By Alex Eule

Worry List. The worries about software stocks -- the so-called SaaSpocalypse -- returned with a vengeance on Friday, expanding across the tech complex to chips and other hardware plays, as well.

Software as a service, or SaaS, was once the market's hottest sector, but it's been a deadweight for much of the last month. The last few days had brought a relief rally, sending the iShares Expanded Tech-Software Sector ETF up 7% from Tuesday to Thursday. Today the selling resumed. The IGV ETF, as its known by its ticker symbol, was down 1.3% on the day.

Other tech stocks were worse off, with Nvidia continuing its post-earnings descent. The chip maker fell another 4.2% today, bringing its two-day decline to 9.4%. There was no real place to hide: Apple, an AI-light hardware play, was down 3.2% while Meta Platforms, the social media giant, was down 1.3%.

Two Magnificent Seven stocks did manage to finish the day in positive territory: Amazon.com rose 1% after it signed a deal to invest $50 billion in AI start-up OpenAI. Google-parent Alphabet was up 1.4% on the day.

Friday's problems extended beyond tech, thanks to new worries about private credit and the possibility of loan defaults. The KBW Nasdaq Bank Index finished the day down 4.9% after Wells Fargo analyst Mike Mayo published a note warning of new "cockroaches," the term JPMorgan CEO Jamie Dimon used last October to warn of more likely bankruptcies after the collapse of two auto-related firms.

My colleague Connor Smith notes it was the bank index's worst day since last October:

In a note titled "More 'Cockroach' Concerns for Banks," Wells Fargo analyst Mike Mayo points to the collapse of Market Financial Solutions in London, amid "news of other credit problems among non-bank commercial players" weighing on stocks.

"The issue is one problem can mark the group negatively," Mayo writes.

As if investors didn't have enough to digest, Friday renewed the specter of inflation, as well. A hotter-than-expected producer-price-index showed wholesale prices were up 0.5% in January, an acceleration from the 0.4% rate in December. Today, at least, the bond market wasn't ruffled. Add it to next week's worry list.

Watch our TV show Fridays on Fox Business at 7:30 p.m. ET and Saturdays and Sundays at 9:30 a.m. or 10:30 a.m. ET. This week, strategist Emily Roland on why she isn't concerned about the inflation picture. Plus, big tech stocks have been hit hard. Which ones are starting to look attractive?

The Hot Stock: Dell Technologies +21.9% The Biggest Loser: United Airlines -8.7%

Best Sector: Healthcare +1.8% Worst Sector: Information Technology -2.2%

This Weekend's Magazine

The Calendar

With fourth-quarter earnings season almost in the books, investors will be looking for a new catalyst for stocks to break out of their range. Perhaps it will come from an update on the labor market.

Next Friday, the Bureau of Labor Statistics releases the jobs report, returning to its normal release schedule for the first time since early September. Other economic data on the week include the Institute for Supply Management's Manufacturing Purchasing Managers' Index, released on Monday, and the Services PMI, announced on Wednesday.

Only about 30 S&P 500 companies are set to report in March, but that includes results from some heavyweights next week. CrowdStrike Holdings and Target announce quarterly results on Tuesday, followed by Broadcom on Wednesday and Costco Wholesale on Thursday.

-- Dan Lam

What We're Reading Today

   -- Insider Trading Is Shaping Prediction Markets. Polymarket Sees an Edge. 
 
   -- AI and Tech Stocks Are in Trouble. Look to These Other Sectors, Says This 
      Veteran Strategist. 
 
   -- Five U.S. Senators Warn of 'Significant Weakening' at CFTC 
 
   -- AI Is Sliding and Everything Else Has Run Up. Here Are 6 Stocks That Look 
      Like Buys. 
 
   -- And this weekend's cover story: Tech Giants Are Paying Up to Power AI. 
      These Utilities Will Be Big Winners. 

Join Barron's Live on Monday at noon. Stocks have churned through the first two months of 2026, but the market has made little headway as investors grapple with the future of the AI trade, tariffs, interest rates, and more. Barron's Senior Managing Editor Lauren R. Rublin speaks with Ben Levisohn, Barron's new editor in chief, about stocks and sectors in the news, and where to find bargains now.

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February 27, 2026 19:55 ET (00:55 GMT)

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