U.S. Stock markets experienced a broad sell-off Thursday, with the Dow Jones Industrial Average falling 592.58 points, closing at 48,908.72, according to CNBC reporting. The declines followed a session where fears of disruption from artificial intelligence prompted investors to move away from technology stocks.
The S&P 500 lost 1.23%, finishing the day at 6,798.40, and ended the week in negative territory for the year. The Nasdaq Composite saw a steeper decline, dropping 1.59% to settle at 22,540.59. The downturn comes after the Dow had briefly gained ground earlier in the week, snapping a three-day winning streak on Wednesday, as reported by Yahoo Finance.
Alphabet’s earnings report contributed to the market’s downward trend, with the company projecting a substantial increase in artificial intelligence spending – potentially reaching $185 billion in capital expenditures for 2026. Shares of the tech giant fell 0.5% on the news. Broadcom, however, saw a modest increase of almost 1% following the announcement, suggesting some investors anticipate benefits from the AI buildout.
Qualcomm also faced pressure, with its stock sliding over 8% after issuing a weaker-than-expected forecast, citing a global memory shortage. Major tech companies including Nvidia, Meta, Amazon, and Apple all experienced significant losses, with Apple falling around 5%, according to Yahoo Finance data from February 12, 2026.
The sell-off extended beyond equities, impacting cryptocurrency markets as well. Bitcoin fell below $64,000 after earlier dropping under the $70,000 support level. Gold futures also sank, declining by 3%, as investors adopted a risk-off approach, according to Yahoo Finance.
Stephen Tuckwood, director of investments at Modern Wealth Management, suggested the increased capital expenditure announcements from tech companies could be viewed positively, indicating a healthy market capable of discerning winners and losers in the AI landscape. “The fact that some of these companies do release and they announce just additional capex spending — and it is astronomical at this point — we’re actually viewing that as a positive sign for the market’s health in general, because … It’s more that the market is discerning at this point rather than just irrational exuberance,” Tuckwood said.
Investors are now awaiting the release of the Consumer Price Index report on Friday, hoping for clues about potential interest rate cuts. A softer reading could bolster expectations that price pressures are easing even as economic growth remains stable.
