U.S. stocks finish lower following high wholesale inflation data

U.S. stocks ended lower on Friday as unexpectedly high wholesale inflation data cooled investor hopes for easing price pressures and reignited concerns over the broader economic outlook.

The Dow Jones Industrial Average fell by 521.28 points, or 1.05 percent, to 48,977.92. The S and P 500 sank 29.98 points, or 0.43 percent, to 6,878.88. The Nasdaq Composite Index shed 210.17 points, or 0.92 percent, to 22,668.21.

Nine of the 11 primary S and P 500 sectors ended in green, with health and energy leading the gainers by going up 1.77 percent and 1.68 percent, respectively. Meanwhile, technology and financials led the laggards by dropping 2.17 percent and 1.99 percent, respectively.

The Bureau of Labor Statistics reported Friday that wholesale prices in the United States rose faster than anticipated in January. The core producer price index (PPI), which excludes volatile food and energy components, increased by a seasonally adjusted 0.8 percent. This figure surpassed the 0.6 percent gain recorded in December and came in well above the consensus estimate of 0.3 percent.

Analysts warn that these pipeline price pressures could compel the Federal Reserve to maintain a cautious stance as it deliberates its next moves regarding interest rates.

Fears regarding artificial intelligence's disruptive potential on the labor market and specific industries also weighed heavily on investor sentiment Friday. These concerns were sharply amplified after fintech company Block announced plans to lay off more than 4,000 employees, effectively eliminating nearly half of its entire workforce.

In major corporate developments, Netflix surged 13.75 percent after the streaming giant officially abandoned its pursuit to acquire Warner Bros. Discovery. The withdrawal cleared the path for Oracle-linked bidder Paramount Skydance to clinch the purchase of the Hollywood studio.

In other notable post-earnings moves, Dell Technologies surged nearly 22 percent, while CoreWeave plummeted 18.51 percent after issuing disappointing quarterly revenue guidance.

U.S. stocks finish lower following high wholesale inflation data

The United States and Israel on Saturday launched "major combat operations" against Iran, plunging the war-torn Middle East into a new round of violent conflicts.

U.S. President Donald Trump said the objective "is to defend the American people by eliminating imminent threats" from Iran, and the Israeli Defense Ministry said the country launched a "preemptive" strike against Iran "to remove threats to Israel."

In Tehran, missiles hit areas near the offices of both Iranian Supreme Leader Ali Khamenei and President Masoud Pezeshkian. Iranian sources said that both leaders remain unhurt.

Israeli-U.S. airstrikes also struck a girls' school in southern Iran, killing at least 60 students, with 80 others injured, Hossein Kermanpour, head of the Iranian Health Ministry's public relations, said in a post on social media. Dozens more are reportedly still trapped under rubble.

Iran closed its airspace while the attacks were ongoing. Mobile phone services have been cut in parts of Tehran.

Iran has retaliated with a series of counterattacks against Israel and U.S. targets across the region, with explosions reported in Bahrain, Qatar, Kuwait, Jordan, the United Arab Emirates (UAE), and Saudi Arabia, among other countries.

Israel's Defense Minister Israel Katz declared a special and immediate state of emergency in all areas of Israel. Sirens were sounded across Israel to warn the public to prepare for the possibility of Iranian retaliation. Israeli airspace has been closed to civilian flights, according to Israeli Airports Authority.

In response to the sharp regional escalation, several countries have slammed their airspace totally or partially shut, and multiple airlines have canceled flights to the Middle East.

The attacks against Iran came after the U.S.-Iran nuclear talks concluded in Geneva on Thursday. Tensions between the United States and Iran were soaring amid massive U.S. military buildup in the Middle East and the stalled nuclear talks.

US, Israel launch major attacks against Iran, trigger retaliations