Stocks Plummet as AI Fears Impact Tech Sector; Gold and Bitcoin Drop

Feb 13, 2026, 2:19 AM

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US stocks turned sharply lower on Thursday amid rising fears of AI-driven disruption, prompting investors to rotate out of technology shares. The Dow Jones Industrial Average fell roughly 1.3%, or over 650 points, marking the end of a three-day win streak for the blue-chip benchmark. The S&P 500 dropped 1.6%, while the tech-heavy Nasdaq Composite fell over 2% during the trading session.

Gold futures sank by 3%, and bitcoin declined to around $65,000 as investors adopted a risk-off approach. This mixed market sentiment arises as investors search for sectors vulnerable to AI disruption, which has already led to a significant decline in software stocks. Recently, trucking and logistics, along with real estate services, have been hit hard by concerns regarding the impact of artificial intelligence on these industries.

In particular, Cisco Systems saw its stock plummet over 12% due to a bleak profit outlook despite a rise in sales related to the ongoing AI buildout within Big Tech. Other notable tech companies like Nvidia, Meta, Amazon, and Apple also recorded steep losses, with Apple experiencing a drop of approximately 5%.

Attention is now shifting towards the upcoming Consumer Price Index report, set to be released on Friday. A softer reading could boost hopes that inflationary pressures are easing while economic growth remains stable. Meanwhile, weekly jobless claims data indicated a smaller decline than expected, further complicating the outlook for Federal Reserve policy. The recent strong performance in job creation, which saw the US economy adding twice as many jobs as anticipated in January, raises questions about the necessity for near-term interest-rate cuts, a key driver of recent equity gains.

On the earnings front, fast food giant McDonald's saw its shares nudge higher after reporting earnings that exceeded expectations. Looking ahead, investors are keenly watching for upcoming earnings from companies like Coinbase, Applied Materials, and Rivian, all set to release their results after the market close on Thursday.

As market participants grapple with the implications of AI on various industries, the outlook remains uncertain, particularly for technology stocks that have been at the forefront of recent volatility. The shifting investor sentiment reflects a cautious approach as they weigh the potential for disruption against the backdrop of broader economic indicators and earnings reports.

In conclusion, the current stock market turmoil underscores the broader anxieties surrounding technological advancements, particularly in AI. As investors reassess their positions, the volatility is likely to continue until clearer signals emerge regarding both inflation and growth in the labor market, which are critical for determining Federal Reserve policy moving forward.

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