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Equities rallied as the Dow and S&P 500 notched record closes while the Nasdaq lagged on renewed AI jitters. The Fed’s third rate cut fueled risk appetite and bond rallies, but Oracle’s earnings and heavy AI capex warnings kept volatility elevated. Financials and cyclicals led gains while chip and cloud names saw profit-taking.
The Federal Reserve cut interest rates again, marking the third reduction in 2025 and exposing divisions among policymakers. Markets are processing the move while investors weigh the economic outlook and future policy path.
236,000 – Weekly U.S. initial unemployment claims, signaling labor-market softening.
Disney struck a major strategic tie-up with OpenAI, including a $1 billion equity investment and licensing for hundreds of characters. The pact reshapes content economics and accelerates AI-driven media distribution.
OpenAI rolled out GPT-5.2 after an internal ‘code red’ push, escalating the race with Google and other rivals. The update targets professional workflows and agentic AI use cases with claims of improved reliability.
Costco Tops Wall Street: Sales, Revenue Beat Estimates
Costco beat quarterly sales and revenue expectations with net sales near $66B, showing resilient membership and holiday strength—bullish sign for retail spending into year-end.
More on cnbc.com
Oracle’s quarterly report stoked investor anxiety after the company disclosed heavier-than-expected AI spending, triggering a sharp sell-off. Wall Street is reassessing the sustainability of big data-center bets across the sector.
Broadcom reported robust AI-chip demand, posting strong revenue and upbeat guidance that underpinned chip sector sentiment. Management sees continued momentum into the new quarter driven by custom AI orders.
Oracle’s AI Spend Shock Sends Shares Sliding
Oracle’s surprise surge in AI data-center spending and mixed results triggered a steep sell-off, reviving worries about capital intensity and the durability of the AI investment boom.
More on fortune.com
Major US indices closed at record highs as investors rotated away from stretched AI leaders into broader cyclical and financial stocks. The rally masks uneven sector performance and keeps volatility on tiled watchlists.
Reports say SpaceX is planning a 2026 IPO with eye-popping valuation targets, prompting debate about timing and market appetite. Elon Musk has publicly acknowledged the reports, adding momentum to IPO speculation.
Fed cut rates for a third time; White House signed an order preempting state AI rules; CFTC revised ‘actual delivery’ crypto guidance—regulatory landscape for AI and crypto is shifting fast.
Rivian unveiled its own AI chip and autonomy roadmap as it pushes into self-driving and robotaxi ambitions, prompting investor skepticism. The stock reacted sharply to execution concerns despite the long-term strategic pivot.
The Terraform/Luna collapse case concluded with a long prison term for the founder, underscoring criminal risks in crypto collapses. Sentencing marks a milestone in accountability for high-profile crypto fraud.
Creativity is the new productivity.
— Bob Iger
U.S. authorities stepped up pressure on Venezuela with a tanker seizure and fresh sanctions targeting Maduro’s inner circle. The moves escalate geopolitical and energy market risks in the region.
The White House moved to preempt a patchwork of state AI rules by signing an executive order to centralize federal AI oversight, triggering legal and political pushback. The move is set to provoke court challenges and industry lobbying.
Senators failed to pass extensions for Affordable Care Act subsidies, leaving premiums set to spike for millions and forcing political maneuvering. The Senate dismissed competing health bills, heightening near-term policy risk for consumers.
Lululemon announced CEO Calvin McDonald will step down amid slowing US sales, prompting a board-led search and a pop in shares after management raised guidance. The transition highlights investor sensitivity to retail leadership.
Weekly unemployment claims unexpectedly rose, stoking fresh debate about labor-market resilience as the Fed signals a cautious policy path. Economists flagged the spike as a sign of uneven job-market dynamics.
U.S. regulators shifted crypto rules, with the CFTC moving away from dated ‘actual delivery’ guidance while senators pursued a sweeping crypto bill. The combined signals point to a fast-evolving regulatory framework for digital assets.
Capitol Hill intensified scrutiny of Nvidia’s China chip sales as lawmakers demanded oversight and testimony. The episode highlights rising geopolitical friction over advanced semiconductor exports.
Ukraine sought security guarantees as talks over a peace plan continued, with President Zelensky even proposing a referendum on territorial compromises. The diplomatic push aims to lock in external guarantees if concessions are made.
Oil prices nudged higher after the IEA trimmed its surplus forecasts for 2025-26, tightening near-term market balances. Analysts still warned prices remain volatile given demand and supply uncertainties.
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