Stocks tumbled Friday as hotter-than-expected producer price index data fueled inflation concerns, adding to market volatility this month. The Dow Jones Industrial Average fell 521 points, or 1.05%, to 48,977.92, while the S&P 500 and Nasdaq Composite also declined. February ended in negative territory for major indices amid mounting worries about artificial intelligence's impact on specific industries and the broader economy.

Geopolitical tensions escalated after Iran's Supreme Leader Ayatollah Ali Khamenei was killed in U.S. and Israeli strikes, prompting Iran to launch missiles and drones across the Middle East. The conflict has driven oil prices higher and boosted energy and defense stocks. This week's focus shifts to Friday's U.S. jobs report, with economists expecting payrolls to rise by 60,000 after January's stronger-than-expected gain of 130,000 jobs.

Markets will scrutinize the data for clues on the Federal Reserve's rate path, with futures pointing to a potential cut in June or July. The Fed's next move comes after Chair Jerome Powell's term ends in May and nominee Kevin Warsh could take the helm. JPMorgan strategists noted that U.S. activity remains robust despite trade headwinds, though concerns persist about labor market strength and elevated investor positioning.