PPI Rises 0.5% Over Forecast, S&P 500 Futures Slide 0.9%
U.S. producer prices rose 0.5% in January versus a 0.3% forecast and core PPI climbed 0.8%, both exceeding economist expectations. S&P 500 futures fell 0.9% and Dow futures dropped 1.1% as tech and AI-related stocks extended declines, marking the Nasdaq Composite's worst monthly slide since last March.
1. Producer Price Surge
U.S. producer prices increased 0.5% in January, outpacing the 0.3% forecast, while core PPI jumped 0.8% on upticks in retailer and wholesaler profit margins.
2. Futures Slide After Inflation Data
S&P 500 futures fell 0.9% and Dow futures dropped 1.1% immediately after the PPI release, reflecting heightened investor concern over persistent inflationary pressures.
3. Tech and AI Stocks Under Pressure
Nvidia extended a recent slide with a 1% decline, and Amazon along with other AI-linked names also fell, dragging on broader equity futures.
4. Monthly Market Performance
The Nasdaq Composite is on track for a 2.5% February loss, its worst since last March, while the S&P 500 is set for a 0.4% drop and the Dow for a 1.2% gain.