U.S. stock markets experienced a sudden and severe sell-off. Overnight, the three major indices fell sharply, with the Dow Jones Industrial Average dropping over 700 points at one point and the Nasdaq declining more than 2%. Large-cap technology stocks were hit hard, while the VIX volatility index surged over 18%. Analysts noted that concerns about the disruptive impact of artificial intelligence (AI) continued to weigh on sentiment, leading to steep declines across financial, real estate, trucking, and related logistics stocks.

At the same time, gold and silver prices also fell sharply. Spot gold dropped more than 4%, while spot silver plunged over 11%. Industry experts suggested the decline resembled a risk-off event, where even traditional safe-haven assets like gold are sold by investors in need of liquidity during periods of extreme market stress.

U.S. stocks fell across the board on February 12, as worries over AI's disruptive potential intensified. By the close, the Dow had fallen 669 points, or 1.34%, the S&P 500 dropped 1.57%, and the Nasdaq declined 2.03%.

Major tech stocks broadly declined. Apple fell 5%, erasing its year-to-date gains, following reports that its upgraded Siri project faced further delays, with some AI features potentially pushed back to May. Broadcom dropped over 3%, while Amazon, Meta, and Tesla each fell more than 2%. Nvidia declined over 1%, and Microsoft and Google posted modest losses.

The AI-driven sell-off also hit the financial sector. Morgan Stanley fell over 6% intraday before closing down 4.88%. Citigroup dropped more than 5%, Goldman Sachs declined over 4%, Wells Fargo fell more than 3%, and JPMorgan Chase and Bank of America both dropped over 2%.

Fears of AI disruption spread to real estate, with concerns that higher unemployment could reduce demand for office space. CBRE plunged over 15% during the session before closing down 8.84%, while SL Green Realty fell nearly 5%.

Trucking and logistics stocks also suffered heavy losses. The Russell 3000 Trucking Index dropped as much as 7%. Logistics firm C.H. Robinson plummeted over 20% intraday, while Expeditors International and Landstar System both fell nearly 20% on worries that AI could optimize freight operations and reduce certain revenue streams.

Additionally, AI advertising technology company Applovin saw its shares drop nearly 20% after reporting fourth-quarter 2025 results and guidance. Although key metrics exceeded market expectations, they were insufficient to ease recent concerns about AI-related disruptions.

Amid the turmoil, investors shifted into more defensive sectors. Consumer staples and utilities indices both rose over 1%, pushing the consumer staples sector to a record closing high.

U.S.-listed Chinese stocks also declined broadly, with the Nasdaq Golden Dragon China Index falling 3%. Tencent Music dropped over 10%, Trip.com fell more than 6%, and Pinduoduo, Bilibili, and Baidu each declined over 4%. Alibaba fell more than 3%, while JD.com, Nio, XPeng, Li Auto, and Pony.ai all dropped over 2%.

Jay Woods, Chief Market Strategist at Freedom Capital Markets, commented, "AI was the sole driver that pushed these stocks to extreme, though not entirely unreasonable, valuations. Now it's become the factor holding them back."

Ed Yardeni, President of Yardeni Research, added, "Investors are currently very nervous about AI's impact, focusing more on its disruptive side."

Meanwhile, precious metals led by gold and silver also sold off heavily. Spot gold fell more than 4%, and spot silver plunged over 11%, closing down 3.17% and 10.73%, respectively. COMEX gold futures declined 3.08%, while silver futures dropped 10.62%.

Analysis pointed out that metals prices fell abruptly during the AI-induced stock sell-off, as some investors likely exited commodity positions, including metals, to raise liquidity, while others moved into U.S. Treasuries for safety.

An industry insider noted, "This sell-off looks more like a risk-off event. During periods of extreme market stress, even safe-haven assets like gold can be sold by investors urgently needing liquidity. For gold and silver, trading remains largely driven by sentiment and momentum."

Part of the selling in gold and silver on Thursday also reflected profit-taking, following a rapid rise fueled in part by speculative buying.

Despite the recent downturn, many analysts still expect gold to resume its upward trend, citing persistent drivers such as geopolitical tensions, questions about Federal Reserve independence, and a broader shift away from traditional assets like currencies and sovereign bonds. J.P. Morgan Private Bank forecasts year-end gold prices between $6,000 and $6,300 per ounce, while Deutsche Bank and Goldman Sachs maintain bullish outlooks.