Financial professionals conduct business on the trading floor of the New York Stock Exchange (NYSE) in New York City, photographed on February 13, 2026.
Credit: Spencer Platt | Getty Images
The S&P 500 registered a dip on Tuesday, as financial markets struggled to find stability after concluding another week in negative territory.
The benchmark index saw a 0.6% downturn, concurrently, the Nasdaq Composite decreased by 1%. The Dow Jones Industrial Average concluded the day 94 points lower, a 0.2% decline.
Operations at the New York Stock Exchange were suspended on Monday in recognition of Presidents’ Day.
Technology equities, including numerous underperforming software firms, spearheaded the market downturn. Meta Platforms, Nvidia, and Palantir Technologies each experienced a 1% reduction. Salesforce shares slipped 2%, while Autodesk stock fell 3%. The iShares Expanded Tech-Software Sector ETF (IGV) lost 1%, bringing its cumulative loss for the year to 22%.
The software industry has faced headwinds stemming from anxieties that advancements in artificial intelligence could potentially render many specialized software providers obsolete.
The S&P 500 has concluded its second successive week in the red, as fears of AI-induced disruption affected diverse sectors including software, real estate, trucking, and financial services. Both the S&P 500 and the blue-chip Dow posted losses exceeding 1% last week, while the tech-heavy Nasdaq Composite declined by over 2%.
Daniel Skelly, who leads the market research and strategy wealth management team at Morgan Stanley, commented, “The ‘AI disruption vigilantes’ have once again emerged, setting their sights on new targets. With the S&P 500 hovering around flat for the year, the prevailing bull market has unmistakably taken a break, giving rise instead to a bull market fueled by ‘disruption hysteria.'”
Both the Dow and S&P 500 registered their fourth weekly declines out of the last five trading periods. The Nasdaq, meanwhile, reported its fifth consecutive week in negative territory, marking its most extended losing streak since 2022.
These apprehensions largely eclipsed the recent consumer price index (CPI) figures released on Friday. The headline CPI data for January proved softer than projections from economists surveyed by Dow Jones. This development came on the heels of an employment report earlier in the week that surpassed expectations.
Market participants anticipate additional insights into the inflation trend this week, with the personal consumption expenditure (PCE) report due on Friday. Before that, investors will be examining the Federal Reserve’s meeting minutes, set for release on Wednesday.