Daily Brief - February 27, 2026 (Morning)

 ## Pre-Market Overview U.S. stock futures are trading lower ahead of the open, reflecting a cautious market mood following a sharp selloff in key indices on Friday. The S&P 500 futures are down, mirroring the 1.31% decline in the cash index, while Nasdaq 100 futures also point to further weakness after a 2.01% drop in the previous session. This suggests investors remain wary as they digest mixed earnings reports and await fresh economic data. Overnight in Asia, markets were subdued with Japanese stocks up modestly but broader regional indices showing limited gains amid ongoing concerns about inflation and geopolitical tensions. European markets opened mixed, with investors balancing upbeat corporate earnings in some sectors against persistent inflation worries. The U.S. wholesale inflation data released today will be a key focus, as core wholesale prices rose 0.8% in January, well above expectations, signaling persistent inflationary pressures. The overall sentiment heading into today’s session is cautious to negative. The energy sector is bucking the trend with a notable rally, supported by rising oil prices amid geopolitical uncertainties and supply concerns. Meanwhile, technology stocks are under pressure following disappointing earnings and margin concerns. Investors will closely watch inflation data and corporate earnings for further direction. ## Top Stories Moving Markets - **OpenAI Secures $110 Billion Funding Round** OpenAI closed a record $110 billion funding round with backing from major players including Amazon, Nvidia, and Softbank. This massive capital injection underscores the growing investor appetite for AI-related ventures and is expected to fuel further innovation and expansion in the AI sector. Stocks tied to AI infrastructure and software, such as **$NVDA** and **$DELL**, are key beneficiaries. This development may help stabilize AI-related stocks after recent volatility. - **Netflix Drops Warner Bros. Bid; Paramount Wins** Netflix has officially dropped its bid for Warner Bros., clearing the way for Paramount to acquire the studio. This resolution ended a months-long bidding war that had created uncertainty in the media sector. Netflix shares (**$NFLX**) rallied 11.27% on Friday, reflecting investor relief and renewed focus on its core streaming business. Warner Bros. Discovery (**$WBD**) shares fell 1.18%, pressured by the failed bid and restructuring concerns. - **Dell Technologies Surges on Strong AI Server Demand** Dell Technologies (**$DELL**) shares jumped 9.39% after the company reported better-than-expected Q4 results and forecasted a doubling of AI server revenue. This strong outlook highlights Dell’s positioning as a key supplier in the AI hardware market, driving optimism in the technology sector. Dell’s performance contrasts with broader tech weakness and may attract investors looking for AI exposure with solid fundamentals. - **Wholesale Prices Rise Sharply, Pointing to Persistent Inflation** January’s wholesale price index showed a 0.5% increase month-over-month, with core prices rising 0.8%, significantly above the 0.3% forecast. This data signals that inflationary pressures remain entrenched in the supply chain, which could complicate the Federal Reserve’s policy path. The inflation report will weigh on market sentiment and may increase volatility in interest rate-sensitive sectors like financials and real estate. - **CoreWeave Plunges on Margin Miss** CoreWeave (**$CRWV**) tumbled 12.61% after missing operating margin expectations in its Q4 report. The company, which provides AI cloud infrastructure, is facing margin pressure despite strong revenue growth. This setback highlights the challenges in scaling AI infrastructure profitably and may weigh on other AI-related cloud providers. ## Stocks to Watch Today - **$DELL** – Surged 9.39% on strong Q4 earnings and bullish AI server revenue outlook. Watch for continued momentum in tech hardware. - **$NFLX** – Jumped 11.27% after dropping Warner Bros. bid and refocusing on streaming growth. Positive sentiment may extend. - **$NVDA** – Fell 6.70% on profit-taking despite AI tailwinds; OpenAI funding could provide support. - **$CRWV** – Fell 12.61% after margin miss; monitor for further pressure in AI cloud infrastructure. - **$AMBA** – Dropped 11.10% post-earnings; weakness in semiconductor equipment sector. - **$AMPH** – Declined 17.77% after Q4 miss and weak sales; healthcare sector headwinds. - **$PRAA** – Soared 32.05% on strong Q4 results; healthcare specialty stock to watch. - **$FIGS** – Up 27.74% following earnings beat; apparel retail gaining investor interest. - **$PUBM** – Rose 19.76% on positive earnings; digital advertising strength. - **$ARLO** – Surged 21.75% after Q4 beat; smart home tech gaining traction. - **$BFLY** – Jumped 47.32% on earnings beat; medical device stock showing strong momentum. - **$WLDN** – Fell 11.84% after earnings miss; watch for further downside in tech. ## Sector Setup - **Technology:** Negative bias as the sector ETF (XLK) dropped 2.87%. Despite strong AI funding and Dell’s results, broad tech faces pressure from profit-taking and margin concerns, especially in semiconductor and software stocks. - **Energy:** Positioned for gains with XLE up 1.75%, supported by a 3.49% rise in oil prices. Geopolitical risks and supply constraints are driving strength in energy names. - **Healthcare:** Slightly negative with XLV down 0.58%, pressured by mixed earnings results and downgrades in specialty pharma and biotech stocks. - **Financials:** Flat to slightly negative (XLF -0.08%), with investors cautious ahead of inflation data and Fed policy signals. ## Economic Calendar & Fed Today’s key economic release is the January Producer Price Index (PPI) with a 0.5% headline increase and a 0.8% rise in core wholesale prices, both above expectations. This data will be closely scrutinized for signs of persistent inflation, which could influence Federal Reserve policy decisions. No Fed meetings are scheduled today, but markets will interpret inflation data for clues on future rate moves. ## Crypto & Commodities - Bitcoin is down 1.67% to $66,356.30, continuing a modest pullback amid risk-off sentiment. - Ethereum fell 3.14% to $1,963.96, underperforming Bitcoin and reflecting broader crypto weakness. - Gold rallied 1.39% to $480.02, benefiting from inflation concerns and safe-haven demand. - Oil surged 3.49% to $82.51, driven by geopolitical tensions and supply concerns, supporting energy sector strength. ## Trading Game Plan - Monitor inflation data closely; persistent wholesale price increases may keep rate hike fears alive and pressure growth stocks. - Favor energy stocks and related sectors benefiting from rising oil prices and geopolitical risks. - Be selective in technology: focus on names with strong AI exposure and solid earnings like **$DELL**, but avoid those with margin or growth concerns such as **$CRWV** and **$AMBA**. - Watch media and entertainment stocks for volatility around M&A developments, especially **$NFLX** and **$WBD**. - Keep an eye on healthcare specialty stocks with strong earnings beats like **$PRAA** and **$FIGS** for potential momentum plays. - Manage risk by monitoring crypto volatility and safe-haven assets like gold amid inflation uncertainty. - Upcoming earnings to watch include several small- and mid-cap names reporting today, which could add to sector-specific volatility.