The Dow Jones Industrial Average and other major indexes tallied up large losses at the close Friday as investors succumbed to news of higher-than-expected inflation. Meanwhile, shares of initial public offering CoreWeave — a firm backed by Nvidia — had a so-so debut on the stock market today.
The Nasdaq composite led the major indexes down once again as it was hammered 2.7%, for a loss of 481 points. Stocks on the S&P 500 also got a drubbing with a 2% decline.
The Dow Jones Industrial Average dropped 1.7%, or 715 points. With Friday's action, the Dow joined the Nasdaq and S&P 500 by diving below its 200-day moving average.
Further, small caps clung to losses, with the Russell 2000 tumbling 2.1%.
Volume was lower on the Nasdaq and modestly higher on the New York Stock Exchange compared with the same time Thursday. On both the Nasdaq exchange and the NYSE, losers beat gainers by roughly 4-to-1.
The benchmark 10-year Treasury yield fell 12 basis points to 4.25% Friday afternoon. And oil prices sank to around $69.10 a barrel.
CoreWeave Climbs After Rough Start
CoreWeave, an artificial intelligence infrastructure player, started trading on the Nasdaq Friday. The stock had an IPO offer price of $40 a share with 37.5 million shares offered. The stock dropped nearly 4% shortly after trading began. But then CoreWeave fluctuated, and ultimately ended the day unchanged.
The price was set Thursday night and came in lower than CoreWeave's target price range of $47-$55 on 49 million shares. The offering comes as AI and related stocks have pulled back.
Nvidia owns 6% of CoreWeave and reportedly scooped up $250 million of the newly issued shares. Nvidia is a customer of CoreWeave, but its largest revenue generator is Microsoft. Shares of Microsoft fell more than 3%.
CoreWeave offers cloud computing, storage and networking services. It uses Nvidia-based graphics processing chips.
Nvidia stock lost 1.6% on the stock market today. Nvidia is about 14% below its 200-day line and has lost around 18% so far this year. It also holds a weak 30 IBD Relative Strength Rating.
1:54 p.m. ET
Stock Market Today: LandBridge Tops IBD 50 Losers
LandBridge cratered and traded below a 76.22 buy point out of a double-bottom base after a recent breakout faded. The oil-and-gas land management stock also sliced below its 50-day line Friday.
Another IBD 50 big loser was ACM Research. Shares tanked more than 8%, hitting IBD's 7% loss rule from a deep cup-without-handle base with a 26.32 buy point.
Exchange traded fund Innovator IBD 50 ETF gave back 2.4% and remained below its 200-day line.
Netflix Joins Sell-Off; Dow Jones' Biggest Loser
IBD Big Cap 20 name Netflix retreated more than 4% and fell back below its 50-day line.
Some retail and related names were also hit hard following the hot inflation data.
Dow Jones component Amazon.com slumped more than 4% and undercut its 200-day line on the stock market today. Amazon stock was on pace for its largest decrease since August, according to MarketSurge. It was also the biggest loser on the Dow Jones Friday.
Another Dow loser was footwear and athletic maker Nike with a drop of nearly 4%.
Outside the Dow Jones, Dutch Bros slid despite its inaugural investor day Thursday. Shares fell further below their 50-day line in a fourth straight day of selling.
12:39 p.m. ET
Inflation Report Socks Stocks
The major indexes tumbled after the Commerce Department's February Personal Consumption Expenditures report, released ahead of the market open, came in higher than expected.
The PCE price index rose 0.3% as expected and was unchanged from January's reading. The annualized PCE index increased 2.5%, also in line with estimates with no change from the prior month's number.
But the Federal Reserve's preferred gauge, the core PCE index, climbed 0.4% in February vs. the 0.3% forecast. It also bumped up 2.8% vs. the 2.7% forecast on a year-over-year basis, and topped January's revised 2.7% increase. Core PCE strips out more volatile food and energy prices.
Meanwhile, the February personal consumption expenditures increased 0.4% and fell short of the 0.5% expected, with January's reading revised to a decline of 0.3%.
In separate economic news, the March University of Michigan Consumer Sentiment Index fell to 57 vs. the 57.9 expected.
Trump Tariffs Slam Stock Market. More Are Coming.
Aviation Stock Crashes As An IBD 50 Name Jumps
AAR Corp crumbled in giant volume after the aviation services provider sorely missed fiscal third-quarter sales projections. It also reported a net loss of $8.9 million as the result of a $63.7 million charge associated with a divestiture of its landing gear overhaul business.
Shares flashed a sell signal after knifing below their 200-day line. AAR stock has also given back gains from a breakout of a skewed double-bottom base with a 69.16 buy point.
Bucking the losing trend was IBD 50 insurance stock W.R. Berkley with a jump of nearly 8% in enormous volume on the stock market today. The move came on news Japanese property and casualty insurance carrier Mitsui Sumitomo Insurance intends to buy 15% of W.R. Berkley shares.
The stock is extended from a cup-with-handle buy zone reaching to 67.18. W.R. Berkley hit an all-time high and was the biggest gainer on the S&P 500.
Also, Robinhood Markets slid for its fourth straight day of losses. Palantir Technologies sold for a four-day losing streak. And Tesla skidded 3.5% as it hovers below its 200-day line.
10:48 a.m. ET
Stock Market Today: Lululemon Plunges
Lululemon Athletica plunged nearly 15% in huge volume despite the athletic-wear maker's better-than-expected earnings and sales for its fiscal fourth quarter. Investors instead focused on its fiscal 2025 profit outlook that came in below views. Shares sank below the bottom of a consolidation and undercut their 200-day line on the stock market today.
Argan catapulted after the power industry service provider crushed fiscal fourth-quarter earnings and revenue projections. The stock pierced through its 50-day moving average in heavy trading.
Braze popped following the company's beat on fiscal fourth-quarter profit and sales forecasts. It also gave a fiscal 2026 earnings outlook that was above expectations.
Rocket Lab USA climbed following Thursday's news it was selected to bid for a $5.6 billion contract from the U.S. Space Force.
AppLovin rebounded somewhat after plummeting more than 20% Thursday on a negative report by Muddy Waters.
Follow Kimberley Koenig for more stock market news on X, the platform formerly known as Twitter, @IBD_KKoenig.
