Global financial markets experienced a turbulent session on Thursday, February 12, 2026, as sharp losses on Wall Street, fueled by mounting anxieties surrounding artificial intelligence (AI) investments, sent ripples across international exchanges. The downturn resulted in a mixed performance for world shares, with technology stocks bearing the brunt of the sell-off.
Wall Street Plunge Driven by AI Sector Concerns
The sell-off commenced on the New York Stock Exchange, where major indices closed significantly lower. Analysts attributed the decline to a pronounced risk-off rotation among investors, who grew increasingly wary of overextended valuations in the AI and broader technology sectors. This sentiment triggered a broad-based retreat from high-growth stocks, particularly those linked to artificial intelligence development and deployment.
Impact on Canadian and International Markets
The contagion from Wall Street's losses spread to other markets, though with varied intensity. In Canada, equities were weighed down, mirroring the U.S. trend as technology stocks dragged on the major indices. Meanwhile, other global markets presented a mixed picture; some European and Asian bourses managed to pare losses or trade flat, indicating a degree of resilience or divergent local factors at play.
The market volatility underscores the heightened sensitivity of global finance to shifts in technology sector sentiment. Recent exuberance around AI breakthroughs and valuations has given way to caution, prompting investors to reassess risk exposures. This episode highlights the interconnected nature of modern financial systems, where a sell-off in one major market can swiftly influence trading patterns worldwide.
Broader Context and Investor Sentiment
This market movement occurs against a backdrop of other significant financial news. Notably, Anthropic, a major AI firm, reportedly achieved a staggering valuation of US$380 billion in its latest funding round, a figure that may have contributed to valuation concerns. Additionally, sectors like airlines faced their own challenges, with Air Transat announcing cuts to summer flights to Florida, reflecting broader economic pressures.
The day's trading activity serves as a stark reminder of the market's capacity for rapid sentiment shifts. As James Conti and other traders worked the floor of the New York Stock Exchange, they navigated a session defined by caution and recalibration. The focus now turns to whether this represents a short-term correction or the beginning of a more sustained pullback in technology-led equities.
