Market Selloff Intensifies as Major Indexes Close Sharply Lower

U.S. equities closed sharply lower on February 12, 2026, amid growing concerns over technology sector profits and weaknesses in commodities. The Dow Jones Industrial Average lost 669.52 points, or 1.34%, to close at 49,451.9, while the S&P 500 fell by 108.71 points, or 1.57%, finishing at 3,682.76. The Nasdaq Composite dropped 469.32 points, or 2.03%, to 22,597.1, and the Russell 2000 slipped 5.39 points, or 2.03%, closing at 259.56.

Bloomberg reported that prices buckled across several asset classes as concerns over technology profits and weakness in commodities led to broader market losses. A selloff in Bitcoin deepened as traders shifted their focus away from riskier assets.

The selloff was particularly pronounced in the tech sector. The S&P 500 and Nasdaq 100 both lost 1.6% and 2%, respectively, as major technology stocks took a hit. Cisco Systems Inc. saw a dramatic 12% plunge after issuing a tepid margin outlook, signaling that higher memory-chip prices were starting to squeeze profits. A broader selloff in tech sent an ETF tracking software firms down 2.7%.

All of the megacap stocks, which had been leading the market in recent years, ended the session in the red. Despite the downturn in equities, Treasuries remained the preferred safe-haven asset.

As the market prepares for Friday’s key Consumer Price Index (CPI) report, the specter of sticky inflation continues to hang over investor sentiment. The report is expected to provide more clarity on the Federal Reserve's path for interest rates, and a hotter-than-expected CPI could deepen the current selloff, further pushing rate-cut expectations into late 2026.