U.S. equities finished the week ending Friday, February 27, 2026 on a sharply weaker note, as hotter‑than‑expected inflation data and mounting anxiety over the economic and earnings impact of artificial intelligence (AI) triggered a broad risk‑off move across technology and growth shares.
Index performance
The Dow Jones Industrial Average fell roughly 1%–1.5% on Friday alone, a decline of more than 500 points, capping a volatile week but still leaving the blue‑chip index marginally positive—about 0.2%—for February and extending its run to a tenth straight month of gains. The S&P 500 dropped around 0.5%–0.6% on Friday and finished the month down about 0.8%–0.9%, its steepest monthly pullback since March 2025 as selling pressure broadened beyond megacap tech into cyclicals and financials. The tech‑heavy Nasdaq Composite led to the downside, sliding roughly 0.8%–1.4% on Friday and ending the month lower by about 3%, as investors reassessed rich AI‑driven valuations and the durability of cloud and software spending. Volatility picked up meaningfully into week‑end, with the Cboe Volatility Index (VIX) moving into the low‑20s and posting a double‑digit percentage gain as traders rushed to add downside hedges.
Taken together, the major benchmarks showed a clear pattern: relatively resilient industrial and value exposure in the Dow, broad but still manageable downside in the S&P 500, and more acute weakness in the growth‑ and AI‑heavy Nasdaq. This style dispersion underscored investor efforts to rotate away from the most crowded AI leaders while keeping some exposure to more traditional cyclical and defensive names.finance.
Drivers: inflation, Fed path and rates
A “hot” wholesale inflation report toward the end of the week surprised to the upside, reinforcing the idea that disinflation progress is becoming less linear and pushing back expectations for aggressive Federal Reserve rate cuts in 2026. Fixed income markets saw modest upward pressure on Treasury yields earlier in the week on steady growth and fiscal concerns, with the 10‑year hovering in a 4.0%–4.25% range, before yields eased on softer prior CPI readings and an essentially unchanged market‑implied Fed rate path. Strategists highlighted that while the Fed is still expected to deliver only a limited number of quarter‑point cuts this year, the risk of inflation running persistently above target has re‑entered the discussion, contributing to higher rate‑volatility and compressing equity multiples at the margin.
This macro backdrop left risk assets trading in a narrow channel between hopes for eventual policy easing and fears that the Fed will be forced to stay restrictive longer than previously assumed. Equity investors reacted by de‑risking high‑duration assets—particularly long‑duration tech and AI names—while treating more stable cash‑flow stories and rate beneficiaries as relative safe havens.
AI anxiety and sector moves
The week’s defining narrative was a shift from “AI euphoria” to “AI disruption risk,” as fresh commentary from corporate leaders and investors emphasized potential job losses, margin pressure and capital‑intensity associated with large‑scale AI investments. Announcements of aggressive cost‑cutting and layoffs tied to AI efficiency—such as a major workforce reduction at Block (XYZ, $63.70, +19.69% over the last 5-days) that was explicitly linked to AI gains—underscored fears that automation could weigh on employment and demand across software, wealth management, real estate and other white‑collar industries. At the same time, a massive new private funding round for a leading AI model developer—reportedly totaling about 110 billion dollars from a consortium including Nvidia, Amazon and SoftBank—spotlighted the capital‑intensive nature of AI infrastructure and raised questions about long‑term returns on these projects.
Big‑cap AI bellwethers came under pressure, with names such as Microsoft and Oracle sliding by high‑single to low‑double‑digit percentages over the month, while AI‑heavy sector and thematic ETFs gave back a notable portion of last year’s gains. Yet the tape was not uniformly negative: select names in communications and software, including companies like RingCentral, as well as certain legacy tech and enterprise players such as Cisco and SAP, managed to hold up or advance on idiosyncratic news and earnings. This divergence highlighted that while the market is reassessing AI winners and losers, it is not abandoning the theme altogether, instead becoming more discriminating about balance sheets, capital‑spending plans and visibility into monetization.
