Wall Street Dips on AI, Fed, and Credit Concerns

Wall Street faced pressure on Friday, with indices closing February in negative territory. Concerns about artificial intelligence (AI), the Federal Reserve's (Fed) outlook, and credit markets negatively impacted sentiment.

The S&P 500 and Nasdaq recorded their worst monthly performances since March 2025, with losses exceeding 1% and 3%, respectively. The Dow Jones saw a smaller decline of 0.2%.

An increase in Producer Price Index (PPI) weighed on sentiment, suggesting persistent inflationary pressures. Jack Dorsey's fintech company, Block, announced layoffs, fueling fears about the impact of AI on the labor market.

In the banking sector, the collapse of British company Market Financial Solutions Ltd raised concerns about credit standards. The KBW Bank Index recorded a significant drop.

In corporate news, Netflix rose after withdrawing from the Warner Bros. Discovery bid. Energy stocks strengthened due to rising oil prices.