Wall Street Sinks as Tech Rout Deepens

Nasdaq slumps 2% as investors flee technology and transportation stocks amid AI disruption fears

Published on Feb. 12, 2026

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Wall Street indexes fell sharply, with the Nasdaq slumping 2%, as investors intensified their selloff of technology shares and fled transport stocks amid worries about artificial intelligence disruption. The S&P 500 and Dow Jones Industrial Average also declined as investors fled riskier sectors and placed more defensive bets.

Why it matters

The market selloff reflects growing investor concerns about the potential impact of AI on various industries, particularly technology and transportation. As companies ramp up AI investments, there are worries about which sectors will benefit from increased productivity and which will be disrupted.

The details

The broader market decline was led by a selloff in technology stocks, with the S&P 500 software index falling after Cisco Systems posted weaker-than-expected quarterly results. Transportation companies also got caught up in the AI disruption fears, with the Dow Jones Transport Average declining. The Philadelphia SE Semiconductor index also fell, and megacap tech stocks like Apple, Nvidia, and Amazon were among the biggest drags on the S&P 500.

  • The market selloff occurred on February 12, 2026.
  • The January Consumer Price Index report, which could influence the Federal Reserve's monetary policy, is due on Friday.

The players

Cisco Systems

A networking equipment provider whose less-than-impressive quarterly update helped sour the market on technology stocks broadly.

Algorhythm Holdings

An AI company that reportedly developed a new tool that made trucking companies the latest target of investor worries about AI disruption.

Equinix

The largest data-center operator, whose shares rallied after forecasting annual revenue above estimates on expectations of strong AI-linked demand.

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What they’re saying

“The broader narrative within the market is what sectors and industries can increase productivity from AI investments, and on the flip side, what industries are going to be disrupted by AI.”

— Jack Herr, Primary investment analyst at GuideStone Funds

“We're in that in-between zone between two key economic macro reports.”

— Marc Dizard, Chief investment officer at Huntington Wealth Management

What’s next

The January Consumer Price Index report, due on Friday, could influence the Federal Reserve's monetary policy and further impact the market.

The takeaway

The market selloff highlights the growing uncertainty and anxiety among investors about the potential disruption that artificial intelligence could bring to various industries, particularly technology and transportation. As companies ramp up their AI investments, the market is closely watching which sectors will benefit and which will be disrupted.