Style, sector and global context
Within the S&P 500, information technology, communication services and consumer discretionary led declines for the week and month, reflecting their heavier concentration of AI beneficiaries and longer‑duration earnings streams. More defensive and rate‑sensitive pockets of the market, such as financials, occasionally held up better as higher yields supported net‑interest‑margin narratives, although they were not immune to broad risk‑off sentiment. Alternative asset managers with heavy exposure to private credit, including Apollo and Blackstone, faced selling pressure as dividend cuts in business development companies stoked concern that the private credit boom could be entering a more stressed phase.
Outside the U.S., European equities offered a modest counterpoint to the AI‑driven tech unwind. Germany’s DAX, for example, managed to end February in positive territory—up just over 3% for the month—supported by a different sector mix and relatively less exposure to U.S.‑style AI megacaps. This divergence suggested that while risk appetite is cooling globally, the epicenter of AI‑valuation repricing remains U.S. growth benchmarks, particularly the Nasdaq and the AI‑heavy components of the S&P 500.
Positioning into March
With the S&P 500 and Nasdaq posting their sharpest monthly pullbacks in nearly a year and volatility resetting higher, positioning appears less extended than at the start of February, but traders remain highly sensitive to incremental data on inflation, labor markets and corporate AI spending plans. Bond markets are pricing a “lower‑for‑longer, but not too fast” easing cycle, with only a couple of Fed cuts expected this year; that combination of still‑restrictive policy, slower disinflation and elevated uncertainty around AI’s impact leaves risk assets vulnerable to additional event‑driven swings in the weeks ahead.
Against that backdrop, many portfolio managers are emphasizing quality balance sheets, free‑cash‑flow resilience and pricing power, particularly in companies that can harness AI productivity benefits without requiring massive incremental capital outlays. Until the path of inflation and the policy response become clearer—and the market gains more confidence in AI’s net economic impact—short‑term trading is likely to remain headline‑driven and skewed toward volatility spikes around data releases and major corporate AI updates.
VP Watchlist Updates
Below is an update‑style snapshot on the VP Watchlist names for the week, focused on recent catalysts, positioning, and narrative rather than precise price moves.
Eupraxia Pharmaceuticals (EPRX, $8.18)
Eupraxia Pharmaceuticals Inc. (“Eupraxia” or the “Company”), a clinical-stage biotechnology company leveraging its proprietary Diffusphere™ technology designed to optimize local, controlled drug delivery for applications with significant unmet need, is pleased to announce the successful closing of its previously announced public offering (the “Offering”) of 7,607,145 common shares of the Company (the “Common Shares”), which includes the full exercise of the option to purchase additional shares granted to the underwriters, at a price to the public of US$7.00 per Common Share, and pre-funded warrants to purchase up to 1,428,571 Common Shares in lieu thereof (the “Pre-Funded Warrants”) at a price of US$6.99999 per Pre-Funded Warrant, which equals the public offering price per Common Share less the C$0.000001 per share exercise price of each Pre-Funded Warrant, for gross proceeds of approximately US$63.2 million, before deducting the underwriting commissions and estimated expenses incurred in connection with the Offering.“We are pleased to complete this financing, allowing us to significantly expand our pipeline, reach several additional development milestones with EP-104GI for eosinophilic esophagitis, and make meaningful progress towards commercial readiness,” said James Helliwell, CEO of Eupraxia. “We appreciate the support from both existing and new investors as we execute our mission and pursue the next phase of growth for Eupraxia.” Cantor and LifeSci Capital acted as joint book-running managers for the Offering. Bloom Burton and Craig-Hallum also acted as co-managers for the Offering. As previously stated, the Company intends to use the net proceeds from the Offering primarily for the continued advancement of EP-104GI for Eosinophilic Esophagitis, including the completion of ongoing preclinical studies, and Phase 2 clinical trials, preparations for a Phase 3 clinical trial including the related regulatory submissions, and manufacturing activities, and to undertake the necessary commercial/market development activities to prepare for the eventual product launch. The Company also intends to use a portion of the proceeds to accelerate and expand its plans to pursue clinical studies with EP-104GI in multiple additional gastrointestinal indications, including in esophageal strictures and fibrostenotic Crohn’s disease. A portion of the proceeds will be allocated to research and development of additional pipeline candidates, business development initiatives, and general corporate purposes, which may include but are not limited to employee salaries, working capital, leases for facilities, administrative expenses, and capital expenditures. The Company may also use a portion of the proceeds to expand its intellectual property portfolio and strengthen its corporate infrastructure to support future growth.
