Stocks dropped on Thursday as investors began to worry about the negative side of the artificial intelligence buildout, which threatens to disrupt the business models of whole industries and raise unemployment.
The Dow Jones Industrial Average
shed 669.42 points, or 1.34%, to end at 49,451.98. The index was led lower by Cisco Systems
, which slid 12% after the maker of networking hardware such as switches and routers issued disappointing guidance for the current quarter. The S&P 500
dropped 1.57% and closed at 6,832.76, while the Nasdaq Composite
lost 2.03% and settled at 22,597.15.
Certain pockets of the stock market have been hit this year on the release of AI tools that could replicate their businesses — or at least eat away at their profit margins.
Financial stocks such as Morgan Stanley
came under pressure on fears that AI would disrupt wealth management businesses, while shares of trucking and logistics companies such as C.H. Robinson
plummeted 14% on fears that AI would streamline freight operations, thereby weighing on certain revenue lines.
https://www.cnbc.com/2026/02/11/stock-market-today-live-updates.html
Real estate stocks have become the latest victim of the artificial-intelligence threat.
Commercial real estate brokers are selling off for a second straight day. CBRE
closed nearly 9% lower on Thursday, after tumbling more than 12% earlier in the session. Jones Lang LaSalle
closed down 7.6% and Hudson Pacific Properties
shed nearly 4%. In addition, Newmark
and BXP
both slipped more than 4%, while SL Green Realty
dropped about 5%.
“We believe investors are rotating out of high-fee, labor-intensive business models viewed as potentially vulnerable to AI-driven disruption,” Jade Rahmani, an analyst at Keefe, Bruyette & Woods, said in a note Wednesday.