The Dow Jones Industrial Average experienced a significant downturn on Thursday, February 12th, 2026, closing down 669.42 points, a 1.34% decrease. The main driver of this decline was a widespread sell-off in the technology sector, fueled by growing investor anxiety about the potential negative impacts of artificial intelligence on established software and tech companies. This concern overshadowed positive earnings reports from some corners of the market, leading to a broad-based retreat.
The tech sector was the hardest hit, with several major Dow components seeing substantial losses. Cisco (CSCO) was a significant decliner, plunging 11.95% despite reporting quarterly profits and revenue that surpassed analysts' expectations. The company's forecast suggested potentially lower profit margins in the current quarter, which analysts attributed to the rising costs of computer memory driven by the AI boom. Other notable losers in the tech space included IBM (IBM), which fell 5.05%, and Apple (AAPL), down 4.94%. The sell-off extended beyond pure-play tech, with companies like Walt Disney (DIS) also experiencing a significant drop of 5.60%.
Despite the overwhelmingly negative sentiment, a handful of Dow components managed to post gains. Defensive and consumer-oriented stocks proved to be more resilient in the face of the tech rout. Walmart (WMT) was the top performer, rising 3.33% after reporting strong earnings. McDonald's (MCD) also saw a healthy gain of 2.27%, buoyed by better-than-expected profits attributed to its value and affordability initiatives. Other gainers included consumer staples giant Coca-Cola (KO), which climbed 1.87%, and telecommunications leader Verizon (VZ), up 1.61%. These gains, however, were not enough to offset the heavy losses in the technology sector, resulting in a decidedly negative day for the Dow.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.