Modular Medical (MODD)
- MODD closed at $.2471 after launching offering on Friday on a best-efforts basis for up to $12,000,000 of shares of their common stock. Has been trading as a diabetes‑tech name, with shares reacting to execution milestones around its Pivot tubeless patch pump platform.Earlier this month, the company began production of validation lots for its disposable cartridge and infusion set, keeping it on track for a planned commercial launch in the first quarter of 2026, contingent on FDA 510(k) clearance—an event path that positions upcoming regulatory decisions as key stock catalysts.
- Earlier this month, the company began production of validation lots for its disposable cartridge and infusion set, keeping it on track for a planned commercial launch in the first quarter of 2026, contingent on FDA 510(k) clearance—an event path that positions upcoming regulatory decisions as key stock catalysts.
FIGS, Inc. (FIGS, $15.45, +37.46% over the last 5-days)
- FIGS, the direct‑to‑consumer healthcare apparel brand, operates at the intersection of e‑commerce and specialty retail, with a loyal professional customer base and a growing product portfolio. While macro headwinds and digital‑ad volatility have pressured some consumer names, FIGS’ brand equity in the medical community and ongoing product innovation offer levers for renewed growth as conditions normalize.
- After the close today (Feb. 26), FIGS released its fourth quarter and full year 2025 financial results and published a financial highlights presentation on its investor relations highlighting the following: Exceeded Top and Bottom Line Expectations, Grew Q4 2025 Net Revenues 33.0% to a Record $201.9 Million, Achieved Q4 2025 Net Income Margin of 9.2% and Adjusted EBITDA Margin of 13.2% & Plans Low Double-Digit Net Revenues Growth and Margin Expansion in FY 2026. FIGS shares have traded up to $13.74 in the aftermarket today.
GeoVax Labs (GOVX, $1.60, +4.58% over the last 5-days)
- GeoVax announced (Feb. 24) the formation of its Oncology Advisory Board with the appointment of three internationally recognized leaders in immuno-oncology, translational medicine, and clinical development. This Advisory Board will play a central role in guiding the scientific, translational, and clinical advancement of GeoVax’s oncology program, focused primarily on Gedeptin(R), the company’s gene-directed enzyme prodrug therapeutic (GDEPT). GeoVax plans to conduct a Phase 2 trial with Gedeptin in the neoadjuvant setting, pairing it with an immune checkpoint inhibitor (ICI) in locally advanced head and neck squamous cell carcinoma. In parallel, it will be evaluating combination Gedeptin + ICI strategies across additional solid tumor indications.
- GeoVax announced on Wednesday, Feb. 18 that it has entered into an exclusive worldwide license agreement with Emory University for intellectual property covering the use of Gedeptin(R) in combination with immune checkpoint inhibitors (ICIs).
- On February 17, GOVX issued a statement endorsing the urgent call to action articulated by Rosamund Lewis, MD (WHO Head, Poxviruses Programme) and colleagues in their recently published PLOS Medicine article, “The mpox epidemic is not over: Reducing disproportionate burden in Africa and persistent global risk require a sustained response.” (https://journals.plos.org/plosmedicine/article/file?id=10.1371/journal.pmed.1004893&type=printable)
- Shares can gap sharply on any trial or regulatory update, positive or negative.
DoubleVerify (DV, $10.54, +9.91% over the last 5-days)
- DoubleVerify, the leading software platform for digital media measurement, data and analytics, today announced financial results for the fourth quarter and full year ended December 31, 2025 and highlighted the following: Increased 2025 Revenue by 14% Year-over-Year to $748.3 Million, Driven by Global Growth in Social, CTV Measurement, and Programmatic Activation, Achieved 2025 Net Income of $50.7 Million and Adjusted EBITDA of $245.6 Million, representing a 33% Adjusted EBITDA margin, & $300 Million Authorized for Share Repurchases, the Largest Amount in DoubleVerify’s History.
