NEW YORK, New York - A strong Producer Prices Index report Friday undermined U.S. stocks across the board, with all the major indices closing with major losses. The PPI came in much stronger than expected, placing doubt on the potential for further interest rate cuts by the Federal Reserve.
"The Producer Price Index for final demand increased 0.5 percent in January, seasonally adjusted," the U.S. Bureau of Labor Statistics said in a statement Friday. "Final demand prices advanced 0.4 percent in December 2025 and 0.2 percent in November. On an unadjusted basis, the index for final demand rose 2.9 percent for the 12 months ended January 2026."
Friday's capped a volatile week with broad-based selling pressure that pushed all three major indices into negative territory. Rising concerns over inflation and corporate earnings weighed heavily on investor sentiment.
The Dow Jones Industrial Average bore the brunt of the selling Friday, diving 521.28 points to close at 48,977.92. The blue-chip index fell 1.05 percent during the session, fluctuating between a low of 48,678.78 and a high of 49,253.57 on heavy volume of 761.585 million shares.
The Standard and Poor's 500 also retreated, declining 30.00 points, or 0.43 percent, to close at 6,878.86. The broad market index traded within a range of 6,831.74 to 6,882.96 during the day, with trading volume reaching 4.29 billion shares. The index remains well above its 52-week low of 4,835.04 but has pulled back from the peak of 7,002.28 reached earlier in the cycle.
Technology stocks faced particular pressure, dragging the NASDAQ Composite lower by 210.17 points, or 0.92 percent, to finish at 22,668.21. The tech-heavy index saw elevated trading volume of 6.595 billion shares as investors rotated out of growth names amid uncertainty about the interest rate outlook.
Market participants cited a combination of factors for the downturn, including lingering concerns about persistent inflation and its potential impact on central bank policy moving forward. Friday's losses erased earlier weekly gains for some indices, leaving traders cautious heading into the weekend.
Trading volume was above average across major exchanges, suggesting institutional participation in the sell-off rather than mere retail profit-taking. Analysts noted that the NASDAQ's decline was particularly significant given the index's recent outperformance relative to its peers.
The session's losses mark a challenging end to February, with investors now looking ahead to economic data releases scheduled for next week.
U.S. Dollar Wavers in Friday Trading
The U.S. dollar displayed a soft performance against major counterparts on Friday, losing ground against the Swiss franc and commodity-linked currencies while holding steady against sterling in a session characterized by moderate volatility.
The Euro strengthened against the greenback, with the EURUSD pair climbing 0.23 percent to settle at 1.1824. The single currency found support amid shifting expectations for interest rate differentials between the United States and the Eurozone.
The Japanese yen firmed slightly against the dollar. The USDJPY pair dipped 0.05 percent to 156.01, reflecting cautious risk sentiment heading into the weekend.
The British pound edged higher against the dollar, with GBPUSD adding 0.05 percent to last trade at 1.3487. Sterling held its ground despite broader macroeconomic uncertainties, as traders digested recent comments from Bank of England officials regarding the path of inflation.
The most significant mover of the session was the Swiss franc, which made decent gains against the dollar. The USDCHF pair slid 0.68 percent to 0.7680, marking the largest decline among the major pairs as investors sought the traditional safe-haven currency amid ongoing geopolitical jitters.
Commodity-linked currencies posted broad gains. The Australian dollar rose 0.22 percent against its U.S. counterpart, with AUDUSD trading at 0.7119, supported by firmer interest vrate yields. The New Zealand dollar outperformed, rising 0.49 percent to 0.6000, extending its recent rally as dairy prices remained resilient.
The Canadian dollar also strengthened against the greenback. The USDCAD pair fell 0.34 percent to 1.3633, as oil prices stabilized following earlier fluctuations in the week.
Trading volumes were moderate as market participants positioned themselves ahead of the weekend, with focus now turning to upcoming economic data releases scheduled for next week that could provide further direction for currency markets
Global Markets End Week on Mixed Note as Regional Performances Diverge
Global stock markets delivered a mixed performance on Friday to close out the week, with European bourses largely struggling to find momentum while Asian-Pacific indices showed more resilience, buoyed by gains in Hong Kong and Australia.
In London, the FTSE 100 managed to buck the regional trend, closing in positive territory. The UK blue-chip index rose by 63.85 points, or 0.59 percent, settling at 10,910.55. The index traded between a low of 10,845.50 and a high of 10,934.94 during the session.
However, sentiment across the English Channel was more cautious. Germany's DAX P index dipped marginally, losing 4.76 points to close at 25,284.26, a fractional decline of 0.02 percent. In France Friday, the CAC 40 also retreated, falling 40.18 points, or 0.47 percent, to end the day at 8,580.75.
The broader European indices reflected the negative bias. The EURO STOXX 50 I decreased by 23.15 points (0.38 percent) to 6,138.41, while the Euronext 100 Index slipped 2.59 points, a decline of 0.14 percent, finishing at 1,844.83. Belgium's BEL 20 provided a rare bright spot on the continent, adding 4.71 points to close at 5,443.76, a gain of 0.09 percent.
Canadian markets followed the mostly negative trend. TheS&P/TSX Composite Indexfell 161.97 points, a decline of 0.47 percent, closing at 34,339.99 on volume of 495.275 million shares.
In Asia, trading was largely upbeat. The HANG SENG INDEX in Hong Kong led the charge, surging 249.52 points, or 0.95 percent, to end Friday at 26,630.54.
Singapore's STI Index followed suit, climbing 30.69 points (0.62 percent) to 4,995.07. Mainland China's SSE Composite Index also rose, adding 16.25 points (0.39 percent) to close at 4,162.88 on volume of 3.78 billion.
Down Under, Australia's S&P/ASX 200 rose 23.30 points (0.25 percent) to 9,198.60, and the broader ALL ORDINARIES index gained 26.90 points (0.29 percent) to close at 9,435.60. Across the Tasman, the S&P/NZX 50 INDEX GROSS in New Zealand added 52.26 points (0.38 percent) to 13,722.97
However, selling pressure was evident in other parts of the region on Friday. In India the S&P BSE SENSEX suffered the steepest decline, tumbling 961.42 points to 81,287.19, a loss of 1.17 percent. South Korea's KOSPI Composite Index also struggled, dropping 63.14 points, or 1.00 percent, to 6,244.13 on volume of 1.166 million. In Malaysia Friday, the FTSE Bursa Malaysia KLCI fell 24.33 points (1.40 percent) to 1,716.61.
Other Asian markets saw more modest moves. Japan's Nikkei 225 edged up 96.88 points, a gain of 0.16 percent, closing at 58,850.27.
The IDX COMPOSITE in Indonesia managed a fractional gain of 0.22 points, effectively flat at 0.00 percent, to finish at 8,235.49, while Taiwan's TWSE Capitalization Weighted Stock Index rose a marginal 1.42 points (0.00 percent) to 35,414.49.
In other notable movements, the Top 40 USD Net TRI Index in Johannesburg posted the strongest gain of the session, surging 139.98 points, or 1.75 percent.
Most Middle East markets were closed Friday and will reopen on Sunday.
(This report incorporates quotes retrieved with the assistance of artificial intelligence).
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