains from artificial intelligence.

After lagging badly Thursday, IBD’s fiber-optic group was one of the day’s top performers, up 1.4%. Several oil and gas-related groups also outperformed, with West Texas Intermediate crude oil futures up 2.7% near $67 a barrel.

Oil-and-gas producer** Range Resources** (RRC) added nearly 4% and rose near the top of a cup base with a 40.88 buy point.

Two copper producers outperformed in the MarketSurge Growth 250. Southern Copper (SCCO) rose 3% to an all-time high, while smaller competitor Ero Copper (ERO) added nearly 1% ahead of next week’s earnings report. Results are due Thursday after the close.

Several gold stocks outperformed again in the IBD 50, with gold futures up more than 1% near $5,260 an ounce. Newmont (NEM) gapped up and rose nearly 3%, close to an all-time high. Kinross Gold (KGC) picked up more than 1% and also closed in on an all-time high.

10:30 a.m. ET

American Express And Salesforce Get Hit

American Express (AXP) and Salesforce (CRM) took early hits in the Dow Jones industrials, down nearly 7% and almost 4%, respectively.

In the software sector, Zscaler (ZS), Workday (WDAY) and Atlassian (TEAM) were early laggards in the Nasdaq 100. Zscaler plunged more than 14% after reporting earnings, while losses in Workday and Atlassian ranged from 5% to 7%.

The 10-year Treasury yield fell to 3.98%. Oil prices jumped nearly 3% to just over $67 a barrel. Also, bitcoin pulled back to near $66,100.

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In earnings, news, fiber optic leader Applied Optoelectronics (AAOL) soared more than 44% after the company reported a 50% jump in revenue and predicted first-quarter revenue that beat analyst views. The fiber optic group was one of the worst performers in Investor’s Business Daily’s database Thursday, down more than 5%.

Stock Market Today: CoreWeave Tumbles, Dell Soars

Artificial intelligence chip stock CoreWeave plummeted nearly 18% despite reporting another quarter of triple-digit revenue growth. The problem was adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA. That figure came in at $898 million, which was just below the $929 million estimate from analysts.

Investors were also spooked by news that CoreWeave plans to double its spending this year to $30 billion to $35 billion. It also predicted first-quarter revenue that came in just below estimates.

Conversely, Dell (DELL) gapped up and soared nearly 18% after the company reported strong earnings and said revenue from its AI server business will double in its current fiscal year, which is 2027, to around $50 billion.

Rocket Lab (RKLB) plunged more than 6%. Fourth-quarter results were better than expected and its forecast was strong. But the company once again delayed the launch of its highly anticipated Neutron rocket to the fourth quarter of this year. The rocket will eventually compete with Space X’s Falcon 9 Rocket.

9:46 a.m. ET

Nasdaq 100 Winners, Losers: Netflix, Workday

Within the Nasdaq 100, Netflix (NFLX) surged more than 8% after Warner Bros. Discovery (WBD) deemed Paramount Skydance’s (PSKY) latest offer to be superior than Netflix’s. Netflix declined to match or beat Paramount’s revised offer. Warner fell 2% while Paramount gained roughly 2%

Meanwhile, Workday (WDAY) and Atlassian (TEAM) tumbled 6.5% and 5.5%, respectively, in morning trading.

9:11 a.m. ET

Dow Jones Movers: Chevron, Nvidia

Inside the Dow Jones Industrial Average, Chevron (CVX) and Verizon Communications (VZ) climbed 1.5% and 0.6%, respectively, shrugging off the market’s early morning weakness.

On the downside, Microsoft (MSFT) and Nvidia (NVDA) declined around 2% each in premarket trading. Nvidia stock threatened to add to Thursday’s 5.5% dive and fall further below its 50-day moving average.

8:49 a.m. ET

Stock Market Today: Hot Inflation Data

Early Friday, the Labor Department said the producer price index rose 0.5% in January, with an annual increase of 2.9%, both hotter than expected. The core PPI, which excludes food and energy, climbed 0.8% on the month and 3.6% year over year.

January was expected to show that the PPI rose 0.3% on the month, with an annual increase of 2.8%, according to estimates from Econoday.

7:59 a.m. ET

Nvidia Partner CoreWeave Plunges On Earnings

Nvidia partner CoreWeave plunged 12% premarket Friday after the company reported a bigger-than-expected loss while revenue slightly topped estimates.

In the fourth quarter, CoreWeave said it lost 89 cents per share versus a 34-cent loss a year earlier. Revenue jumped 110% to $1.57 billion. Wall Street analysts predicted a 67-cent loss for CoreWeave stock on revenue of $1.54 billion.

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Other Earnings Movers: Block, Rocket Lab

Early Friday, Block (XYZ), Intuit (INTU), Applied Optoelectronics (AAOI), Dell (DELL), Rocket Lab (RKLB) and Zscaler (ZS) were big earnings movers.

Block shares soared nearly 20%, while Intuit stock sold off almost 3%. Applied shares leaped more than 17%, as Dell shares surged 12%. Rocket Lab sold off nearly 6%. Finally, Zscaler shares tumbled more than 11% in premarket trading.

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Stock Market Today: Inflation Data

Early Friday, the Labor Department’s producer price index, a measure of wholesale inflation, is on the schedule for 8:30 a.m. ET.

January is expected to show a monthly increase of 0.3%, with an annual increase of 2.8%, according to estimates from Econoday.

**Breakout Watch: Strategic Shift Transforms This IBD 50 AI Play

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_Be sure to follow Scott Lehtonen on X _at @IBD_SLehtonen for more on growth stocks, the Dow Jone__s Industrial Average and the stock market today.

Follow Ken Shreve on X @IBD_KShreve for more stock market analysis and insight.

Please follow VRamakrishnan on X/Twitter for more news on the stock market today.

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