The InterGroup Corporation (INTG, $30.03, +8.22% over the last 5-days)
- InterGroup Corporation delivered (Feb. 17) a notably stronger quarter, highlighted by a 20% jump in total revenue to $17.3 million and a 27% surge in hotel revenue as renovated rooms returned to service and travel demand improved. The company swung from a prior-year net loss to $1.0 million in net income, with operating income more than doubling to $2.0 million, underscoring better cost control and improved operating efficiency. Management further enhanced liquidity and sharpened strategic focus by selling a non-core 12‑unit Los Angeles multifamily property, generating a meaningful gain and additional working capital while maintaining stable performance across its real estate portfolio.
Serina Therapeutics (SER, $1.80, +11.11% over the last 5-days)
- Serina Therapeutics, a clinical-stage biotechnology company advancing drug candidates enabled by its proprietary POZ Platform™ drug optimization technology, announced (Feb. 19) that the first patient has been enrolled in the Company’s Phase 1b registrational trial evaluating. The Phase 1b registrational study is designed to evaluate the safety, tolerability, pharmacokinetics, and preliminary efficacy of SER-252 in patients with advanced Parkinson’s disease whose symptoms are inadequately controlled by current standard-of-care therapies. Serina remains on track to initiate dosing during the current quarter, consistent with previously disclosed guidance.
Volato Group, Inc. (SOAR) & M2i Global, Inc. (MTWO)
- Volato and M2i Global reaffirmed their goal of closing their business combination in the first quarter of 2026, citing steady advancement through SEC review and integration planning as they move toward a combined listing. The deal, originally announced in 2025, will effectively transition Volato from a pure‑play private aviation operator into a diversified platform spanning aviation technology and critical minerals, with M2i shareholders expected to own the majority of the combined entity. Operationally, the partnership is already visible: the two companies recently initiated their first shipment of titanium ore from Western Australia to the United States from Titanium X, underscoring how the critical‑minerals vertical could become a meaningful growth engine as domestic supply‑chain security rises in strategic importance.
- On Feb. 4, M2i Global,Inc.along with Volato Group, Inc. announced that Titanium X has initiated its first shipment of titanium ore from Western Australia to the U.S. under its collaboration agreement.
NVIDIA (NVDA, $177.19)
- Nvidia delivered strong fourth-quarter results, posting revenue of $68.1 billion, well above analyst expectations. Looking ahead, the company projects $7.8 billion in revenue for the first quarter of 2026, reflecting continued robust demand for its AI chips even amid broader market headwinds.
McDonald’s (MCD, $341.06, +3.59% over the last 5-days)
- Options data around the February 2026 expiries highlight active positioning near the 300–305 strike range, consistent with expectations for steady but not explosive upside from here.
- In the run-up to World Protein Day on 27th February, McDonald’s India (West & South), owned and operated by Westlife Foodworld, is celebrating Protein Week, reinforcing its leadership in nutrition-led innovation. Making protein more accessible, affordable and customizable, Indian consumers can use the McDonald’s app to explore these nutritious offerings and avail of protein burgers starting at just INR 69. Enhancing this convenience, consumers ordering via McDelivery can also enjoy free delivery on the Protein Plus meal range.
Nokia (NOK, $7.72)
- On Feb. 26, Nokia announced that it has been selected by Telefónica for the deployment of networking solutions to support new Edge data center networks across Spain, marking a significant step forward in Telefónica’s next-generation digital infrastructure journey. Featuring high speed, ultra-low latency, and strong reliability, Nokia’s data center networking solutions will be implemented in Telefonica’s 17 new Edge nodes that deliver Artificial Intelligence (AI), B2B, and Telco Cloud services across residential, enterprise, and public sectors—reinforcing Spain’s position as a leader in advanced digital infrastructure in Europe.
- On Feb. 24, Nokia and AWS showcase industry-first agentic AI-powered network slicing with du and Orange
- Industry-first intent-based 5G-Advanced slicing with agentic AI offers telecommunication providers with premium network slicing services that respond to real-world situations and enable autonomous intelligence.
- This breakthrough innovation inferences and leverages open Internet data, including traffic, events, locations, maps and operator data for network slicing business.
- du and Orange first to explore this innovative slicing solution that adapts automatically to support customer demand.
Opendoor (OPEN, $5.42, +8.40% over the last 5-days)
- Opendoor Technologies, a leading e-commerce platform for residential real estate transactions, reported financial results for its fourth quarter and year ended December 31, 2025. They highlighted the following: October 2025 acquisition cohort tracking as best-performing October in Company history; acquisitions increased 46% quarter-over-quarter while inventory days in possession reduced 23%.
