U.S. Economy and Markets

Block said AI was a key driver behind its 4,000‑plus job cuts, a development that coincided with a broader market selloff as the S&P 500 fell 0.9%, the Dow plunged 1.4% (about 701 points) and the Nasdaq dropped 1.3%. The rout was stoked by hotter‑than‑expected January PPI (2.9% annualized vs. 1.6% expected), which raised bets the Fed will delay rate cuts, while oil rose about 2.5% amid Iran tensions and investors dumped software and PE‑linked names (software ETF down 1.8% on the day, 23.3% YTD; Apollo -8.5%, Ares -6.2%), even knocking AI leader Nvidia down 3.5% despite strong earnings amid concerns about overvaluation and the sustainability of AI‑driven capex.

U.S. stocks fell sharply Friday after January’s Producer Price Index came in at a 2.9% annualized increase—far above the 1.6% economists expected—raising the odds that the Federal Reserve will delay cutting interest rates. The Dow Jones Industrial Average dropped 701 points (1.4%), the S&P 500 lost 0.9%, and the Nasdaq slid 1.3% as investors also digested a new wave of AI‑driven restructuring fears. Block shares jumped more than 15% after CEO Jack Dorsey said he will cut the company’s workforce from about 10,000 to 6,000, arguing that 'intelligence tools' let a much smaller staff 'do more and do it better,' a signal that spooked holders of software names and their lenders who now worry similar cuts will spread. A software ETF fell 1.8% on the day and is down over 23% this year, while private‑equity giants Apollo Global Management and Ares Management dropped 8.5% and 6.2% respectively, and even AI beneficiaries like Nvidia sank 3.5% amid questions about stretched valuations and whether AI capital spending can keep rising. Oil prices climbed about 2.5% as benchmark U.S. crude hit $66.82 a barrel and Brent reached $72.68, reflecting market jitters over escalating U.S.–Iran tensions and Trump’s public threats of military action if Tehran does not curb its nuclear work.