The Dow plummeted more than 500 points Friday as financial and tech stocks were hit hard by a handful of persistent investor worries.
The blue-chip Dow slumped 1%, to 48,977.922. For the week, the index was down 1.3%, its biggest weekly drop since November.
The S&P 500 lost 0.4%, and the Nasdaq dropped or 0.9%. The tech-heavy Nasdaq slid 3.4% for the month, it biggest decline since March 2025.
The Nasdaq and the S&P 500 had their steepest monthly drop in nearly a year.AFP via Getty Images
“To wrap up the month of February, we were reminded there are still some cracks out there,” said Ryan Detrick, chief market strategist at Carson Group in Omaha, Nebraska. “Adding to the day’s weakness was the hotter inflation data, potentially pushing back on the idea of a dovish Fed later this year.”
“It’s been a rough go in February, but corporate America is looking at over a 14% gain in earnings in the fourth quarter,” Detrick added. “The reality is that earnings drive long-term stock gains and this was a very impressive earnings season.”
Financial stocks slid after worries of contagion in the sector after reports that Barclays, Jefferies JEF.N, Wells Fargo and other banks face potential losses related to the collapse of UK mortgage provider Market Financial Solutions Ltd., amid broader concerns about lending standards. Wells Fargo, Jefferies and US-listed shares of Barclays ended sharply lower.
