Indexes down: Dow 1%, S&amp;P 500 1.1%, Nasdaq 1.6%
Weekly jobless claims fell less than expected last week
Personal computer makers dip after peer warns of memory shortage
Cisco falls after Q2 adjusted margin misses estimates
(Updates with mid-afternoon prices, analyst comment)
By Twesha Dikshit and Purvi Agarwal
Feb 12 (Reuters) -
U.S. stock indexes fell on Thursday on a renewed selloff in software and technology shares, while strong labor market data tempered expectations for a central bank rate cut.
Fears of AI disruption have roiled Wall Street this month, slamming sectors including software, legal services and wealth management, with transport being the latest casualty.
“The broader narrative within the market is what sectors and industries can increase productivity from AI investments, and on the flip side, what industries are going to be disrupted by AI,” said Jack Herr, primary investment analyst at GuideStone Funds.
“We see this as a ‘prove it’ year for AI. We need to start seeing some return on investments.”
Software and brokerage stocks fell sharply, with the S&amp;P 500 software index (.SPLRCIS) down 2.7%, giving up almost all its gains since bouncing back from last week’s drubbing.
Atlassian (TEAM.O) and Adobe (ADBE.O) were down more than 2% each. Intuit (INTU.O) , Crowdstrike (CRWD.O) and Datadog (DDOG.O) fell between 1% and 3%.
The Dow Jones Transport Average (.DJT) lost 5.4%, with CH Robinson (ROL.N) falling 12%. Old Dominion (ODFL.O) and J.B. Hunt Transport (JBHT.O) lost 4.3% and 8.6%, respectively.
The Philadelphia SE Semiconductor index (.SOX) was down 1.7%, with Intel (INTC.O) and Advanced Micro Devices (AMD.O) slipping around 2.5% each. Marvell Technology (MRVL.O) , Broadcom (AVGO.O) and Oracle (ORCL.N) lost between 2.5% and 4%.
All “Magnificent 7” stocks posted declines, with Apple (AAPL.O) and Amazon (AMZN.O) falling 3.7% and 3%, respectively.
Recent Big Tech results have revived investor worries about ambitious capex this year, with Amazon (AMZN.O) , Google (GOOGL.O) , Meta (META.O) and Microsoft (MSFT.O) collectively expected to spend around $650 billion in the race for AI dominance.
At 11:45 a.m. the Dow Jones Industrial Average (.DJI) fell 520.09 points, or 1.04%, to 49,601.31, the S&amp;P 500 (.SPX) lost 72.75 points, or 1.05%, to 6,870.44, and the Nasdaq Composite (.IXIC) lost 357.35 points, or 1.55%, to 22,709.12.
Corporate results stayed front and center. AppLovin (APP.O) shares fell 18% after its fourth-quarter results. The marketing platform has lost nearly a third of its value in the first six weeks of the year due to intense competition.
Equinix (EQIX.O) jumped 11% after the largest data-center operator forecast annual revenue above estimates on Wednesday, betting on strong AI-linked demand. It boosted the S&amp;P 500 real estate index (.SPLRCR) 1.1%.
Cisco (CSCO.O) slumped 11% after the networking equipment provider posted quarterly adjusted gross margin below estimates.
Personal-computer makers fell after China’s Lenovo warned of shipment pressure due to a memory-chip shortage. HP (HPQ.N) and Dell Technologies (DELL.N) lost 6.4% and 9.2%, respectively.
Data released on Thursday showed weekly jobless claims decreased less than expected last week, another sign of a stable labor market. The crucial Consumer Price Index inflation report for January is due on Friday.
At least one rate cut is still expected in June, but chances of the U.S. Federal Reserve holding borrowing costs steady have risen to almost 40%, from 24.8% earlier, after Wednesday’s jobs data, according to CME Group’s FedWatch tool.
Declining issues outnumbered advancers by a 1.84-to-1 ratio on the NYSE, and by a 2.96-to-1 ratio on the Nasdaq.
The S&amp;P 500 posted 97 new 52-week highs and 26 new lows, while the Nasdaq Composite recorded 105 new highs and 221 new lows.

CSCO

TEAM

ADBE

U.S. stock indexes fell on Thursday, with the Dow down 1%, S&P 500 down 1.1%, and Nasdaq down 1.6%, driven by a selloff in tech and software shares amid concerns over AI disruption. Strong labor market data tempered expectations for a central bank rate cut. Notable declines included Atlassian and Adobe, while Cisco slumped 11% after missing margin estimates. Jobless claims fell less than expected, and the upcoming Consumer Price Index report is anticipated. Declining issues outnumbered advancers significantly on both the NYSE and Nasdaq.

- U.S. stock indexes experienced declines, with the Dow down 1%, S&P 500 falling 1.1%, and Nasdaq dropping 1.6%, driven by a selloff in technology shares and concerns over AI disruption.  
- Weekly jobless claims decreased less than anticipated, indicating a stable labor market, while expectations for a rate cut by the Federal Reserve have shifted, with a nearly 40% chance of holding rates steady.  
- The article highlights notable declines in major tech stocks, with company-specific results impacting market sentiment, particularly for Cisco and AppLovin.

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US STOCKS-Tech, software rout drags Wall St lower as markets seek returns on AI spending