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US stocks fell sharply on Thursday as a sell-off in the technology sector reignited, extending a volatile run for equity markets buffeted by concerns that AI could disrupt entire industries.
The S&P 500 fell 1.6 per cent on Thursday, while the tech-heavy Nasdaq Composite retreated 2 per cent.
Big Tech companies led the declines, with Apple falling 5 per cent. Meta fell 2.8 per cent while Amazon gave up 2.3 per cent. SoftBank, which is heavily invested in OpenAI and other technology companies, fell 6.5 per cent in Tokyo on Friday.
Adding to worries in the tech sector, Cisco’s share price tumbled 12.3 per cent after its profitability targets missed investors’ expectations. AI-led mobile app development firm AppLovin dropped 19.7 per cent following its results after the market closed on Wednesday.
Treasuries rallied as investors sought haven assets. The 10-year yield fell 0.08 percentage points to 4.11 per cent, its lowest level this year. Yields move inversely to prices.
The rally in Treasury prices contributed to the record demand seen at auction for $25bn in 30-year bonds on Thursday. Primary dealers — big banks that are required to absorb any of the bonds not bought by investors — took the lowest percentage of the offering on record, according to BMO Capital Markets.
US markets have been volatile in recent weeks as investors worry the release of ever more sophisticated AI tools threatens to upend industries such as software and wealth management and potentially lead to large-scale lay-offs.
At the same time, investors have become nervous about the massive investment in AI by “hyperscalers” and when they are likely to deliver a return. After hitting a record high in late January, the S&P has given up nearly all its gains for the year. The Nasdaq has lost almost 3 per cent in 2026.
Jason Borbora-Sheen, a portfolio manager at asset manager Ninety One, said the drops reflected a market that was “trigger-happy” and reacting to every fresh “threat from AI”. “Investors could be de-risking ahead of tomorrow’s inflation data,” he added, referring to Friday’s report on US consumer prices.
The Russell 2000 small-cap index, which has benefited from investors dumping big tech names in recent weeks, was also caught in the sell-off, dropping more than 2 per cent on Thursday.
Gold fell along with stocks, losing 3.2 per cent to trade at $4,936 a troy ounce, while silver fell 11 per cent. Precious metals have been highly volatile this year, soaring to record highs last month before tumbling.
“The equity market decline has triggered gold liquidation to raise cash,” said James Steel, chief precious metals analyst at HSBC. Steel added that a lessening of Chinese demand for gold in the run-up to the Lunar New Year had “removed quite a bit of support from the market”.
In another corner of the market, stocks in trucking companies dropped precipitously on the risk that AI could upend the freight brokerage business, which intermediates between shippers and trucks. Trucking giant CH Robinson Worldwide dropped as much as 24 per cent.
The moves reversed the previous day’s sell-off in Treasuries, which came after stronger than expected US jobs data caused investors to rein in their expectations of Federal Reserve interest rate cuts this year.
US inflation data on Friday may offer further clues on the likely path of rates. Economists polled by Reuters are forecasting that the rate of inflation last month fell to 2.5 per cent, from 2.7 per cent in December.
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