<strong class="font-semibold text-landing-text-primary">Major indexes tumbled for a third consecutive session on February 12, 2026, as artificial intelligence disruption concerns spread across multiple sectors, driving the Dow below 50,000 and sending tech stocks sharply lower.</strong>
<p class="text-landing-text-secondary leading-relaxed mb-4">The <strong class="font-semibold text-landing-text-primary">stock market</strong> suffered another punishing session Thursday as artificial intelligence fears continued to grip Wall Street, with the Dow Jones Industrial Average plunging 669 points or 1.34% to close at 49,451.98. The benchmark S&P 500 dropped 1.57% to finish at 6,832.76, while the tech-heavy Nasdaq Composite bore the brunt of selling pressure, tumbling 2.03% to end at 22,597.15.</p>
<h2 class="text-2xl font-bold text-landing-text-primary mt-10 mb-6"><strong class="font-semibold text-landing-text-primary">Technology Sector Leads Broad-Based Decline</strong></h2>
<strong class="font-semibold text-landing-text-primary">Technology stocks</strong> spearheaded the market's third straight day of losses as investors grappled with mounting concerns over AI disruption across traditional business models. Software companies faced particularly intense selling pressure, with Palantir Technologies and Autodesk among the notable decliners as disruption worries plagued the sector throughout recent weeks.
<p class="text-landing-text-secondary leading-relaxed mb-4">The selloff intensified after several trucking and logistics firms declined on fears that new AI tools could dramatically reduce freight inefficiencies, potentially diminishing demand for industry services. This sparked broader concerns about which sectors might face similar AI-driven disruption next, creating a cascading effect across multiple market segments.</p>
<h2 class="text-2xl font-bold text-landing-text-primary mt-10 mb-6"><strong class="font-semibold text-landing-text-primary">Cisco Systems Drives Dow Weakness</strong></h2>
<strong class="font-semibold text-landing-text-primary">Cisco Systems</strong> emerged as the day's worst Dow performer, plummeting 12% after the networking equipment giant issued disappointing guidance for the current quarter. The company's tepid margin outlook signaled higher costs ahead, contributing to broader technology sector weakness and dragging the blue-chip index below the psychologically important 50,000 level.
<p class="text-landing-text-secondary leading-relaxed mb-4">Real estate and financial stocks also suffered significant losses, with commercial real estate brokers extending their decline for a second consecutive day. The broad-based nature of the selloff reflected growing investor anxiety about AI's potential to disrupt traditional business models across multiple industries.</p>
<h2 class="text-2xl font-bold text-landing-text-primary mt-10 mb-6"><strong class="font-semibold text-landing-text-primary">Asian Markets Follow Wall Street Lower</strong></h2>
<strong class="font-semibold text-landing-text-primary">Asian equity markets</strong> tracked the negative sentiment from Wall Street, with Japan's Nikkei 225 falling 1.21% to close at 56,941.97 after briefly touching 58,000 the previous day. South Korea's Kospi reversed earlier gains to finish down 0.28% at 5,507.01, ending a four-day winning streak.
<p class="text-landing-text-secondary leading-relaxed mb-4">Chinese technology stocks also faced pressure, with Alibaba declining 2.14% and Baidu dropping more than 3%. Hong Kong's Hang Seng Index fell 1.71% in its final trading hour, weighed down by basic materials stocks, while mainland China's CSI 300 lost 1.25% to close at 4,660.41.</p>
<h2 class="text-2xl font-bold text-landing-text-primary mt-10 mb-6"><strong class="font-semibold text-landing-text-primary">Market Volatility Indicators Signal Continued Uncertainty</strong></h2>
<p class="text-landing-text-secondary leading-relaxed mb-4">The <strong class="font-semibold text-landing-text-primary">VIX volatility index</strong> climbed to 20.82, reflecting heightened investor anxiety about near-term market direction. Trading volumes remained elevated across major exchanges as institutional investors reassessed portfolio positions amid the ongoing AI disruption narrative.</p>
<p class="text-landing-text-secondary leading-relaxed mb-4">Despite some pockets of strength in certain AI-focused Chinese companies, with Zhipu AI extending its rally by 16% following Thursday's nearly 30% surge, the overall market sentiment remained decidedly negative. The contrast highlighted the selective nature of AI-related investment flows, with established technology companies facing pressure while pure-play AI developers attracted continued interest.</p>
<h2 class="text-2xl font-bold text-landing-text-primary mt-10 mb-6"><strong class="font-semibold text-landing-text-primary">Economic Data and Federal Reserve Policy in Focus</strong></h2>
<p class="text-landing-text-secondary leading-relaxed mb-4">Looking ahead, investors await key economic data releases that could influence Federal Reserve policy decisions. The market's reaction to AI disruption concerns comes as traders continue to assess the central bank's monetary policy stance amid evolving economic conditions.</p>
<p class="text-landing-text-secondary leading-relaxed mb-4">The persistent selling pressure across major indexes suggests investors remain cautious about the pace of technological change and its impact on corporate earnings. Market participants are closely monitoring which industries might face similar disruption challenges, creating an environment of heightened uncertainty that has characterized trading sessions throughout the week.</p>
<strong class="font-semibold text-landing-text-primary">Mentioned tickers</strong>: CSCO, PLTR, ADSK, BIDU, 9988.HK, SPY, QQQ, DIA

