The tech sell-off continues: the S&P 500 lost more than 1%

Concerns about the future profits of technology companies triggered a collapse in the tech industry after a restrained profitability forecast from Cisco Systems, Bloomberg writes. At the start of the trading day on February 12, the S&P 500 and Nasdaq 100 were down a little more than 1% and 1.5%, respectively. The Dow Jones was down 1.1%.

Spot gold meanwhile fell below $5,000 an ounce - down 2.3% - with the precious metal trading at $4981.8 at the time of publication.

Investors during the session switched to more cyclical segments of the market, writes CNBC. Thus, shares of Walmart and Boeing rose by 2.8% and 1.5%, respectively. While Cisco's securities collapsed by 11.5% as the company's forecast emphasized the negative impact of rising memory chip prices on the industry. The technology sector came under pressure, with securities of the "Magnificent Seven" representatives such as Apple and Amazon falling in price by about 4.3% and 2.2%, respectively.

Also, shares of software developers went into the red zone at the beginning of trading on February 12. Selling in the sector of software companies continues amid investors' concerns that the development of AI may disrupt the business models of these companies. Thus, shares of Palantir Technologies, a developer of AI for military and civilian needs capable of processing large databases, lost more than 6% on February 12, while software developer and owner of Oracle cloud service fell by more than 2%. AI agent and marketer software developer Salesforce fell more than 1%. The iShares Expanded Tech-Software Sector ETF, which tracks software companies, fell 3%.

"This rotation is largely due to the resilience of the economy," CNBC quoted Baird investment strategist Ross Mayfield as saying. - The money coming out of software is finding uses - whether it's in engineering, the financial sector or energy."

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