February's Financial Turmoil: Stocks Plummet Amid Investor Jitters

The U.S. stock market faced significant declines in February due to concerns over artificial intelligence, tariffs, and geopolitical tensions. Financial and tech stocks suffered the most, with key indexes dropping sharply. Defensive sectors performed better, while hotter inflation data weakened hopes of a dovish Federal Reserve policy.

Financial and tech stocks in the U.S. were heavily impacted on Friday, leading to the largest monthly decline in a year. Major indexes posted steep weekly declines, driven by artificial intelligence uncertainties, revived tariff concerns, and geopolitical tensions.

Ryan Detrick, chief market strategist at Carson Group, pointed out that despite February's challenges, corporate earnings showed a 14% gain in the fourth quarter, crucial for long-term stock growth. Notably, financial stocks plunged amid concerns about lending standards, as banks like Barclays and Wells Fargo faced potential losses from the UK mortgage firm collapse.

Tech shares struggled as lingering AI-related fears hit the sector, while defensive stocks rose. A hotter Producer Price Index reading dampened hopes for a Fed interest rate cut. The S&P 500 and Nasdaq saw notable declines, reflecting ongoing market unease over AI. Meanwhile, Netflix surged following strategic moves amid broader market volatility.

(With inputs from agencies.)