Stock Market Today: Tech Rout Deepens as AI Disruption Fears Spread | February 12, 2026

U.S. equities tumbled on Thursday as technology stocks led a broad sell off driven by concerns over AI profitability and weakening corporate guidance. The Dow Jones Industrial Average fell 328 points, or 0.7%. The S&P 500 dropped 1.1%. The Nasdaq Composite led losses with a 1.6% decline.

Here is what moved markets today.

The Big Story: AI Disruption Hits Wall Street

Cisco Systems crashed 12% after issuing disappointing margin guidance for the current quarter, citing rising memory chip costs. The networking giant's report raised fresh questions about whether companies spending billions on AI infrastructure are actually seeing returns.

The sell off was not limited to Cisco. An ETF tracking software companies slumped 3.1%, and every megacap tech stock closed in the red. AppLovin fell more than 4% despite beating earnings estimates, reflecting a market that is punishing even good results in the software sector.

The broader concern: AI tools are now advanced enough to replicate services offered by entire industries. Financial stocks including Morgan Stanley dropped on fears that AI could disrupt wealth management. Trucking and logistics companies sold off on similar worries. Investors are recalculating which sectors face existential pressure and which ones benefit from the AI buildout.

Vertiv stood out as a rare winner, surging 24% after posting a strong earnings beat and raising its 2026 outlook. Companies tied to physical AI infrastructure, such as data centers and power systems, continue to attract capital even as software names get crushed.

Jobs Report: Stronger Than Expected

The delayed January nonfarm payrolls report showed 130,000 new jobs, well above the 55,000 consensus estimate. The unemployment rate ticked down to 4.3%. December was revised lower to 48,000.

Under normal circumstances, a strong jobs report would be bullish. Today it had the opposite effect. Markets interpreted the data as a signal that the Federal Reserve will delay rate cuts further. According to the CME FedWatch tool, the probability of a June 25 basis point cut now sits at 93.6%, but expectations for any additional cuts this year have faded.

Art Hogan of B. Riley Wealth described the shift from last week's "Software Armageddon" to this week's jobs "bonanza," noting that the market cannot decide whether good economic data is good news or bad news for stocks.

Crypto Markets: Bitcoin Slips Below $66,000

Bitcoin dropped roughly 4% to trade near $65,900, extending its volatile range between $60,000 and $72,000 that has defined the past two weeks.

The sell off in crypto continues to track weakness in risk assets broadly. With the Nasdaq down 1.6% and software stocks in free fall, Bitcoin is behaving as a high beta proxy for tech sentiment rather than the uncorrelated hedge its advocates have long promoted.

Ethereum traded near $1,950, down approximately 3%. Solana held above $90 after testing two year lows earlier this month. Crypto mining stocks including MARA Holdings and Strategy (formerly MicroStrategy) tracked Bitcoin lower.

Wolfe Research reiterated its bearish stance, noting that the average peak to trough drawdown during Bitcoin's four year cycle is 75%, and that BTC "hasn't come close to falling that far" yet.

Gold and Commodities: Safe Haven Rotation Continues

Gold pulled back from recent highs, falling 2.8% to $4,957 per ounce, but remains up more than 60% since October 2025. Silver also sold off as commodity traders booked profits.

U.S. crude oil inventories rose by 8.5 million barrels for the week ending February 6, adding supply side pressure. Energy stocks were the lone bright spot, with the Energy Select Sector SPDR rising 2.6% on the session.

Other Headlines Worth Watching

Anthropic finalized a $30 billion funding round at a $380 billion valuation, continuing the AI arms race even as public market AI sentiment sours.

Zillow fell 17% after fourth quarter earnings disappointed, pacing for its worst session since November 2021.

IBM dropped 6.5%, making it the biggest loser on the Dow.

Kraft Heinz slipped as reports emerged that Berkshire Hathaway is formally unwinding its 28% stake in the company.

Looking Ahead

The January Consumer Price Index report is the next major catalyst. Core CPI is forecast to tick higher, which could further pressure rate cut expectations and weigh on growth oriented equities. Jobless claims data is also due, with economists expecting 225,000 initial filings.

The market finds itself at a crossroads: strong economic data is keeping the Fed on hold, AI disruption fears are rattling software valuations, and crypto markets remain trapped in a correction with no clear floor. The only consensus on Wall Street right now is that volatility is not going anywhere.

Markets data as of market close, February 12, 2026. This article is for informational purposes only and does not constitute financial advice.