Nasdaq, S&P 500, Dow Drop as Tech Rotation Intensifies Ahead of CPI (2/12/2026)

U.S. stocks fell sharply on February 12, 2026, as investors rotated out of megacap tech stocks in anticipation of Friday’s inflation data, already tempered by a strong January jobs report. The Dow Jones Industrial Average (^DJI) declined about 1% or over 500 points, snapping a three-day winning streak. The S&P 500 (^GSPC) dropped 1.2%, and the Nasdaq Composite (^IXIC) fell nearly 2%. Cisco Systems (CSCO) fell over 11% after a cautious profit outlook overshadowed higher sales amid AI buildout. Meta (META), Amazon (AMZN), Apple (AAPL), Nvidia and Microsoft each fell more than 1%. Friday’s CPI reading will be closely watched, with a softer reading potentially supporting easing rate expectations. The weekly jobless claims report showed a smaller decline than expected, while January nonfarm payrolls added roughly twice as many jobs as anticipated, reducing the likelihood of near-term interest-rate cuts. McDonald’s (MCD) shares rose after earnings beat. Coinbase (COIN), Applied Materials (AMAT), and Rivian (RIVN) are scheduled for after-hours reports.