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US stocks fell sharply on Thursday as a sell-off in the technology sector resumed, adding to the volatility in equity markets on concerns that AI could disrupt entire industries.
The S&P 500 was 1.3 percent lower as markets suddenly fell after opening higher. The tech-heavy Nasdaq Composite retreated 1.8 percent.
The decline was led by Big Tech companies, with Apple falling 4.9 percent and Amazon and Meta both falling more than 2 percent.
Concerns in the technology sector were further heightened when Cisco’s profitability target missed investors’ expectations, sending its share price falling 11.7 per cent. It fell more than 18 percent after market close on Wednesday after AI-led mobile app development firm Applovin reported results.
US stocks have been volatile in recent weeks as investors worry that the release of more sophisticated AI tools threatens industries like software and wealth management and could potentially lead to mass layoffs.
At the same time, investors are nervous about the large-scale investments in AI by “hyperscalers” and when they are likely to deliver returns. After hitting record highs in late January, the S&P has given up almost all of its gains for the year. Nasdaq has declined by 2 percent in 2026.
Jason Borbora-Sheen, portfolio manager at asset manager Ninety One, said the decline reflected a market that was “trigger-happy” and reacting to every new “threat from AI.” “Investors may reduce risk ahead of tomorrow’s inflation data,” he said, referring to Friday’s report on US consumer prices.
The Russell 2000 small-cap index, which has benefited from investors selling big tech names in recent weeks, fell into the selloff Thursday, falling more than 2 percent.
Gold also fell along with stocks and was trading 2.9 per cent lower at $4,935 per troy ounce, while silver fell 11 per cent. The precious metals have been extremely volatile this year, hitting record highs last month before declining.
“The decline in equity markets has driven liquidations of gold to raise cash,” said James Steele, chief precious metals analyst at HSBC. Steele said a lack of Chinese demand for gold ahead of the Lunar New Year had “removed a significant amount of support from the market”.
In the other corner of the market, shares of trucking companies fell sharply on risks that AI could upend the freight brokerage business, which is the intermediary between shippers and trucks. Trucking giant CH Robinson Worldwide fell 24 percent, its worst daily performance on record.
Treasuries rose due to demand for safe assets by investors. The 10-year yield fell 0.07 percentage points to 4.11 percent, its lowest level this year. Yields move inversely to prices.
The move reversed the previous day’s selloff in Treasuries, which came after stronger-than-expected US jobs data helped investors temper their expectations of a Federal Reserve interest rate cut this year.
US inflation data on Friday could provide further clues on the potential path of rates. Economists polled by Reuters estimated that the inflation rate fell to 2.5 percent last month, from 2.7 percent in December.
