0.7% PPI Spike Drives S&P 500 Lower, Duolingo Shares Slide 18%
S&P 500 closed lower after a hot February PPI reading of 0.7% MoM rattled markets, dragging the Nasdaq and Dow. Duolingo shares plunged 18% after weaker-than-expected 2026 revenue guidance, hedge funds boosted bullish oil bets to a 22-month high on Iran risks, and an analyst downgraded Paramount post-Warner deal.
1. Hot PPI Sparks Market Sell-Off
February's Producer Price Index rose 0.7% month-over-month, exceeding forecasts and triggering a broad sell-off that sent the S&P 500, Nasdaq and Dow lower at the close.
2. Duolingo Q4 Beat Marred by Soft 2026 Outlook
Duolingo delivered adjusted Q4 EPS of $0.84 on $282.9 million in revenue, beating estimates, but its 2026 revenue guidance of $1.20–1.22 billion fell short of the $1.26 billion consensus, leading to an 18% share drop.
3. Hedge Funds Ramp Up Oil Bulls
Funds increased net long positions in crude futures to a 22-month high, driven by concerns over potential supply disruptions linked to Iran tensions.
4. Paramount Rating Under Pressure Post-Warner Deal
An S&P analyst marked Paramount's credit rating as strained following its merger with Warner, highlighting elevated debt levels and integration risks that may impact financial flexibility.