OP Wire 2/28 (OP – Lite)

By Steve

Markets Eye Inflation Data as Nvidia Sell-Off Shakes AI Rally

U.S. stock futures pointed higher early Friday as investors braced for the Personal Consumption Expenditures (PCE) inflation report, the Federal Reserve’s preferred inflation gauge.

By 7:04 AM ET, futures were showing a positive trend:

Dow Jones: +139 points (+0.3%)
S&P 500: +19 points (+0.3%)
Nasdaq 100: +52 points (+0.3%)

This comes after a rough session on Thursday, where markets tumbled:

Dow Jones: -194 points (-0.5%)
S&P 500: -94 points (-1.6%)
Nasdaq Composite: -531 points (-2.8%)

Nvidia Leads the Sell-Off

The biggest drag on the market was Nvidia (NVDA), which fell 8.5%, erasing $274 billion in market value—the largest single-day market cap loss in history.

Despite strong earnings, Nvidia’s report failed to ignite another AI-fueled rally, as investors weighed rising competition from China’s DeepSeek, whose low-cost AI model is challenging AI spending trends.

Adding to market jitters, economic data pointed to potential weakness in the U.S. economy, while new trade tariff comments from Trump shook global markets.

Trump Tariffs & Trade War Concerns

Former President Donald Trump announced that delayed tariffs on Mexico and Canada will take effect March 4, alongside a 10% tariff on Chinese goods.

Additionally, Trump floated the idea of a 25% reciprocal tariff on European cars and goods, fueling concerns about a new U.S.-EU trade conflict.

Key PCE Inflation Report Ahead

Investors are watching today’s PCE inflation report, which could influence the Federal Reserve’s next moves. Expectations are:

Headline PCE (YoY): 2.5% (vs. 2.6% prior)
Core PCE (YoY): 2.6% (vs. 2.8% prior)
Core PCE (MoM): 0.3% (vs. 0.2% prior)

With the Fed pausing rate cuts last month, citing concerns about inflation and tariffs, today’s report could set the tone for future rate decisions.

Stock Movers: Dell, HP, Autodesk & Bitcoin

Dell (DELL): Down premarket as it warned of declining margins in 2026, citing rising AI infrastructure costs and potential tariff impacts on input costs.
HP (HPQ): Dropped after soft guidance, blaming rising import tariffs on China.
Autodesk (ADSK): Surged after strong Q4 earnings and an upbeat full-year forecast.
Bitcoin (BTC): Slumped, heading for a 23% decline in February, as tariff fears hit risk appetite.

Closing the Week Strong with OP & AC&I!

Shoutout to AC&I traders! Yesterday’s live stream crushed it, nailing premarket plans and stacking gains in chat.

It’s Friday, so let’s close the week strong—Secret Sauce Live Stream is on tap!

See you in chat! Stack Your Gains!

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