US equities sold off sharply on Thursday as the “AI scare trade” widened, sending the major averages lower while investors rotated defensively and raised cash ahead of key inflation data reading or CPI.
Today in the Markets – Thursday, Feb. 12, 2026
- The Dow Jones Industrial Average dropped more than 600 points, breaking back below the psychologically important 50,000 level as AI‑related worries hit economically sensitive sectors including finance, real estate, and software.
- The S&P 500 slid roughly 1.5%–1.6%, with breadth weakening as selling pressure broadened beyond mega‑cap tech into logistics, business services, and other areas seen as vulnerable to automation risk.
- The Nasdaq Composite led the downside with a decline of about 2%, marking a third straight losing session as investors reassessed rich valuations across AI leaders and high‑multiple software names.
- Volatility picked up meaningfully, with the Cboe VIX jumping around the high‑teens in percentage terms as hedging demand increased into Thursday’s close.
Anxiety over artificial intelligence shifted from exuberance over potential productivity gains to fear over business model disruption, job losses, and margin pressure for incumbents. The sell‑off hit parts of the prior AI winners list, including semiconductors and data‑infrastructure names, but also bled into sectors such as logistics and financials where new AI tools are increasingly being framed as direct threats to existing revenue streams.
AI “Scare Trade,” Gold, Silver and Crypto
The day’s narrative centered on a growing “AI disruption” or “AI scare trade,” with investors questioning who actually captures the gains from AI and who sees earnings compressed. High‑profile AI bellwethers, including chipmakers and software platforms, faced renewed valuation scrutiny as participants weighed the possibility of slower spending or pricing pressure once efficiency gains are fully priced into enterprise budgets.
Risk assets more broadly reflected a risk‑off posture:
- Gold futures fell roughly 3%, extending a recent downdraft as capital moved toward Treasuries and cash rather than classic inflation hedges. Silver dropped 10.62%.
- Bitcoin traded near the mid‑$60,000s, off about 2%–3% on the day, as crypto again traded as a high‑beta risk proxy rather than a defensive asset.
With investors already on edge from a stronger‑than‑expected jobs report that pushed out expectations for the Federal Reserve’s first rate cut, attention turned to upcoming readings on the Fed’s preferred inflation gauge. A softer inflation print could offer near‑term relief, but for now the market tone is one of elevated uncertainty around both the economic path and the ultimate winners and losers from AI adoption.
Sector and Style Trends
- Technology and communication services were among the weakest sectors as investors took profits in prior AI leaders and high‑multiple growth names.
- Financials, real estate services, and software names tied to back‑office and white‑collar workflows also came under pressure amid growing concern that generative AI could compress fees, reduce headcount, or alter competitive dynamics.
- More defensive and “old‑economy” pockets—areas with tangible assets or less obvious AI sensitivity—saw relative outperformance as traders rotated away from high‑beta growth.
An example highlighted in coverage is Nvidia, which traded near the lower end of its recent range and well below its 52‑week high as investors questioned how sustainable peak AI demand might be if enterprise clients slow incremental infrastructure build‑outs. Similar skepticism surfaced across several other AI‑linked leaders in streaming, data analytics, and enterprise software.
VP Watchlist Updates
Eupraxia Pharmaceuticals (NASDAQ: EPRX)
Eupraxia remains a clinical‑stage GI‑focused biotech with its lead asset EP‑104GI in eosinophilic esophagitis, where Phase 1b/2a RESOLVE data showed durable tissue and symptom responses and a favorable safety profile out to 52 weeks after a single administration. The company has initiated and is expanding the randomized Phase 2b portion of RESOLVE, with plans to increase enrollment and focus on the higher 8 mg dosing cohort, and has signaled intentions to broaden EP‑104GI into additional GI indications and to deliver Phase 2b data in the back half of 2026. Recent analyst coverage set a price target in the mid to high teens per share and maintained a Buy‑oriented stance, reflecting confidence in the data package and a cash runway that extends into 2026–2028 following prior financings.
Modular Medical (NASDAQ: MODD)
Modular Medical advanced its Pivot tubeless insulin patch pump toward commercialization, announcing the start of production of validation lots for the disposable cartridge and infusion set, a key manufacturing milestone on the path to a targeted Q1 2026 launch pending 510(k) clearance. The Pivot platform is designed as a removable, tubeless 3 ml patch pump aimed at adults on multiple daily injections who have been reluctant to adopt traditional pumps due to cost and complexity, giving MODD potential leverage to expand the underpenetrated insulin‑device market if it can execute on manufacturing, regulatory, and reimbursement milestones. Despite a modest market cap and a weak Piotroski F‑score, the company currently carries more cash than debt, which may help bridge the commercialization phase if it can stay on schedule.
