{"id":503676,"date":"2026-02-27T19:37:09","date_gmt":"2026-02-27T19:37:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/503676\/"},"modified":"2026-02-27T19:37:09","modified_gmt":"2026-02-27T19:37:09","slug":"us-stocks-sink-and-oil-prices-rise-as-worries-about-ai-inflation-and-possible-war-hit-wall-street","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/503676\/","title":{"rendered":"US stocks sink and oil prices rise as worries about AI, inflation and possible war hit Wall Street"},"content":{"rendered":"\n

NEW YORK (AP) \u2014 U.S. stocks are sinking Friday as Wall Street gets back to hunting companies<\/a> that could become losers because of the artificial-intelligence<\/a> revolution. A surprisingly discouraging update on inflation<\/a> is also hurting the market, while oil prices climb with worries about tensions between the United States and Iran<\/a>.<\/p>\n

The S&P 500 fell 0.8% and is staggering toward the finish of what would be just its second losing month in the last 10. The Dow Jones Industrial Average was down 630 points, or 1.3%, as of 1:58 p.m. Eastern time, and the Nasdaq composite was 1.3% lower.<\/p>\n

The losses came as investors returned to knocking down software companies and others whose businesses they suspect could get supplanted by AI-powered competitors.<\/p>\n

Block, the company behind Cash App, Square and other businesses, gave a potential signal of what AI could do<\/a> after CEO Jack Dorsey said he was cutting its workforce by nearly half. That\u2019s even though he said 2025 was a strong year for the company, which is sending more cash to shareholders through stock buybacks.<\/p>\n

\u201cIntelligence tools have changed what it means to build and run a company,\u201d Dorsey said in a letter to investors while announcing Block\u2019s latest profit results. \u201cWe\u2019re already seeing it internally. A significantly smaller team, using the tools we\u2019re building, can do more and do it better.\u201d<\/p>\n

The co-founder of Twitter also said, \u201cI don\u2019t think we\u2019re early to this realization. I think most companies are late. Within the next year, I believe the majority of companies will reach the same conclusion and make similar structural changes.\u201d<\/p>\n

Block is cutting more than 4,000 jobs from its workforce of over 10,000. Its stock jumped 14.1%.<\/p>\n

Capable AI tools that can replace humans could also replace entire companies, or at least eat away at their profit margins. Fears about AI disruption have been causing sudden and swift sell-offs for stocks seen as potentially under threat, rolling through industries as different as trucking logistics and legal services.<\/p>\n

Salesforce, whose platform helps customers manage their relationships with clients, fell 2.2%. It gave back more than half of its 4% gain from the day before after reporting a better profit than analysts expected.<\/p>\n

A widely followed ETF tracking the software industry, meanwhile, sank 1.8% to bring its loss for the year so far to 23.3%.<\/p>\n

The pain has also filtered out to private-equity companies that have lent money to software companies, which need to withstand the AI threat to keep repaying their debt. Blue Apollo Global Management dropped 8.5%, and Ares Management sank 6.2% for two of the biggest losses in the S&P 500.<\/p>\n

Even the companies currently seeing their revenue and profit soar because of AI-related demand are weakening. Nvidia fell 3.5% and was the heaviest weight on the U.S. stock market, a day after dropping to its worst loss since last spring. That’s even though it reported a better profit than analysts expected and forecast more in revenue for the current quarter.<\/p>\n

Rival chip companies also fell. Worries are hurting such companies not only about whether their stock prices rose too high in recent years but also whether the huge spending driving their growth can continue. Can big spenders like Amazon and Alphabet make back all their billions of dollars in AI investments through higher productivity and profits in the future?<\/p>\n

On the winning side of Wall Street was Netflix, which climbed 12.5% after walking away from its bid<\/a> to buy Warner Bros. Discovery\u2019s studio and streaming business. That put Skydance-owned Paramount in a position to take over its Hollywood rival.<\/p>\n

Paramount Skydance shares jumped 22.9%, while Warner Bros. Discovery fell 1.9%.<\/p>\n

Some of the strongest action in financial markets was for oil, where the price for a barrel of benchmark U.S. crude oil rose 2.5% to $66.82. It’s the latest swing in a market unsettled by tensions between the United States and Iran<\/a> over Iran\u2019s nuclear program<\/a>.<\/p>\n

The U.S. military has already gathered a massive fleet of aircraft and warships<\/a> in the Middle East, and a conflict could disrupt the global flow of oil and drive prices higher.<\/p>\n

Brent crude, the international standard, rose 2.6% to $72.68 per barrel.<\/p>\n

Also hurting the broad market was a report showing that inflation at the U.S. wholesale level was at 2.9% last month, much higher than the 1.6% that economists expected.<\/p>\n

The number was so much worse than expected that it could help persuade the Federal Reserve to hold off longer on its cuts<\/a> to interest rates. Lower rates would give the economy and prices for investments a boost, but they risk worsening inflation at the same time.<\/p>\n

In the bond market, the yield on the 10-year Treasury was at 3.96%. It briefly swiveled higher following the inflation report, but it\u2019s down from its 4.02% level late Thursday. Treasury yields often fall when nervousness is high and investors are moving into investments that are considered safer.<\/p>\n

ln stock markets abroad, indexes were mixed in Europe and Asia. South Korea\u2019s Kospi fell 1% from its latest record, and the United Kingdom’s FTSE 100 rose 0.6% in two of the world\u2019s larger moves.<\/p>\n

___<\/p>\n

AP Business Writers Matt Ott and Elaine Kurtenbach contributed.<\/p>\n

Stan Choe, The Associated Press<\/p>\n","protected":false},"excerpt":{"rendered":"NEW YORK (AP) \u2014 U.S. stocks are sinking Friday as Wall Street gets back to hunting companies that…\n","protected":false},"author":2,"featured_media":503677,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[62,276,277,49,48,200544,9891,135483,186919,145639,121,61,195948,6495],"class_list":["post-503676","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-ca","tag-canada","tag-jack-dorsey","tag-oil-prices","tag-profit-margins","tag-software-companies","tag-stock-buybacks","tag-stock-market","tag-technology","tag-the-united-states-and-iran","tag-wall-street"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/503676","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=503676"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/503676\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/503677"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=503676"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=503676"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=503676"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}