December 12, 2025

The major averages retreated from record highs today in a broad-based selloff on AI concerns. Triggering the drop was disappointing guidance from AI chip maker Broadcom (AVGO) coupled with Oracle's (ORCL) miss in revenues from AI data centers. Hawkish comments from several Fed policymakers in the morning that they didn't expect to see more rate cuts anytime soon pushed yields higher also weighing on stocks. The rate on the 10-year Treasury increased to 4.196%. The market sectors were mixed with Consumer Staples (XLP), Consumer Discretionary (XLY) and Healthcare (XLV) outperforming, while Technology (XLK) was the weakest market group down -2.89% and closing below its 50-day MA. Energy (XLE), Industrial (XLI) and Utilities (XLU) also lagged. Cannabis stocks were a pocket of strength on a report that President Trump was looking to cut restrictions on marijuana. Dip buyers stayed on the sidelines in the afternoon and the different indexes slumped into the weekend with the DJIA down 245.96 points (-0.51%) at 48458.05, while the S&P 500 lost 73.59 points (-1.07%) and settled at 6827.41. The NASDAQ dropped 398.69 points (-1.69%) finishing at 23195.17.

Breadth was negative with declining issues beating advancing issues 2:1 on the NYSE and 2.2:1 on the NASDAQ. Declining volume was 64% on the NYSE and 66% of the NASDAQ. The VIX rose 0.89 (+5.99%) and closed at 15.74. Crude oil prices eased 0.13 (-0.21%) and the January contract closed at $57.48 a barrel. Gold prices added 17.90 (+0.42%) and finished at $ 4330.90 an ounce. Bitcoin (BTC) closed the session at $90,280.

The major averages couldn't build on their record run as AI concerns reignited with chipmakers hit the hardest. Broadcom (AVGO) tumbled -11.43% pulling other semiconductor stocks down with it and the Philadelphia Semiconductor Index lost -5.10%. Today's selloff left the major averages mixed for the period after getting a boost from the Fed's rate cut on Wednesday. Next week investors will get a look at delayed jobs and inflation data that could lead to more volatility in the market, but it doesn't appear to be the start of a deeper dip.

Earnings releases to watch for on Monday include: MindWalk Holdings (HYFT).

Monday's Market Moving Economic Calendar: Empire State Manufacturing Index and Housing Market Index.

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