Cisco Systems(US:CSCO) Xin Lang Cai Jing·2026-02-12 22:32Core Viewpoint - Major US stock indices experienced a decline, driven by sell-offs in companies threatened by artificial intelligence, with selling pressure spreading across multiple sectors [1][8]. Group 1: Market Performance - The S&P 500 index fell by 1.6%, marking its third consecutive day of decline, with most large-cap stocks, including Apple, also declining [2][9]. - The Nasdaq 100 index dropped by 2%, recording its fifth single-day decline of at least 1% in the past 10 trading days, led by technology stocks [3][10]. - The Dow Jones Industrial Average decreased by 1.3%, influenced by significant drops in transportation stocks that had previously driven the index to record highs [4][11]. - The Russell 2000 index, which had been performing well this year, also fell by 2% [5][12]. Group 2: Sector Analysis - Defensive sectors such as consumer staples and utilities showed the best performance, indicating a shift in investor sentiment towards safer investments [4][11]. - Technology stocks were notably under pressure, with Cisco experiencing a 12% drop due to concerns over hardware and storage chip prices impacting future prospects [3][10]. - The overall market theme suggests a pattern of immediate sell-offs in response to any news related to artificial intelligence, as noted by Jeffrey Favuzza from Jefferies LLC [4][11]. Group 3: Economic Indicators - Major indices opened higher initially, following a slight decrease in the number of Americans filing for unemployment benefits, but these gains were quickly reversed [6][13]. - Traders are closely monitoring an upcoming inflation report for insights into the Federal Reserve's interest rate trajectory [7][14].