Why Is the Stock Market Down Today, 2/27/26?

2026-02-27 17:57:54

Abstract generation in progress

Both the S&P 500 (SPX) and the Nasdaq 100 (NDX) are trading lower on Friday as investors digest inflation data from the Bureau of Labor Statistics (BLS).

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In January, the U.S. Producer Price Index (PPI) rose for a fourth consecutive month to 0.5%, the highest since October and topping the consensus estimate of 0.3%. On an annual basis, prices increased by 2.9%, also above the estimate of 2.6%. PPI is a closely tracked inflation metric, as some of its components flow into the personal consumption expenditures (PCE) index, which is the Fed’s preferred gauge of inflation.

UBS Downgrades U.S. Stock Market

Meanwhile, UBS UBS -0.81% ▼ downgraded American equities to “benchmark” in a fully invested global equity portfolio, citing factors including weakness in the dollar, slowing corporate buybacks, high valuations, and diversification outside of the U.S.

“The buybacks yield is no longer exceptional and this had been an important driver of funds flow, EPS and valuation,” wrote UBS Head of Global Equity Strategy Andrew Garthwaite in a note.

UBS has a 2026 S&P 500 price target of 7,500, implying upside of about 9% from current levels. However, the target is still lower than the average Wall Street estimate of 7,629.

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