Markets Brace for PPI Volatility 27/02/2026

HOT stories for today

Market wrap:

• Downbeat reactions to key technology earnings weighed on U.S. equities Thursday, with the S&P 500 slipping 0.5% and the Nasdaq Composite falling 1.2%. The Dow Jones Industrial Average bucked the trend, edging up 17 points, or less than 0.1%. Nvidia shares dropped 5.5% in a move that caught many investors off guard, given the chipmaker’s blowout fourth-quarter results and strong product-cycle outlook. Traders pointed in part to lingering questions around Nvidia’s relationship with OpenAI. The session also featured a rotation into more cyclical pockets of the market, with financials and industrials among the top-performing sectors.
• Investors continue to keep an eye on tensions tied to President Donald Trump’s tariff agenda and U.S.-Iran relations. Sentiment has softened as well: optimism about the six-month outlook for stocks fell for a fourth straight week in the latest survey from the American Association of Individual Investors. Attention now turns to the January producer price index data due Friday, a key read on wholesale inflation. The session will also close out February, a volatile month that has left technology shares under pressure amid persistent fears of AI disruption. The Nasdaq Composite is on pace for a roughly 2.5% monthly drop, its worst showing since March, while the S&P 500 is tracking for a 0.4% decline. The Dow, by contrast, is headed for a 1.2% gain on the month.

Private Credit’s First Real Stress Test Is Coming

• Private credit has surged into a roughly $2 trillion market, promising higher yields in exchange for illiquidity. But it hasn’t been tested by a full recession or sustained market stress without a Federal Reserve backstop, and that first real downturn could expose cracks. The recent jitters around Blue Owl Capital, after redemptions in a retail-oriented private-credit vehicle, highlighted the industry’s core mismatch: fundamentally hard-to-sell loans are increasingly being offered to investors who may want cash quickly. Even if managers can meet withdrawals, “periodic liquidity” can break down when many investors exit at once. 
• Layered leverage adds risk, at borrowers, within fund structures, and sometimes at the investor level, while growing ties to insurers and private-wealth channels could transmit stress across markets. And opacity is the accelerant: with limited secondary trading and inconsistent marks, a loss of confidence in valuations could force discounted sales that reset pricing broadly, triggering a loop of redemptions, markdowns and deleveraging. For now, it’s a tail risk, but the retail push may prove to be private credit’s moment of truth.

Stocks on the move:

• Block (SQ): Shares jumped 24% in extended trading after the payments company said it will cut more than 4,000 jobs — about half of its workforce.
• Zscaler (ZS): The cloud-security stock sank nearly 10% after second-quarter deferred revenue came in at $2.36 billion, missing the StreetAccount consensus of $2.45 billion. Billings also fell short at $819.8 million versus expectations for $893.3 million.
• Monster Beverage (MNST): The energy-drink maker slid about 3% as fourth-quarter operating margin landed at 29%, slightly below the 29.8% StreetAccount consensus. Results otherwise topped forecasts, with adjusted EPS of 51 cents on $2.13 billion in revenue versus expectations for 48 cents on $2.04 billion.
• Dell Technologies (DELL): Shares rallied 10% after a strong fourth quarter. Adjusted earnings were $3.89 a share, beating the $3.53 LSEG consensus, while revenue of $33.38 billion topped estimates for $31.73 billion.
• Rocket Lab (RKLB): The space-stock fell roughly 4% after the company guided to a first-quarter adjusted EBITDA loss of $21 million to $27 million, wider than the $17 million loss expected, according to FactSet.

Watchlist: DELL, SQ, ZS, INTU, MNST, RKLB, ADSK, CRWV, NVDA

Key Economic Events Today:

EST time

08:30 am: USD PPI, Core PPI
09:45 am: USD Chicago PMI
10:00 am: USD Construction Spending


Earnings

BMO (Before Market Open): Person Plc. (PSO), Frontline
 (FRO), Globalstar (GSAT)



The TEFS Analyst team wishes you a successful day!