# Wall Street Extends Decline as AI Fears Trigger Market Selloff

**Major indexes tumbled for a third consecutive session on February 12, 2026, as artificial intelligence disruption concerns spread across multiple sectors, driving the Dow below 50,000 and sending tech stocks sharply lower.**

The **stock market** suffered another punishing session Thursday as artificial intelligence fears continued to grip Wall Street, with the Dow Jones Industrial Average plunging 669 points or 1.34% to close at 49,451.98. The benchmark S&P 500 dropped 1.57% to finish at 6,832.76, while the tech-heavy Nasdaq Composite bore the brunt of selling pressure, tumbling 2.03% to end at 22,597.15.

## **Technology Sector Leads Broad-Based Decline**

**Technology stocks** spearheaded the market's third straight day of losses as investors grappled with mounting concerns over AI disruption across traditional business models. Software companies faced particularly intense selling pressure, with Palantir Technologies and Autodesk among the notable decliners as disruption worries plagued the sector throughout recent weeks.

The selloff intensified after several trucking and logistics firms declined on fears that new AI tools could dramatically reduce freight inefficiencies, potentially diminishing demand for industry services. This sparked broader concerns about which sectors might face similar AI-driven disruption next, creating a cascading effect across multiple market segments.

## **Cisco Systems Drives Dow Weakness**

**Cisco Systems** emerged as the day's worst Dow performer, plummeting 12% after the networking equipment giant issued disappointing guidance for the current quarter. The company's tepid margin outlook signaled higher costs ahead, contributing to broader technology sector weakness and dragging the blue-chip index below the psychologically important 50,000 level.

Real estate and financial stocks also suffered significant losses, with commercial real estate brokers extending their decline for a second consecutive day. The broad-based nature of the selloff reflected growing investor anxiety about AI's potential to disrupt traditional business models across multiple industries.

## **Asian Markets Follow Wall Street Lower**

**Asian equity markets** tracked the negative sentiment from Wall Street, with Japan's Nikkei 225 falling 1.21% to close at 56,941.97 after briefly touching 58,000 the previous day. South Korea's Kospi reversed earlier gains to finish down 0.28% at 5,507.01, ending a four-day winning streak.

Chinese technology stocks also faced pressure, with Alibaba declining 2.14% and Baidu dropping more than 3%. Hong Kong's Hang Seng Index fell 1.71% in its final trading hour, weighed down by basic materials stocks, while mainland China's CSI 300 lost 1.25% to close at 4,660.41.

## **Market Volatility Indicators Signal Continued Uncertainty**

The **VIX volatility index** climbed to 20.82, reflecting heightened investor anxiety about near-term market direction. Trading volumes remained elevated across major exchanges as institutional investors reassessed portfolio positions amid the ongoing AI disruption narrative.

Despite some pockets of strength in certain AI-focused Chinese companies, with Zhipu AI extending its rally by 16% following Thursday's nearly 30% surge, the overall market sentiment remained decidedly negative. The contrast highlighted the selective nature of AI-related investment flows, with established technology companies facing pressure while pure-play AI developers attracted continued interest.

## **Economic Data and Federal Reserve Policy in Focus**

Looking ahead, investors await key economic data releases that could influence Federal Reserve policy decisions. The market's reaction to AI disruption concerns comes as traders continue to assess the central bank's monetary policy stance amid evolving economic conditions.

The persistent selling pressure across major indexes suggests investors remain cautious about the pace of technological change and its impact on corporate earnings. Market participants are closely monitoring which industries might face similar disruption challenges, creating an environment of heightened uncertainty that has characterized trading sessions throughout the week.

**Mentioned tickers**: CSCO, PLTR, ADSK, BIDU, 9988.HK, SPY, QQQ, DIA

Major indexes tumbled for a third consecutive session on February 12, 2026, as artificial intelligence disruption concerns spread across multiple sectors, driving the Dow below 50,000 and sending tech...

Wall Street Extends Decline as AI Fears Trigger Market Selloff

More News

IBM Suffers Worst Single-Day Crash Since 2000 as Anthropic's Claude Targets COBOL Legacy Empire

Anthropic Accuses DeepSeek, Moonshot AI, and MiniMax of Industrial-Scale Claude Data Theft

Gold Surges to Three-Week High Near $5,200 as Tariff Chaos and Iran Tensions Fuel Safe-Haven Surge

Supreme Court Strikes Down Trump's Sweeping Tariffs in 6-3 Ruling

Nvidia and OpenAI Scrap $100B Megadeal, Pivot to $30B Equity Investment