Afghanistan's soldiers guard the border with Pakistan as both countries trade attacks, in photos

Pakistan’s defense minister says there is a state of “open war” with Afghanistan. Both countries have a long and complicated history harking back to Pakistan’s creation in 1947.

This is a photo gallery curated by AP photo editors.

People offer funeral prayers for paramilitary soldiers killed during a gun-battle with militants in Waziristan area, on the outskirts of Kohat, Pakistan, Friday, Feb. 27, 2026. (AP Photo/S.B. Shah)

A girl, who was injured in the overnight cross border fighting between Pakistan and Afghan forces, receives treatment at a hospital at Khar, in Bajaur, a district of Pakistan's Khyber Pakhtunkhwa province bordering with Afghanistan, Friday, Feb. 27, 2026. (AP Photo)

Afghan Taliban soldiers peer through the sight of their weapons, on the Afghan side of the Torkham border crossing with Pakistan in Torkham, Afghanistan, Friday, Feb. 27, 2026. (AP Photo/Wahidullah Kakar)

Villagers carry the coffin of a paramilitary soldier killed during a gun-battle with militants in Waziristan area, for his funeral prayers on the outskirts of Kohat, Pakistan, Friday, Feb. 27, 2026. (AP Photo/S.B. Shah)

Afghan Taliban soldiers gather on the Afghan side of the Torkham border crossing with Pakistan in Torkham, Afghanistan, Friday, Feb. 27, 2026. (AP Photo/Wahidullah Kakar)

A man, who was injured in the overnight cross border fighting between Pakistan and Afghan forces, receives treatment at a hospital in Khar, in Bajaur, a district of Pakistan's Khyber Pakhtunkhwa province bordering with Afghanistan, Friday, Feb. 27, 2026. (AP Photo/Anwarullah Khan)

Villagers examine damages due to overnight cross border fighting between Pakistan and Afghan forces, at a village in Bajaur, a district of Pakistan's Khyber Pakhtunkhwa province bordering with Afghanistan, Friday, Feb. 27, 2026. (AP Photo)

An Afghan Taliban soldier stands in guard on the Afghan side of the Torkham border crossing with Pakistan in Torkham, Afghanistan, Friday, Feb. 27, 2026. (AP Photo/Wahidullah Kakar)

A villager looks at damaged solar plates and a portion following overnight cross border fighting between Pakistan and Afghan forces, at a village in Bajaur, a district of Pakistan's Khyber Pakhtunkhwa province bordering with Afghanistan, Friday, Feb. 27, 2026. (AP Photo)

Afghan Taliban soldiers stand on the Afghan side of the Torkham border crossing with Pakistan in Torkham, Afghanistan, Friday, Feb. 27, 2026. (AP Photo/Wahidullah Kakar)

Smoke rises after an explosion at a border post on the Afghan side of the Ghulam Khan crossing with Pakistan in Khost province, Afghanistan, Friday, Feb. 27, 2026. (AP Photo/Saifullah Zahir)

Afghan Taliban soldiers walk on a street as others instruct drivers on the Afghan side of the Torkham border crossing with Pakistan in Torkham, Afghanistan, Friday, Feb. 27, 2026. (AP Photo/Wahidullah Kakar)

Afghan Taliban soldiers look toward the Pakistani side, with one peering through the sight of his rifle, on the Afghan side of the Torkham border crossing with Pakistan in Torkham, Afghanistan, Friday, Feb. 27, 2026. (AP Photo/Wahidullah Kakar)

NEW YORK (AP) — U.S. stocks are sinking Friday as Wall Street gets back to hunting and punishing companies that could be made losers by the artificial-intelligence revolution. A surprisingly discouraging update on inflation is also hurting the market, while oil prices climb with worries about tensions between the United States and Iran.

The S&P 500 fell 0.7% and is staggering toward the finish of what would be just its second losing month in the last 10. The Dow Jones Industrial Average was down 680 points, or 1.4%, as of 10:15 a.m. Eastern time, and the Nasdaq composite was 0.8% lower.

The losses came as investors returned to knocking down software companies and others whose businesses could end up getting supplanted by AI-powered competitors.

Block, the company behind Cash App, Square and other businesses, gave a signal of what AI could do after CEO Jack Dorsey said he was cutting its workforce by nearly half. That’s even though Block’s profit is growing and it’s sending more cash to shareholders through stock buybacks.

“Intelligence tools have changed what it means to build and run a company,” Dorsey said in a letter to shareholders while announcing Block’s latest profit results. “We’re already seeing it internally. A significantly smaller team, using the tools we’re building, can do more and do it better.”

The co-founder of Twitter also said, “I don’t think we’re early to this realization. I think most companies are late. Within the next year, I believe the majority of companies will reach the same conclusion and make similar structural changes.”

