Nasdaq Index: AI Fears Hit Tech Stocks as US Indices Slide Today – Forecast Analysis

• Tech sector bore the brunt with Apple falling 3%, Meta and Amazon down 2%, and Cisco Systems plunging 11% as AI concerns spread beyond just software to networking hardware
• Investors rotated into non-tech 'old economy' stocks, with Walmart gaining 3% and Boeing up 2%, while the Dow (with limited tech exposure) recently hit a record above 50,000
• Upcoming Friday consumer inflation report could trigger further volatility as markets balance AI disruption fears with Fed policy uncertainty, potentially pushing rate cut expectations from June to September or later

Market Summary: Tech Stocks Plunge on AI Disruption Concerns

Key Market Movements (February 12, 2026)

U.S. equity markets experienced sharp declines Thursday as investor focus shifted from economic data and interest rates to growing concerns about artificial intelligence disrupting traditional business models. Major indices posted significant losses:

• Dow Jones: -1.1%
• S&P 500: -1.1%
• Nasdaq Composite: -1.5%

Affected Companies and Sectors

The "Magnificent Seven" tech stocks led the selloff:

• Apple: -3%
• Meta Platforms and Amazon: -2% each
• Cisco Systems: -11%

Software and networking hardware sectors faced particular pressure amid fears that AI technology could replace existing business models and potentially increase unemployment across multiple industries.

Investor Rotation

Market participants are pivoting toward "old economy" stocks with limited technology exposure:

• Walmart: +3%
• Boeing: +2%

The Dow Jones, which has minimal tech exposure, reached a record high above 50,000 earlier in the week.

Market Implications

Analysts warn the selloff may reflect dual concerns: AI disruption fears and Federal Reserve policy uncertainty. A recent strong U.S. jobs report has solidified expectations for a June rate cut, though Friday's consumer inflation report could significantly alter this timeline if it exceeds forecasts.

The article cautions that heightened volatility will likely persist as AI spending concerns and business model disruption fears remain unresolved. Additionally, any unexpected inflation data could force investors to reprice Fed rate cut expectations, potentially pushing them to September or beyond, creating a potential "rate cut crisis."