GeoVax Labs, Inc. (NASDAQ: GOVX)
GeoVax is a clinical‑stage vaccine and immuno‑oncology company whose lead program, GEO‑CM04S1, is in multiple Phase 2 studies targeting immunocompromised patients, chronic lymphocytic leukemia, and healthy adults needing a more durable COVID‑19 booster. The pipeline also includes Gedeptin, a gene‑directed oncolytic therapy for head and neck cancer that completed a Phase 1/2 trial and is slated for a Phase 2 study in combination with checkpoint inhibition, as well as GEO‑MVA, a Mpox/smallpox vaccine expected to move directly into Phase 3 on recent European regulatory feedback. To support development, GeoVax has used registered direct offerings and has outlined plans for unit and warrant sales, which help fund R&D but also increase share count and can pressure the stock in the near term.
flyExclusive, Inc. (NYSE American: FLYX)
flyExclusive continued to highlight a “disciplined growth” playbook in private aviation, expanding its super‑midsize Challenger 350 fleet to eight aircraft and positioning that segment as its most economically productive category across charter, jet card, and fractional programs. The company reported record preliminary Q4 and full‑year 2025 results, including expected positive adjusted EBITDA in Q4, pointing to improving utilization, operating leverage, and benefits from its vertically integrated maintenance and refurbishment platform. Management expects to add more Challengers, as well as additional XLS and CJ3 aircraft through 2026, which, if demand holds, should support further revenue growth and margin progression.
DoubleVerify Holdings Inc. (NYSE: DV)
DoubleVerify, a digital media measurement and verification name, has seen its shares consolidate in the high‑single‑digit range in early February, with recent closes around the mid‑$9 area after a stretch of elevated volatility over the past year. Despite the stock’s pullback from a 52‑week high above $23, the name still carries a consensus Buy rating from Wall Street, with analysts’ median price targets implying meaningful upside from current levels as advertisers continue to prioritize brand safety and performance measurement in a fragmented, AI‑driven ad ecosystem. Recent screeners have flagged DV alongside other digital media platforms as a stock to watch, suggesting continued institutional focus even as broader tech sentiment remains choppy.
The InterGroup Corporation (NASDAQ: INTG)
The InterGroup Corporation, a small‑cap real estate and hospitality‑focused holding company, has traded in the high‑$20s in recent sessions, with intraday ranges on February 12 spanning roughly the upper‑$28s to just under $29.50 and a latest quote near $29.49. Recent filings and commentary highlight that results for the quarter ended December 31, 2025, benefited from improved hotel metrics and gains on real estate transactions, even as the company continues to carry substantial mortgage and subordinated note obligations. With a market capitalization in the low‑$60 million range and thin trading, INTG remains a tightly held, event‑driven real estate story where periodic asset sales and refinancing activity can materially influence quarterly earnings.
Serina Therapeutics (NYSE American: SER)
Serina Therapeutics, a polymer‑based drug delivery company, recently received FDA clearance for its IND on SER‑252 after a prior clinical hold, enabling initiation of site‑level work and the formal start of its next clinical phase.
Volato Group, Inc. (NYSE American: SOAR) and M2i Global, Inc. (MTWO)
Volato and M2i Global reaffirmed their goal of closing their business combination in the first quarter of 2026, citing steady advancement through SEC review and integration planning as they move toward a combined listing. The deal, originally announced in 2025, will effectively transition Volato from a pure‑play private aviation operator into a diversified platform spanning aviation technology and critical minerals, with M2i shareholders expected to own the majority of the combined entity. Operationally, the partnership is already visible: the two companies recently initiated their first shipment of titanium ore from Western Australia to the United States from Titanium X, underscoring how the critical‑minerals vertical could become a meaningful growth engine as domestic supply‑chain security rises in strategic importance.
Fastly (FSLY, $16.04, +72.29% today)
Fastly Inc. (FSLY) on Wednesday reported a loss of $15.5 million in its fourth quarter. The San Francisco-based company said it had a loss of 10 cents per share. Earnings, adjusted for one-time gains and costs, came to 12 cents per share. The results exceeded Wall Street expectations.
McDonald’s (MCD, $332.08, +2.74%)
McDonald’s (MCD) posted stronger‑than‑expected fourth‑quarter results on Wednesday, boosted by budget‑friendly menu offerings and marketing campaigns that drove increased traffic and marked a third consecutive quarter of US sales growth.
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