- Opendoor continues to navigate a challenging housing backdrop characterized by still‑elevated mortgage rates and tight existing‑home inventories, which weigh on transaction volumes even as affordability slowly improves. The company’s focus on disciplined acquisition spreads, inventory turns, and ancillary services remains central to the investment debate as markets handicap the pace and magnitude of any 2026 housing recovery.
The Sources
- Yahoo Finance – “Stock market today: Dow, S&P 500, Nasdaq fall to end losing month as AI worries buffet markets”
https://finance.yahoo.com/news/live/stock-market-today-dow-sp-500-nasdaq-fall-to-end-losing-month-as-ai-worries-buffet-markets-211239963.html[finance.yahoo] - CNBC – “Dow closes more than 500 points lower after hot inflation …”
https://www.cnbc.com/2026/02/26/stock-market-today-live-updates.html[cnbc] - Investopedia – “Markets News, Feb. 27, 2026: Major Indexes End Sharply Lower …”
https://www.investopedia.com/stock-market-today-dow-jones-s-and-p-500-02272026-11915796[investopedia] - Nasdaq.com – “Stock Market News for Feb 27, 2026”
https://www.nasdaq.com/articles/stock-market-news-feb-27-2026[nasdaq] - Barchart/Nasdaq – “Stocks Retreat on AI Disruption Concerns and Geopolitical Risks”
https://www.nasdaq.com/articles/stocks-retreat-ai-disruption-concerns-and-geopolitical-risks[nasdaq] - Reuters – “Wall St on course for monthly declines on AI worries, renewed tariff …”
https://www.reuters.com/business/us-stock-futures-falter-ai-jitters-nasdaq-braces-steep-monthly-fall-2026-02-27/[reuters] - Economic Times – “US stock market volatility spikes: Dow, S&P 500 and Nasdaq post worst month in 11 months …”
https://economictimes.com/news/international/us/dow-sp-500-and-nasdaq-post-worst-month-in-11-months-is-the-ai-stock-boom-losing-its-shine/articleshow/108090822.cms[economictimes] - AInvest – “Stocks Close Lower After Hotter Inflation Data, AI Turbulence Deepens February Rout”
https://www.ainvest.com/news/stocks-close-hotter-inflation-data-ai-turbulence-deepens-february-rout-2602/[ainvest] - Yahoo Finance – “Stock market today: Dow, S&P 500, Nasdaq sink after hot PPI …”
https://finance.yahoo.com/news/live/stock-market-today-dow-sp-500-nasdaq-sink-after-ppi-inflation-comes-in-hot-block-lays-out-ai-job-cuts-151119887.html[finance.yahoo] - MarketWatch – “Stock Market News, Feb. 27, 2026: Dow ends the day lower, but still …”
https://www.marketwatch.com/livecoverage/stock-market-today-dow-s-p-500-and-nasdaq-point-to-weaker-start-as-choppy-february-comes-to-a-close[marketwatch] - Reuters – “Stocks fall but set for monthly gain as investors take a breather from AI”
https://www.reuters.com/world/china/global-markets-global-markets-2026-02-27/[reuters] - Morningstar/MarketWatch – “February’s ‘panic’ rotation in stocks sets the stage for more tumult in March”
https://www.morningstar.com/news/marketwatch/20260227275/februarys-panic-rotation-in-stocks-sets-the-stage-for-more-tumult-in-march[morningstar] - Morningstar – “DAX Ends the Month 3.04% Higher at 25284.26 — Data Talk”
https://www.morningstar.com/news/dow-jones/202602278259/dax-ends-the-month-304-higher-at-2528426-data-talk[morningstar] - Nuveen – “Weekly fixed income commentary | 02/23/2026”
https://www.nuveen.com/en-us/insights/investment-outlook/fixed-income-weekly-commentary[nuveen] - BBVA Research – “Market-implied Fed rate path remains unchanged despite lower yields”
https://www.bbvaresearch.com/en/publicaciones/us-market-implied-fed-rate-path-remains-unchanged-despite-lower-yields/[bbvaresearch]
