Hot inflation and AI fears pressure markets

February ended on a downbeat note, particularly on Wall Street while the TSX outperformed. On Friday, hotter than expected U.S. inflation numbers from January worried investors; the producer’s index rose 0.5% compared to the expected 0.3%, but core PPI came in at a high 0.8% cs the street’s 0.3%. The U.S. 10-year yield tumbled to 3.95%  while the S&P closed -0.43% (and that much for the week), the Nasdaq -0.9% (for the week as well) and the Dow -1.05%, which slid 1.3% for the week. For the month of February, the Dow nearly broke even, but the S&P sank 1.45% and the Nasdaq slid nearly 5%.

Other headlines that rocked investors was Block announcing that AI will replace 40% of its workforce. Block itself jumped 16.82%, while Dell soared 21.93%, American Express tumbled 7.88%, and Apollo Global Management shed another 8.57%. The Warner Brothers takeover found closure after Netflix bowed out of contention. Its shares jumped 13.77% while winner Paramount Skydance rocketed 20.84%.

Meanwhile, on Bay Street the TSX slipped 0.49% on Friday, but climbed 1.55% for the week and 3.76% in February. Only four sectors, led by telcos, gained while tech and financials lagged the most. Key names: CCL Industries rallied 6.86%, Aya Gold & Silver 5.84%, Aritzia -7.8%, Energy Fuels -6.7% and BRP -5.81%. Silver continued to gain, up over 6% to US$93.55, gold advanced US$76 to US$5,261 and WTI rose 3.2% to US$67.39 as tensions between the U.S. and Iran could explode into war.

💾 Block Inc (SQ-N) +16.82%

💻 Dell Computers (DELL-N) +21.93%

🏛 American Express (AXP-N) -7.88%

🏛 Apollo Global Management (APO-N) -8.57%

📺 Netflix Inc. (NFLX-Q) +13.77%

🎞 Paramount Skydance Corporation (PSKY-Q) +20.84%

🚚 CCL Industries (B) (CCL.B-T) +6.86%

⛏ Aya Gold & Silver (AYA-T) +5.84%

👗 Aritzia Inc. (ATZ-T) -7.8%

⛏ Energy Fuels Inc. (EFR-T) -6.7%

🛒 BRP INC. (DOO-T) -5.81%