The Economic Times

Dow Jones free fall today: Why did the Dow crash 800 points inflation shock, Iran war fear and AI disruption slam US stock market on the last February trading day

The Dow Jones is crashing today. It fell 800 points down 1.57% on February 27, 2026. The S&P 500 dropped 0.78% and the Nasdaq sank 0.98%. The Dow Jones free fall today came after hot US inflation data shocked Wall Street. January Producer Price Index rose 0.5%, above forecasts. Core inflation jumped 0.8%. That fueled fears the Federal Reserve will keep interest rates higher for longer. At the same time, Iran war fears pushed oil prices up nearly 3%. Rising crude adds inflation pressure. AI stocks also slipped despite strong earnings, hitting the Nasdaq and S&P 500.