Jack Pitcher

Hey, listeners, it's Saturday, February 28th.

I'm Jack Pitcher for The Wall Street Journal, and this is What's News in Markets, our look at the biggest stock moves of the week and the news that drove them.

Let's get to it.

AI was in focus once again this week, and it feels like investors don't know what to make of the rapid advancements in artificial intelligence models.

AI optimism has been one of the biggest drivers of market gains the past few years.

But in 2026, traders are thinking more about what threats it could pose.

That tension came to a head on Monday, when everyone on Wall Street was talking about a viral blog post from a small investment research firm that imagined an AI doomsday scenario for white-collar workers.

Stock indexes sold off sharply Monday, and analysts pointed to the memo as a prime culprit.

By the end of the week, indexes had posted modest declines.

The S&P 500 fell 0.4%, while the Nasdaq was 1% lower, and the Dow dropped 1.3%.

A winner has emerged in the Warner Bros.

sweepstakes, and investors on both sides are actually happy.

Netflix had previously reached an agreement to buy Warner's movie and TV studios, as well as the HBO Max streaming service.

But on Thursday, it said it would back away from its deal.

That was after Paramount Skydance came in with a higher offer of $111 billion for the entire company, which Warner said was a superior deal for shareholders.

In a statement announcing it would not raise its bid, Netflix said Warner was a quote, nice to have at the right price, not a must-have at any price.

Paramount shares soared 26% this week on the deal news.

The owner of Paramount Pictures and CBS is set to add huge properties and brands like CNN, Superman, and Harry Potter to its portfolio.

But Netflix shares also got a boost.

Some investors have been concerned the streaming giant was going to overpay for assets it didn't need.