US close: Stocks drop sharply on home sales data, AI fears
By Benjamin Chiou
Date: Thursday 12 Feb 2026
(Sharecast News) - US stocks quickly erased early gains to sink sharply into the red as disappointing housing data and ongoing fears about an AI bubble eroded market sentiment.
The Dow fell 1.3%, the S&P 500 dropped 1.6% and the Nasdaq tanked 2.0%.
Markets fell for the second straight day after an initial positive reaction to January's stronger-than-expected payrolls quickly faded as investors pushed back their rate cut projections.
"Caught between payrolls and CPI, US markets have found themselves unable to maintain momentum," said Chris Beauchamp, chief market analyst at IG. "US stocks are still failing to offer much in the way of compelling risk-reward, especially as AI fear continues to move from sector to sector."
Data released shortly after the open revealed that monthly US home sales dropped at their sharpest rate in nearly four years. Existing home sales fell 8.4% to an annualised rate of 3.91m in January, well below the 4.18m expected by analysts, hitting the lowest level since September 2024.
"The below-normal temperatures and above-normal precipitation this January make it harder than usual to assess the underlying driver of the decrease and determine if this month's numbers are an aberration," said Lawrence Yun, the chief economist of the National Association of Realtors.
In other US data news, initial weekly jobless claims fell by 5,000 to 227,000 last week, slightly ahead of forecasts for a reading of 222,000. Continuing claims, on the other hand, rose to 1.86m, exceeding expectations of 1.85m, while the four-week moving average, which aims to smooth out week-to-week volatility, increased by 7,000 to 219,500.
Market participants were also looking ahead to Friday's consumer price index, which may indicate the kind of progress the central bank needs to rebalance its dual mandate. CPI was expected to have ticked up 0.3% month-on-month in January, unchanged from December, while core CPI was also seen 0.3% higher last month, up from 0.2% in the previous month.
Cisco tanks after earnings, Apple falls
Shares in Cisco Systems fell 14% after quarterly numbers from the US networking equipment giant failed to win over investors. Posting second-quarter numbers after the close on Wednesday, net income rose to $3.18bn from $2.43bn, but the adjusted gross margin missed market expectations, as the rapid build-out of high-margin artificial intelligence infrastructure caused global demand for memory chips to spike and prices to jump.
Apple dropped 5% after Bloomberg reported that an eagerly anticipated Siri assistant upgrade could be delayed due to testing issues. Instead of a March release, Apple is now expected to spread Siri updates out in stages, starting in May.
Delivery and logistics giant FedEx edged higher after saying it is expecting to grow its top line by $13bn over the next three financial years as it laid out plans to ramp up digital transformation and upgrade its network over the medium term. FedEx said it is targeting revenues of around $98bn by the fiscal year ending 31 May 2029, excluding the FedEx Freight business, up from an estimated $85bn this year.
Crocs shares surged 17% after the footwear group reported fourth-quarter results that beat expectations and issued full-year guidance ahead of Wall Street forecasts, despite a decline in revenue and profit.
American-Canadian fast-food giant Restaurant Brands International beat forecasts with its fourth-quarter revenue, though shares fell 6% after net profits slumped to $113m, less than half the $259m reported in the fourth quarter of 2024, due to higher supply chain costs.
Meanwhile, McDonald's rose after fourth-quarter results topped analysts' forecasts, with net revenues rising 10% to $7bn. The company also said 2026 was "off to a strong start".
Dow Jones - Risers
McDonald's Corp. (MCD) $330.26 2.74%
Unitedhealth Group Inc. (UNH) $283.48 1.96%
Johnson & Johnson (JNJ) $245.06 1.53%
Boeing Co. (BA) $238.70 1.30%
Amgen Inc. (AMGN) $366.20 1.20%
3M Co. (MMM) $174.69 1.02%
Verizon Communications Inc. (VZ) $49.57 1.00%
Procter & Gamble Co. (PG) $161.45 0.76%
Coca-Cola Co. (KO) $78.99 0.51%
Salesforce.Com Inc. (CRM) $184.54 0.23%
Dow Jones - Fallers
Cisco Systems Inc. (CSCO) $75.00 -13.56%
Walt Disney Co. (DIS) $102.58 -5.31%
Apple Inc. (AAPL) $261.73 -5.30%
International Business Machines Corporation (CDI) (IBM) $259.27 -4.87%
Goldman Sachs Group Inc. (GS) $906.53 -4.24%
Dow Chemical Co. (DOW) $32.85 -3.97%
American Express Co. (AXP) $343.12 -3.16%
Microsoft Corp. (MSFT) $401.84 -2.77%
JP Morgan Chase & Co. (JPM) $302.67 -2.63%
Caterpillar Inc. (CAT) $760.12 -2.16%
S&P 500 - Risers
Ipg Photonics Corp. (IPGP) $150.20 35.71%
Nektar Therapeutics (NKTR) $71.00 13.82%
Equinix, Inc. (EQIX) $957.87 11.80%
Akamai Technologies Inc. (AKAM) $104.51 10.09%
Motorola Solutions Inc (MSI) $454.78 7.67%
Affiliated Mgrs Group (AMG) $324.97 6.77%
Verisk Analytics Inc. (VRSK) $178.80 6.00%
International Flavors & Fragrances Inc. (IFF) $81.93 5.89%
Iron Mountain Inc (New) (IRM) $105.49 5.77%
Lincoln National Corp. (LNC) $40.58 5.64%
S&P 500 - Fallers
TripAdvisor Inc. (TRIP) $10.31 -19.60%
Baxter International Inc. (BAX) $18.76 -16.02%
CH Robinson Worldwide Inc (CHRW) $167.78 -15.88%
Cisco Systems Inc. (CSCO) $75.00 -13.56%
Cognizant Technology Solutions Corp. (CTSH) $65.83 -10.67%
Carmax Inc. (KMX) $40.67 -10.57%
Rollins Inc. (ROL) $59.03 -10.53%
Take-Two Interactive Software Inc. (TTWO) $190.43 -9.62%
FMC Corp. (FMC) $14.57 -9.47%
Albemarle Corp. (ALB) $159.54 -9.41%
Nasdaq 100 - Risers
T-Mobile Us, Inc. (TMUS) $214.68 12.19%
Verisk Analytics Inc. (VRSK) $178.80 6.00%
Dollar Tree Inc (DLTR) $128.49 5.01%
Seagate Technology Plc (STX) $431.17 4.62%
Regeneron Pharmaceuticals Inc. (REGN) $783.97 4.53%
Biogen Inc (BIIB) $195.47 3.43%
Micron Technology Inc. (MU) $413.97 3.36%
Costco Wholesale Corp. (COST) $998.85 2.76%
Mondelez International Inc. (MDLZ) $61.87 2.73%
Sirius XM Holdings Inc (SIRI) $21.70 2.31%
Nasdaq 100 - Fallers
Cisco Systems Inc. (CSCO) $75.00 -13.56%
Qvc Group Inc Series A (QVCGA) $3.33 -10.96%
Cognizant Technology Solutions Corp. (CTSH) $65.83 -10.67%
Take-Two Interactive Software Inc. (TTWO) $190.43 -9.62%
Check Point Software Technologies Ltd. (CHKP) $164.47 -8.59%
Wynn Resorts Ltd. (WYNN) $107.85 -8.37%
Autodesk Inc. (ADSK) $223.49 -8.25%
eBay Inc. (EBAY) $79.41 -7.51%
American Airlines Group (AAL) $14.03 -6.87%
Netflix Inc. (NFLX) $75.86 -6.58%
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