Stock Market Today, Feb. 12: AI Fears Slam Markets as Nasdaq Drops 2%
Markets traded lower today as AI-related selling took its toll. The S&P 500 (SNPINDEX:^GSPC) fell 1.57% to 6,832.76, the Nasdaq Composite (NASDAQINDEX:^IXIC) dropped 2.03% to 22,597.15, and the Dow Jones Industrial Average (DJINDICES:^DJI) lost 1.34% to 49,451.98.
Market movers
Several high-profile tech names collapsed today on a mixture of AI angst and company-specific news. Cisco Systems (NASDAQ:CSCO)dropped 12.32% to $75.00 after disappointing forward revenue guidance. Palantir Technologies (NASDAQ:PLTR) fell following a bearish prediction from Michael Burry, made famous by the film The Big Short.
Supply chain and logistics player C.H. Robinson (NASDAQ:CHRW) tumbled 14.54% as AI replacement fears took hold. Defensive grocer Ingles Markets (NASDAQ:IMKTA) stood out as it notched a 52-week high.
What this means for investors
The AI apocalypse continues to pressure markets, with jitters spreading into any sector that could be unsettled by automation. That includes commercial real estate brokers, with CBRE Group (NYSE:CBRE) falling for the second day running on fears of AI disruption.
Today, Algorhythm Holdings (NASDAQ:RIME) said its AI tool could significantly scale freight volumes, prompting investors to pull away from transport and logistics firms. C.H. Robinson, Universal Logistics (NASDAQ:ULH), and RXO (NYSE:RXO) all plummeted.
There are some winners from the unfolding AI story. High-bandwidth memory (HBM) chip providers continue to gain. Micron (NASDAQ:MU), Sandisk (NASDAQ:SNDK), and Seagate Technology (NASDAQ:STX) were all in the green today.
Zooming out, yesterday’s strong jobs report put pay to hopes of Fed rate cuts in the coming months. There’s an expectation that tomorrow’s CPI release will show inflation is trending downwards.
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Annie Dean, Chief Strategy Officer at CBRE, is a member of The Motley Fool’s board of directors. Emma Newbery has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cisco Systems, Ingles Markets, Micron Technology, and Palantir Technologies. The Motley Fool recommends C.H. Robinson Worldwide and RXO. The Motley Fool has a disclosure policy.
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