Tech and financials weigh on stocks as credit risks rise
Markets shifted to risk-off mode on hotter-than-expected producer prices and rising credit risks.
The S&P 500 and Nasdaq 100 were both down for the day, week, and month while the Russell 2000 was down on the day and week, but gained for the month, as February trading came to a close.
Healthcare was today’s best-performing sector, followed by energy as crude oil rose on tensions with Iran. Financials and tech were the worst performers as rising credit risks weighed on upstart growth companies. Hit particularly hard were neoclouds and data center companies like Nebius, IREN, Applied Digital, and Cipher Digital, as well as quantum computing companies including IonQ, D-Wave Quantum, Rigetti Computing, and Infleqtion.
Bitcoin continued its downward trend and headed for its fifth consecutive losing month.
Stocks that moved higher:
Dell was the best-performing stock in the S&P 500 today, with shares skyrocketing as analysts applauded its “exceptional beat+raise.”
Paramount Skydance was the benchmark index’s second-best performer after winning the war for Warner Bros. Discovery after Netflix declined to raise its bid. Paramount paid a $2.8 billion breakup fee to Netflix, whose shares also surged.
Block soared after cutting more than 4,000 jobs as part of its plans to “replace human labor with compute power.”
Power producer AES Corp. jumped after Bloomberg reported that BlackRock-owned Global Infrastructure Partners and equity firm EQT AB are close to acquiring the utility.
MARA Holdings spiked as the bitcoin miner plans to pivot to AI, partnering with investment firm Starwood to convert sites into data centers.
Rocket Companies ticked higher on a Q4 earnings beat and strong Q1 2026 guidance.
Stocks that moved lower:
CoreWeave plummeted after its Q4 capex exceeded estimates and its 2026 investment budget was higher than anticipated.
Figure Technology Solutions sank on underwhelming Q4 results as analysts cut their price targets to $55 (from $62 and $71).
Zscaler dropped as its second-quarter net loss widened and spending rose.
Sweetgreen tumbled after weak Q4 results as its outlook for established restaurant sales is expected to contract by 2% to 4% this year.
Rocket Lab slumped despite an earnings beat after revealing the launch of its new, larger Neutron rocket is delayed.
FanDuel parent Flutter Entertainment dropped after its Q4 revenue and earnings missed estimates.
Duolingo plummeted after forecasting a sharp slowdown in bookings growth.
Grindr Inc. dropped despite reporting both an earnings and revenue beat after the bell yesterday.
