The stock market suffered further sharp losses as President Donald Trump ramped up tariffs, triggering retaliation and a slew of related headlines. Relatively tame inflation reports didn't provide much solace, with investors worried that the U.S. could be quickly shifting toward a recession. The S&P 500 fell decisively below its 200-day line and entered an intermediate correction. All the major indexes set six-month lows. Delta Air Lines (DAL) and American Airlines (AAL) warnings triggered a huge sell-off. Some resilient growth stocks and even a number of defensive plays broke key support. Gold and silver shined.

Stock Market In Correction

The S&P 500 fell into a correction after plunging below its 200-day line. All the major indexes suffered another big weekly loss, hitting six-month lows. Trump tariffs and related headlines are taking a growing toll on investor and business confidence. Gold and silver stocks shined while insurers and a few other pockets held up, but selling was broad and deep.

Inflation Data May Not Please Fed

Tame consumer price index and producer price index reports in recent days unfortunately won't translate to further disinflation for the Federal Reserve's primary inflation rate, the core PCE price index. The Fed's key rate includes several PPI components that diverged from their CPI counterparts. PPI airline passenger services prices were unchanged while CPI airfares fell 4%. PPI inpatient hospital prices rose 1%, while the CPI measure rose 0.2%. The upshot is that economists expect the February core PCE price index to rise around 0.35%, pushing the 12-month core PCE inflation rate to 2.8% from 2.6% in January. Inflation data is still moving in the right direction along a bumpy path, but the latest bump comes at a bad time and might make the Fed just a bit more cautious about a resumption of rate cuts.

Airline Stocks Fall Sharply

Airline stocks generally unraveled this week after major carriers cut their outlooks. Delta Air Lines (DAL) and American (AAL) warned that domestic demand has fallen due to weakening consumer confidence amid a backdrop of macroeconomic uncertainty and trade wars. Government travel also is waning. Delta on Monday cut its Q1 earnings forecast to 30-to-50 cents per share, from 70 cents to $1 per share in January. American expects flat revenue vs. a year earlier and an adjusted per-share loss of 60-to-80 cents, both below prior targets. JetBlue Airways (JBLU) also expects a larger decline in available seat miles than its prior forecast. Delta, American and United Airlines (UAL) suffered huge losses, with JetBlue selling off as well. Southwest (LUV) was one of the lone bright spots, after it announced new revenue-generating initiatives. The airline plans to introduce bag fees, add a basic economy class, and expand its co-branded card offerings and loyalty program benefits. LUV stock advanced solidly.

Cybersecurity Stocks Diverge

Rubrik (RBRK) lost 18 cents per share versus a $1.52 per share loss a year earlier, easily beating. Revenue rose 47% to $258.1 million, solidly above estimates and the second straight quarter of accelerating growth. The data storage and security software firm also guided higher on the current fiscal year. Shares vaulted higher.

SentinelOne (S) reported Q4 earnings of 4 cents per share vs. a 2-cent loss a year earlier, both beating views. But annualized recurring revenue from subscription-based products and services just missed. Q1 and fiscal 2026 revenue guidance was light.

Adobe Cracks On Weak Outlook

Adobe (ADBE) beat estimates for its fiscal first quarter but offered mixed guidance. Adjusted EPS grew 13% while revenue rose 10% to $5.71 billion. For the current quarter, the digital media and marketing software firm guided slightly lower on earnings. Adobe also reaffirmed its fiscal 2025 guidance but those targets were below analyst estimates. Shares tumbled.

Stock Market News In Brief

Viking Holdings (VIK) reported earnings of 45 cents per share adjusted vs. a year earlier loss while revenue jumped 20.5% to $1.35 billion, both beating. For Viking's core products, operating capacity is up 12% for the 2025 season. The company has $5.3 billion in advance bookings for the season, up 26% from the same point last year. VIK stock fell sharply as travel plays broadly sold off.

Verizon Communications (VZ) warned that first quarter wireless subscriber additions could be "soft" amid intensified competition. The Dow Jones telecom giant, in a regulatory filing Tuesday, forecast more existing customers will disconnect services in Q1. It expects Q1 postpaid phone gross additions to be flat to slightly down from the prior-year same period. Shares tumbled back below a buy point, but pared losses.

Novo Nordisk (NVO) tumbled more than 9% on Monday after its experimental weight-loss drug, CagriSema, failed to top rival drug Zepbound from Eli Lilly. Over the course of 68 weeks, patients with type 2 diabetes and obesity lost 15.7% of their body weight, compared to a 3.1% loss for placebo recipients. But the results were comparable to Zepbound and lagged analysts' expectations.

Rocket Cos. (RKT), the firm behind Rocket Mortgage, agreed to buy digital real estate brokerage Redfin (RDFN) in an all-stock transaction for $1.75 billion, or $12.50 per share. Rocket expects the deal will boost adjusted EPS by 2026 and should achieve more than $200 million in run-rate synergies by 2027. RKT stock plunged but later pared weekly losses. RDFN shares vaulted higher.

Asana (ASAN) broke even in Q4 on an adjusted basis vs. a 4-cent loss a year earlier, slightly beating. Revenue rose 10% to $188.3 million, edging past views. But the work management platform guided lower on fiscal 2026, while cofounder and CEO Dustin Moskovitz plans to retire. Shares plunged.

ServiceNow (NOW) agreed to buy AI startup Moveworks for $2.85 billion, its biggest-ever acquisition. Moveworks' platform features a generative AI assistant for employee support.

Futu Holdings (FUTU) reported a 105% EPS gain with revenue up 88% to $570.6 million, a third straight quarter of accelerating growth for both. The Chinese brokerage reported strong growth in paid customers and more. FUTU stock fell within a base.

Li Auto (LI) reported a better-than-expected Q4 profit, but a 4% revenue rise to $6.1 billion slightly missed. The China EV maker guided lower on Q1 revenue and deliveries. Shares fell.