Here’s what’s happening in the stock market today:
The stock market closed lower today amid hotter-than-expected producer price inflation data and concerns over AI-driven disruptions, capping a volatile February. 📉🔥 Major indices fell over 1% in many sessions, with tech-heavy Nasdaq hit hardest, while select media and AI-related stocks bucked the trend. Futures point to further pressure overnight.
Major Indices Performance 📊
Dow Jones Industrial Average declined around 1% or 483-550 points, settling near 49,499 amid broad selling.
S&P 500 dropped about 1-2%, closing around 5,580-6,908, extending monthly losses.
Nasdaq Composite tumbled 1.2-2.7%, ending near 17,323-22,878, pressured by semis and tech.
Market Movers 🚀
Netflix rallied up to 13% after dropping out of Warner Bros. bidding war, won by Paramount.
Block (SQ) surged 16-27% on aggressive AI overhaul, slashing nearly half its workforce.
Arlo Technologies climbed 21-28%; other gainers included Neurogene (18-30%), KORE Group (79%).
Nvidia fell ~5.5% post-earnings despite beats, amid AI spending doubts; Warner Bros. declined.
Key Events Driving the Market 🗞️
Hot January PPI rose 0.8% core (3.6% YoY), exceeding forecasts and dimming Fed rate cut hopes. 🏦📈
Block's massive layoffs signal AI job shifts across corporate America, boosting its stock but sparking sector fears.
Paramount's win over Netflix in $31/share Warner Bros. deal lifted media intrigue amid consolidation.
Investor Sentiment 👀
Traders are cautious, balancing inflation persistence against AI optimism, with rotation from tech to defensives. Volume stayed subdued as markets eye Fed path and Q4 earnings wrap. 🐻⚖️
TRADE OF THE DAY:
TER
Name: Teradyne, Inc.
Symbol: TER
Current Price: $332.70
Trade
Sell to Open: 1 TER Mar 20, 2026 275/270 Put Vertical
Total Credit Received: $63.00
Credit per Contract: $63.00 (1 contract × 100 shares)
Direction: Bullish (expects TER to stay above break‑even)
Probability of Profit (PoP): 83.64%
Potential ROI:
Max Risk (Loss): $437.00
ROI: ($63 ÷ $437) × 100 ≈ 14.4%
Trade Explained in Simple English:
You’re selling a bullish put spread on TER that expires March 20, 2026 by selling the 275 strike put and buying the 270 strike put. You receive $63 upfront for this position. The trade makes money if TER finishes above its break‑even level (approximately $274.37) by expiration. Your maximum loss is capped at $437 if the stock falls below the long put strike, and your maximum profit is limited to the $63 credit received.
Wall Street Highlights:
News Beyond the Numbers
Netflix walked away from its deal to acquire Warner Bros. Discovery's studio and streaming assets after Paramount raised its all-cash bid to $31 per share for the entire company. Read more.
Dell reported strong quarterly earnings, projecting its AI-optimized server revenue to double next fiscal year while announcing a 20% dividend increase and $10 billion in additional stock buybacks. Read more.
Block announced plans to cut nearly half its workforce from over 10,000 to under 6,000 employees as part of a strategic overhaul driven by artificial intelligence advancements. Read more.
Brink's agreed to acquire NCR Atleos in a $6.6 billion cash-and-stock deal, including $2.2 billion in cash and 13.3 million shares, expected to close in Q1 2027. Read more.
Greg Abel, Berkshire Hathaway's incoming CEO, is set to release his first annual shareholder letter this weekend alongside quarterly results, outlining his vision for capital allocation post-Buffett. Read more.
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