Cisco Triggers Tech Selloff, VIX Spikes 16%: What's Moving Markets Thursday?

A volatile Thursday rattled Wall Street, with technology and software stocks sliding across the board after a cautious margin outlook from Cisco Systems Inc. (NASDAQ:CSCO) reignited concerns about profit durability in the AI trade.

Despite topping earnings and revenue expectations, Cisco shares tumbled more than 11% — their worst single-day drop since May 2022 — as investors fixated on softer forward guidance.

The iShares Tech-Expanded Software Sector ETF (NYSE:IGV), widely viewed as a barometer for AI-disruption risk, sank 3.7%, revisiting lows touched just last week.

AppLovin Corp. (NASDAQ:APP) plunged 18% even after beating estimates, with underwhelming guidance once again overshadowing headline results. The stock is now down 45% year to date, ranking among the weakest performers in the IGV basket.

Robinhood Markets Inc. (NASDAQ:HOOD) — one of the emblematic winners of the AI-fueled rally — slid 9%, on pace for its worst two-day selloff since the tariff shock triggered by President Trump in April 2025.

Pressure also mounted in hardware. A deepening global memory and storage crunch rippled through the sector after Lenovo warned of worsening chip shortages that could hit PC shipments. Dell Technologies Inc. (NASDAQ:DELL) dropped 10%, while Apple Inc. (NASDAQ:AAPL) fell 5%, marking its sharpest decline since "Liberation Day."

In contrast, memory producers continued their relentless rally on tightening supply dynamics. Seagate Technologies Inc. (NASDAQ:STX) rose 8%, Western Digital Corp. (NASDAQ:WDC) gained 6%, and Sandisk Corp. (NASDAQ:SNDK) advanced 4.5%.

By midday in New York, the Nasdaq 100 was down 1.7%, while the S&P 500 and Dow Jones Industrial Average each lost 1.2%. Small caps underperformed, with the Russell 2000 sliding 2.4%.

Volatility spiked, with the VIX jumping 16%. Investors rotated into defensive sectors, with utilities and consumer staples outperforming amid the risk-off tone.

Commodities were not spared. Gold fell 2.7%, slipping back below $5,000 an ounce, while silver plunged more than 8% to $77.

Crude oil also retreated sharply, with WTI down 3% on rising expectations of a potential U.S.–Iran deal that could ease geopolitical risk premiums.

In crypto markets, Bitcoin (CRYPTO:BTC) extended its slide, falling 2% to $65,000 and heading toward a fourth consecutive session of losses.

Thursday’s Performance In Major US Indices, ETFs

According to Benzinga Pro data:

• The Vanguard S&P 500 ETF (NYSE:VOO) fell 1.17% to $628.92.
• The SPDR Dow Jones Industrial Average (NYSE:DIA) moved -1.17% to $495.47.
• The tech-heavy Invesco QQQ Trust Series (NASDAQ:QQQ) eased -1.63% to $603.14.
• The iShares Russell 2000 ETF (NYSE:IWM) traded at $259.30, down 2.13%.
• The Utilities Select Sector SPDR Fund (NYSE:XLU) outperformed, up 1.9%; the Technology Select Sector SPDR Fund (NYSE:XLK) lagged, down 2.2%.

Russell 1000's Top 5 Gainers And Losers On Thursday

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