Wall St notches monthly declines on combined AI, tariff, geopolitical uncertainty

Read more at straitstimes.com.

NEW YORK - Financial and tech stocks were hit hard by a handful of persistent investor worries on Feb 27, with US stocks suffering their largest monthly percentage declines in a year.

All three major indexes ended decisively lower and posted steep weekly declines, with the blue-chip Dow logging its biggest weekly drop since mid-November. The selloff was driven by uncertainty over costs and disruption related to artificial intelligence, revived tariff uncertainties and simmering geopolitical tensions.

The S&P 500 and the Nasdaq logged their steepest monthly declines since March 2025, while the Dow eked out its tenth straight month of gains, its longest winning streak since the ten-month run that ended in January 2018.

“To wrap up the month of February, we were reminded there are still some cracks out there,” said Mr Ryan Detrick, chief market strategist at Carson Group in Omaha, Nebraska. “Adding to the day’s weakness was the hotter inflation data, potentially pushing back on the idea of a dovish Fed later this year.”

“It’s been a rough go in February, but corporate America is looking at over a 14 per cent gain in earnings in the fourth quarter,” Mr Detrick added. “The reality is that earnings drive long-term stock gains and this was a very impressive earnings season.”

Financial stocks slid following reports that Barclays, Jefferies, Wells Fargo and other banks face potential losses related to the collapse of UK mortgage provider Market Financial Solutions, amid broader concerns about lending standards.