US equity markets fell sharply on Thursday, February 12, 2026, marking the second-worst daily performance for the S&P 500 since Thanksgiving. The downturn was primarily driven by a sell-off in technology and software sectors as investors reassessed the long-term impact of Artificial Intelligence (AI) on various industries.
Major Index Performance
|
Index |
Price |
Change |
Change |
|
S&P 500 |
6,832.76 |
-108.71 |
-1.57% |
|
DJI Average |
49,451.98 |
-669.42 |
-1.34% |
|
Nasdaq |
22,597.15 |
-469.32 |
-2.03% |
Market Drivers
- AI Disruption Concerns: Investors "punished" companies viewed as potential losers in the shift toward automation. Growth shares were particularly hard-hit, with the Nasdaq dropping more than 2% as valuation-sensitive names faced pressure.
- Earnings Disappointments: Cisco Systems fell over 12% after warning of higher expenses, while AppLovin tumbled nearly 20% on AI competition fears. Conversely, Palantir fell 4.8% despite reporting 70% revenue growth, as bearish scrutiny over its high valuation weighed on the stock.
- Economic Data: A "new housing crisis" narrative emerged after existing home sales plunged to a 16-month low in January. Additionally, initial unemployment claims came in higher than expected (227,000), further signaling a softening economy.
- Flight to Safety: As equities and cryptocurrencies dipped, investors moved capital into U.S. Treasuries, causing the 10-year yield to drop to 4.10%.
Other Asset Closures
- Commodities: Gold broke below $5,000 (dropping 3.5%), and Silver plunged over 10%. WTI Crude Oil closed lower at $62.91 per barrel.
- Volatility: The VIX (fear gauge) spiked as participants added hedges ahead of tomorrow's Consumer Price Index (CPI) report.
