US stocks close lower as inflation data and AI concerns weigh on market

By Gokhan Ergocun

ISTANBUL (AA) - US stock markets close the week with significant losses as investors digest hotter-than-expected inflation data and worry about the impact of AI on software companies.

The Dow Jones Industrial Average dropped by 1.06%, or 525.47 points, to close at 48,973.73.

The Nasdaq fell by 0.92%, or 210.17 points, to 22,668.21, while the S&P 500 went down 0.43%, or 29.99 points, to 6,878.87.

The Volatility Index (VIX), also known as the "fear index," rose by 7.62% to 20.05 points, as of 2100GMT.

Block's Chief Executive Officer Jack Dorsey announced his payment company laid off 40% of its workforce because of a major shift toward artificial intelligence technologies; Dorsey stated the enterprise needed to adapt to changing market conditions.

Shares of Block skyrocketed more than 20% after the market close following the announcement regarding the elimination of 4,000 jobs.

AI company OpenAI, owner of ChatGPT, announced that it has received $110 billion in new investment at a valuation of $730 billion, with participation from SoftBank, Nvidia, and Amazon.

Netflix announced that its merger agreement with Warner Bros. Discovery has been terminated, and that Paramount Skydance has paid a $2.8 billion termination fee.

In the US, the Producer Price Index (PPI) rose 0.5% on a monthly basis and 2.9% on an annual basis in January, exceeding expectations, the official data showed on Friday.

Global oil prices hit six-month high on Friday, surging around 2.6% related to upscaling tension in the Middle East.