US stocks fall sharply as tech sell-off resumes

US stocks fall sharply as tech sell-off resumes on x (opens in a new window)US stocks fall sharply as tech sell-off resumes on facebook (opens in a new window)US stocks fall sharply as tech sell-off resumes on linkedin (opens in a new window)US stocks fall sharply as tech sell-off resumes on whatsapp (opens in a new window) Save US stocks fall sharply as tech sell-off resumes on x (opens in a new window)US stocks fall sharply as tech sell-off resumes on facebook (opens in a new window)US stocks fall sharply as tech sell-off resumes on linkedin (opens in a new window)US stocks fall sharply as tech sell-off resumes on whatsapp (opens in a new window) Save Kate Duguid in New York and Emily Herbert and Ian Smith in LondonPublishedFebruary 12 2026UpdatedFebruary 12 2026Jump to comments sectionPrint this pageStay informed with free updatesSimply sign up to the US equities myFT Digest -- delivered directly to your inbox.US stocks fell sharply on Thursday morning as a sell-off in the technology sector reignited, extending a volatile run for equity markets buffeted by concerns that AI could disrupt entire industries. The S&P 500 lost 1.1 per cent as markets abruptly dropped after opening higher. The tech-heavy Nasdaq Composite lost 1.5 per cent. Big Tech companies led the declines, with Apple down 4.2 per cent, and Amazon and Meta both losing more than 2 per cent.Adding to worries in the tech sector, Cisco’s share price tumbled 11.8 per cent after its margin targets missed investors’ expectations. AI-led mobile app development firm AppLovin dropped more than 18 per cent following its results after the market closed on Wednesday. US stocks have been volatile in recent weeks as investors worry the release of ever more sophisticated AI tools has threatened to upend industries such as software and wealth management and potentially lead to large-scale lay-offs. At the same time, investors have become nervous about the massive investment in AI by “hyperscalers” and when they are likely to deliver a return. After hitting a record high in late January, the S&P has now given up nearly all its gains for the year. The Nasdaq has lost 2 per cent in 2026. Jason Borbora-Sheen, a portfolio manager at asset manager Ninety One, said the drops reflected a market that was “trigger-happy” and reacting to every fresh “threat from AI”. “Investors could be de-risking ahead of tomorrow’s inflation data,” he added.The Russell 2000 small-cap index, which has benefited from investors dumping big tech names in recent weeks, was also caught in the sell-off, dropping more than 2 per cent on Thursday. Gold fell along with stocks, losing 2.3 per cent to trade at $4,961 a troy ounce, while silver fell 8 per cent. Precious metals have been highly volatile this year, soaring to record highs last month before tumbling.“The equity market decline has triggered gold liquidation to raise cash,” said James Steel, chief precious metals analyst at HSBC. Steel added that a lessening of Chinese demand for gold in the run-up to the lunar new year had “removed quite a bit of support from the market”.Treasuries rallied as investors sought safe assets. The 10-year yield fell 0.06 percentage points to 4.12 per cent, its lowest level this year. Yields move inversely to prices. The moves reversed the previous day’s sell-off in Treasuries, which came after stronger-than-expected US jobs data caused investors to rein in their expectations of Federal Reserve interest rate cuts this year.Inflation data on Friday may offer further clues on the likely path of rates. Economists polled by Reuters are forecasting that the rate of inflation last month fell to 2.5 per cent, from 2.7 per cent in December. Reuse this content (opens in new window) CommentsJump to comments sectionPromoted Content Follow the topics in this article Trump tariffs Add to myFT Asia-Pacific equities Add to myFT Gold Add to myFT US Treasury bonds Add to myFT US equities Add to myFT CommentsUS stocks fell sharply on Thursday morning as a sell-off in the technology sector reignited, extending a volatile run for equity markets buffeted by concerns that AI could disrupt entire industries. The S&P 500 lost 1.1 per cent as markets abruptly dropped after opening higher. The tech-heavy Nasdaq Composite lost 1.5 per cent. Big Tech companies led the declines, with Apple down 4.2 per cent, and Amazon and Meta both losing more than 2 per cent.Adding to worries in the tech sector, Cisco’s share price tumbled 11.8 per cent after its margin targets missed investors’ expectations. AI-led mobile app development firm AppLovin dropped more than 18 per cent following its results after the market closed on Wednesday. US stocks have been volatile in recent weeks as investors worry the release of ever more sophisticated AI tools has threatened to upend industries such as software and wealth management and potentially lead to large-scale lay-offs. At the same time, investors have become nervous about the massive investment in AI by “hyperscalers” and when they are likely to deliver a return. After hitting a record high in late January, the S&P has now given up nearly all its gains for the year. The Nasdaq has lost 2 per cent in 2026. Jason Borbora-Sheen, a portfolio manager at asset manager Ninety One, said the drops reflected a market that was “trigger-happy” and reacting to every fresh “threat from AI”. “Investors could be de-risking ahead of tomorrow’s inflation data,” he added.The Russell 2000 small-cap index, which has benefited from investors dumping big tech names in recent weeks, was also caught in the sell-off, dropping more than 2 per cent on Thursday. Gold fell along with stocks, losing 2.3 per cent to trade at $4,961 a troy ounce, while silver fell 8 per cent. Precious metals have been highly volatile this year, soaring to record highs last month before tumbling.“The equity market decline has triggered gold liquidation to raise cash,” said James Steel, chief precious metals analyst at HSBC. Steel added that a lessening of Chinese demand for gold in the run-up to the lunar new year had “removed quite a bit of support from the market”.Treasuries rallied as investors sought safe assets. The 10-year yield fell 0.06 percentage points to 4.12 per cent, its lowest level this year. Yields move inversely to prices. The moves reversed the previous day’s sell-off in Treasuries, which came after stronger-than-expected US jobs data caused investors to rein in their expectations of Federal Reserve interest rate cuts this year.Inflation data on Friday may offer further clues on the likely path of rates. Economists polled by Reuters are forecasting that the rate of inflation last month fell to 2.5 per cent, from 2.7 per cent in December.