U.S. equity markets extended their slide on Friday, February 13, 2026, as a deepening sell-off in the technology sector overshadowed a surprisingly cool inflation report. Despite data showing that price pressures are easing faster than economists anticipated, investor anxiety regarding the long-term profitability of artificial intelligence (AI) and a significant technical setback for the world’s largest company sent major indexes into the red for a second consecutive session.
Major Market Indexes Performance
The major benchmarks struggled to find a footing throughout the day, ultimately closing near their session lows. The Dow Jones Industrial Average (DJI) fell 267.77 points, or 0.54%, to finish at 49,184.21. The S&P 500 (SPX) dropped 26.54 points, or 0.39%, to close at 6,806.22, while the tech-heavy Nasdaq Composite (IXIC) led the decline, falling 159.11 points, or 0.70%, to end at 22,438.04.
Volatility remained elevated as the CBOE Volatility Index (VIX) hovered near 20.82. While defensive sectors like Utilities and Consumer Staples saw modest gains as investors sought safety, the Information Technology and Communication Services sectors were the primary laggards.
The "AI Creative Destruction" and Tech News
The primary catalyst for the day's bearish sentiment was a sharp decline in Apple (AAPL), which plummeted 5.00%—its worst single-day performance since April 2025. The sell-off followed reports that the company’s highly anticipated AI-powered Siri upgrades have faced technical hurdles, potentially delaying key features until late 2026. This news sparked broader fears that the "AI revolution" may be more capital-intensive and slower to monetize than previously priced into equity valuations.
Other members of the "Magnificent Seven" also faced pressure. Nvidia (NVDA) fell 1.64%, Alphabet (GOOGL) declined 0.63%, and Meta Platforms (META) dropped 0.12%. Tesla (TSLA) also finished lower by 0.15%, while Amazon (AMZN) slipped 2.20%. Microsoft (MSFT) was a rare bright spot for much of the morning but ultimately succumbed to the broader trend, finishing with a marginal gain of 0.35% as it continues to integrate AI into its enterprise software suite.
In the semiconductor space, Applied Materials (AMAT) bucked the trend, surging 12% after reporting a significant earnings beat and raising its full-year outlook, citing robust demand for DRAM and advanced packaging used in AI data centers. Conversely, Pinterest (PINS) saw a 14% collapse following a weak quarterly forecast, and Cisco Systems (CSCO) dropped 12.32% on a cautious outlook.
Economic Data and Federal Reserve Outlook
The market's decline came despite a favorable Consumer Price Index (CPI) report. The Bureau of Labor Statistics reported that January inflation rose just 0.2% month-over-month and 2.4% year-over-year, coming in below the 2.5% estimate. This marks the slowest annual increase since mid-2024. While the data reinforces the case for Federal Reserve rate cuts later this year, Kansas City Fed President Jeffrey Schmid cautioned that it is "too early to bank on rising productivity" as a permanent fix for inflation.
Earnings and Corporate Developments
In other corporate news, The Wendy's Company (WEN) saw its stock jump after announcing a "Project Fresh" turnaround plan that includes closing hundreds of underperforming U.S. restaurants to focus on international growth. Moderna (MRNA) shares traded lower after the company reported a wider-than-expected quarterly loss, and Trump Media & Technology Group (DJT) remained volatile following its latest financial disclosures.
As the market closed at 4:00 PM ET, there were no major earnings announcements scheduled for the post-market session, as traders prepared for the long holiday weekend.
Upcoming Market Events
Looking ahead, U.S. markets will be closed on Monday, February 16, in observance of Washington's Birthday (Presidents' Day). When trading resumes on Tuesday, investors will focus on the New York Fed Empire State manufacturing survey and the NAHB homebuilder survey. Later in the week, the "advance" estimate for fourth-quarter GDP and the Federal Reserve's preferred inflation gauge, the Core PCE Price Index, will be the primary drivers of market sentiment.
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.