Block is cutting more than 4,000 jobs from its workforce of over 10,000. Its stock jumped 17.5%.

Capable AI tools that can replace humans could also replace entire companies, or at least eat away at their profit margins. Fears about AI disruption have been causing sudden and swift sell-offs for stocks seen as potentially under threat, rolling through industries as seemingly disparate as trucking logistics and legal services.

Salesforce, whose platform helps customers manage their relationships with clients, fell 4%. It gave back its 4% gain from the day before after reporting a better profit than analysts expected.

A widely followed ETF tracking the software industry, meanwhile, sank 2.5% to bring its loss for the year so far to 23.8%. The pain has also filtered out to the private-equity companies that have lent money to software companies, which need to withstand the AI threat to keep repaying their debt. Blue Owl Capital fell 4.3%.

Even the companies currently seeing their revenue and profits soar because of AI-related demand are weakening. Nvidia fell 1.7% and was the heaviest weight on the U.S. stock market, a day after dropping to its worst loss since last spring. That's even though it reported a better profit than analysts expected and forecast more in revenue for the current quarter.

Rival chip companies fell by similar amounts. Worries are hurting such companies not only about whether their stock prices rose too high in recent years but also whether the huge spending driving their growth can continue.

Can big spenders like Amazon and Alphabet make back all their billions of dollars in AI investments through higher productivity and profits in the future?

On the winning side of Wall Street was Netflix, which jumped 8.8% after walking away from its bid to buy Warner Bros. Discovery’s studio and streaming business. That put Skydance-owned Paramount in a position to take over its Hollywood rival.

Paramount Skydance shares climbed 7.6%, while Warner Bros. Discovery fell 2%.

Some of the strongest action in financial markets was for oil, where the price for a barrel of benchmark U.S. crude oil rose 2.8% to $67.04. It's the latest big swing in the market that's been hit by worries about rising tensions between the United States and Iran over Iran’s nuclear program.

The U.S. military has already gathered a massive fleet of aircraft and warships in the Middle East, and a conflict could disrupt the global flow of oil and drive prices higher.

Brent crude, the international standard, rose 2.7% to $72.73 per barrel.

Also hurting the broad market was a report showing that inflation at the U.S. wholesale level was at 2.9% last month, much higher than the 1.6% that economists expected.

The number was so much worse than expected that it could help persuade the Federal Reserve to hold off longer on its cuts to interest rates. Lower rates would give the economy and prices for investments a boost, but they risk worsening inflation at the same time.

In the bond market, the yield on the 10-year Treasury was at 3.98%. It swiveled higher following the inflation report, but it’s down from its 4.02% level late Thursday.

ln stock markets abroad, indexes were mixed in Europe and Asia. South Korea’s Kospi fell 1% from its latest record, and Hong Kong’s Hang Seng rose 0.9% in two of the world’s larger moves.

AP Business Writers Matt Ott and Elaine Kurtenbach contributed.

Trader John Romolo works on the floor of the New York Stock Exchange, Friday, Feb. 20, 2026. (AP Photo/Richard Drew)

Specialist Thomas McArdle works at his post on the floor of the New York Stock Exchange, Friday, Feb. 20, 2026. (AP Photo/Richard Drew)

Trader Timothy Nick, left, and Robert Charmak work on the floor of the New York Stock Exchange, Friday, Feb. 20, 2026. (AP Photo/Richard Drew)

People walk near an electronic stock board showing Japan's Nikkei index at a securities firm Thursday, Feb. 26, 2026, in Tokyo. (AP Photo/Eugene Hoshiko)

A person stands as a vehicle passes by in front of an electronic stock board showing Japan's Nikkei index at a securities firm Thursday, Feb. 26, 2026, in Tokyo. (AP Photo/Eugene Hoshiko)

A currency trader watches a monitor near a screen showing the Korea Composite Stock Price Index (KOSPI), top center, and the foreign exchange rate between U.S. dollar and South Korean won, top left, at the foreign exchange dealing room of the Hana Bank headquarters, in Seoul, South Korea, Friday, Feb. 27, 2026. (AP Photo/Ahn Young-joon)

A currency trader passes by a screen showing the Korea Composite Stock Price Index (KOSPI), left, at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Friday, Feb. 27, 2026. (AP Photo/Ahn Young-joon)

Currency traders watch monitors near a screen showing the Korea Composite Stock Price Index (KOSPI), top center, and the foreign exchange rate between U.S. dollar and South Korean won, top center left, at the foreign exchange dealing room of the Hana Bank headquarters, in Seoul, South Korea, Friday, Feb. 27, 2026. (AP Photo/Ahn Young-joon)