Stock markets tumbled today, February 12, 2026, dragged by tech sector woes and rising AI disruption concerns. The Dow fell around 500 points, Nasdaq dropped sharply, and broader indices like the Russell 2000 shed over 2%. This pullback echoes crypto's ongoing slump, highlighting interconnected risk-off sentiment across assets.
Stock Market Slump Drivers
Major U.S. indices closed lower amid resurfacing AI worries that threaten industry models and jobs.
The S&P 500 hovered around 6,941 while Nasdaq slipped to 23,066, pressured by tepid tech earnings like Cisco's margin outlook. Total U.S. stock market cap stands near $69 trillion as of early 2026, but today's volatility wiped out recent gains from record highs. Bond yields fluctuated post-jobs data revisions, adding downward pressure on growth stocks.
Stock options and futures markets saw heavy liquidations, with over $4.2 billion in leveraged positions wiped out across equity derivatives, mostly long bets on Big Tech unraveling amid AI skepticism and higher Treasury yields.
This mirrors crypto's cascade, amplifying the session's 1.5-2% broad market decline as margin calls forced selling.
Precious Metals Mixed Amid Uncertainty
Gold declined near $5,000 per ounce, silver dipped to about $83 despite inflation hedges. Platinum and palladium traded at $2,094 and $1,712 respectively, showing resilience in safe-havens as equities faltered. Metals' "violent unwind" earlier fueled broader risk aversion, spilling into crypto narratives.
Crypto Market Echoes the Pain
The total crypto market cap lingers around $2.3 trillion, up slightly at 0.88% today but down sharply year-to-date amid bearish pressure. Bitcoin trades near $67,000 after plunging from $126,000 highs, with market cap at $1.35 trillion.
Ethereum and Solana followed suit, hit by weak tech sentiment and miner sales. Recent perpetual futures liquidations topped $356 million, dominated by longs: BTC $196M (58% longs), ETH $140M (73% longs).
Interconnected Fallout and Outlook
Crypto's downturn ties to stock weakness via AI narrative cracks and macro tightening, with Bitcoin dominance at 58%. Fear & Greed Index hit lows, signaling extreme caution as BTC eyes $66,000 support.
For crypto traders, this deleveraging phase, rather than structural breaks, suggests potential rebounds if tech stabilizes, but volatility persists. Investors eye Fed signals and earnings for reversal cues, blending traditional and digital assets in today's risk reset.
