Wall Street endured another bruising session Thursday as AI-related anxieties triggered a broad market selloff. Cisco led the decliners with a 12% plunge as investors worried about softening hardware and memory-chip prices impacting its outlook. The selloff spread beyond tech, hitting traditionally defensive sectors like industrials.

Technology stocks bore the brunt of the selling pressure, with AppLovin and Tyler Technologies also posting steep declines. The market rotation toward safety saw investors pile into consumer staples and utilities, the only sectors posting gains. This defensive shift signals growing concern about AI's disruptive potential across industries.

The market turbulence reflects mounting investor anxiety about artificial intelligence's impact on corporate earnings and business models. With technology leaders like Cisco warning about pricing pressures, the selloff suggests Wall Street is reassessing AI's near-term implications for corporate profitability.