Stocks Stunted by Hot Inflation Data, Tech Troubles

Stock futures are poised to finish February on a dour note, as tech troubles combined with inflation data grind down sentiment. The producer price index rose 0.5% for January, hotter than the 0.3% expectations and sending Wall Street into a tailspin. Core prices excluding food and energy, rose 0.8%, also hotter than expected. 

Futures on the Dow Jones Industrial Average (DJI) are eyeing a more than 500-point drop out of the gate, while Nasdaq Composite (IXIC) and S&P 500 Index (SPX) futures are also sporting sharp losses. Bond yields continue to simmer as well, with the 10-year Treasury yield last seen below 4%. Elsewhere, Netflix (NFLX) dropping out of the Warner Bros Discovery (WBD) bidding war that has shaken up the media sector.

• How quantum computing avoided the tech selloff.
• Schaeffer's is on Substack: Check out The Contrarian Edge.
• Plus, DLTR downgraded; and two dismal earnings reports drawing bear notes.

5 Things You Need to Know Today

1. The Cboe Options Exchange saw 2.3 million call contracts and roughly 1.4 million put contracts traded on Thursday. The single-session equity put/call ratio slipped to 0.59, falling for the fourth-straight day, while the 21-day moving average remained at 0.59. 
2. Dollar Tree Inc (NASDAQ:DLTR) stock is 1.6% lower ahead of the bell, after Citi downgraded the discount retailer to "neutral" from "buy." The analyst in coverage believes the risk/reward setup is now balanced. Dollar Tree stock is 71% higher year-over-year and hit an annual high of $142.40 on Jan. 15. 
3. CoreWeave Inc (NASDAQ:CRWV) stock is down 11.4% before the open, after the cloud infrastructure company's fourth-quarter earnings fell short of estimates, while revenue guidance also lagged. Six analysts have trimmed their price targets in response, the worst coming from Mizuho to $95 from $100. CoreWeave stock is up 36% in 2026 going into today.
4. The shares of Duolingo Inc (NASDAQ:DUOL) are off by 22% in electronic trading, after the language learner's bookings outlook and weaker-than-expected first-quarter guidance overshadowed an earnings beat. Two downgrades this morning from J.P. Morgan Securities and Scotia Bank are not helping. DUOL is nursing a 33% year-to-date deficit heading into the open.
5. Next week will bring more inflation data.

Europe Sifting Through It's Own Inflation Data Deluge

Asian markets managed to settle mostly higher, brushing off a decline in tech and AI stocks following Nvidia’s (NVDA) post-earnings pullback. Japan’s Nikkei added 0.1%, Hong Kong’s Hang Seng tacked on 1%, and China’s Shanghai Composite rose 0.4%. South Korea’s Kospi bucked the trend, falling 1%, as Nvidia suppliers SK Hynix and Samsung struggle.

European bourses are a mixed bag today, as investors weigh another round of economic data. Germany’s consumer prices increased to 2% in February, down 0.1% from January and the expected unchanged rate. The country also reported a slight lift in jobless claims to 2.97 million this past month, while its seasonally adjusted rate remained unchanged at 6.3%. France’s annual inflation rose to 1% for February, a 0.3% increase from January as energy prices retreat. At last glance, London’s FTSE 100 is up 0.5%, France’s CAC 40 is off 0.2%, and Germany’s DAX is flat at 0.08%.