The tech-heavy Nasdaq Composite concluded at 22,546.67, declining by 0.2% as a result of underwhelming performance from leading AI companies. The S&P 500 experienced a modest increase of 0.1%, concluding the session at 6,836.17. Eight of the eleven broad sectors of the market index concluded the day in negative territory, whereas three sectors finished in positive territory. The Dow Jones Industrial Average fell 0.1% to close at 49,500.93 following a volatile trading session. At its intraday peak, the blue-chip index recorded an increase of 292 points. At the intraday low, the blue-chip index recorded a decline of 367.63 points. Significantly, 16 components of the 30-stock index concluded in positive territory, whereas 14 found themselves in negative territory.

The Technology Select Sector SPDR, the Financials Select Sector SPDR, the Energy Select Sector SPDR, and the Communication Services Select Sector SPDR experienced declines of 2.6%, 2%, 1.8%, and 1.8%, respectively. Conversely, the Utilities Select Sector SPDR experienced an increase of 1.5%. The CBOE Volatility Index, often referred to as the fear gauge, experienced a decline of 1.1%, settling at 20.60. On Friday, the trading volume reached 18.61 billion shares, which is below the 20-session average of 20.75 billion shares. On the NYSE, the ratio of advancers to decliners was 2.57 to 1. On the Nasdaq, the ratio of declining issues to advancing ones stood at 1.92-to-1. The Department of Labor reported that the consumer price index – commonly referred to as household inflation – increased by 0.2% month over month in January, surpassing the consensus estimate of 0.3%. The figure for the preceding month was likewise 0.3%.

In January, the headline Consumer Price Index increased by 2.4% compared to the same month last year. The metric declined to the level observed in April 2025, following the implementation of tariffs by President Donald Trump on U.S. imports. The core CPI, which excludes the more volatile food and energy categories, increased by 0.3% month over month in January, aligning with the consensus estimate. The figure for the preceding month stood at 0.2%. In January, the core CPI increased by 2.5% year over year, representing the lowest rate observed since April 2021. Tech stocks have recently experienced significant declines. Investors are shifting their focus away from technology stocks amid increasing apprehensions regarding the potential drawbacks associated with AI stocks. On Friday, the selloff persisted as concerns escalated regarding the prospects of AI stocks in relation to the substantial investments flowing into the sector.

Certain segments of the stock market have experienced declines this year due to the introduction of AI tools that pose a risk of replicating their functions or diminishing their profit margins. Financial stocks, in particular, have been under pressure due to apprehensions that AI may adversely affect wealth management operations. Shares of Morgan Stanley declined 4.8% last week. Various sectors, including media and real estate, experienced setbacks attributed to concerns surrounding AI disruption. Shares of CBRE Group Inc. CBRE has experienced a decline of 16%, while Netflix Inc. NFLX has experienced a decline of 6% year to date.