Wall Street declines for the fourth consecutive day, Oracle's financing dilemma drags down tech stocks, gold and oil rise together against the trend | Market Brief (December 18, 2025)

US Stocks Fall for Four Consecutive Days, Tech Sector Under Heavy Pressure

Index Performance Review

On the 18th, the New York markets closed lower across the board. The Dow Jones Industrial Average fell 0.5% (230 points), marking its fourth consecutive day of decline; the S&P 500 dropped 1.1% to 6,721.43 points; the Nasdaq Composite experienced the largest decline, down 1.8% to 22,693.32 points. Continuous selling of tech stocks has become the main driver dragging down the indices, while the energy sector’s rebound has struggled to offset the tech sector’s weakness.

Tech Giants All Decline

Apple, Amazon, Google, Meta, Microsoft, Nvidia, Tesla and other tech leaders all weakened. Nvidia saw the largest decline (-3.8%), followed by Tesla which dropped over 4% (, and Microsoft fell about 2%. Concerns over AI investment returns continue to ferment, making high-valuation tech stocks targets for selling.

Macro Background: Rate Cut Expectations Support, but Inflation and Trade Frictions Create Uncertainty

Federal Reserve Officials Signal Room for Rate Cuts in 2026

Federal Reserve Board member Waller stated that, given the gradual cooling of the labor market and manageable inflation pressures, a modest rate cut of 50-100 basis points could be achieved next year. This statement boosted bond market expectations, but if inflation rebounds, the scale of rate cuts may be limited.

Energy Prices Rebound, US Gasoline Costs Under Pressure

Crude oil prices rose due to geopolitical tensions, with WTI crude up over 1% to $56.28 per barrel, and Brent crude nearly 2% higher at $60.01 per barrel. This led to increased US gasoline costs, with rising energy and transportation costs potentially further impacting inflation expectations. Gold and silver hit record highs, with gold prices surpassing $4,304.50 per ounce, as demand for precious metals as safe-haven assets remains strong.

Corporate Executives Issue Warnings: 2026 Inflation May Exceed 4%

US CFOs generally hold a cautious outlook for the coming year, expecting inflation to rise by over 4%. Tariff policies remain the biggest concern, coupled with the risk of government shutdowns, putting multiple pressures on economic growth. Trump’s policy approval ratings have fallen to the lowest levels in his two terms, with policy uncertainty continuing to grow.

Stock Focus: Financing Challenges, Unexpected Results, Valuation Pressures

Oracle Faces Financing Headwinds, Data Center Dreams Shattered

Oracle’s stock plunged over 5%, after its main financing partner Blue Owl Capital paused negotiations for a $10 billion Michigan data center project. The project was originally planned to serve top clients like OpenAI, but high debt levels and doubts about AI spending sustainability caused negotiations to stall. Wall Street analysts are divided: Barclays sees this as exposing the sky-high costs of AI infrastructure, with short-term pressure on stock prices; Goldman Sachs views it as a phase correction, with long-term AI demand still strong.

Micron Technology Rises Against the Market, Storage Chip Demand Rebounds

In contrast, Micron posted Q1 earnings well above market expectations, and Q2 guidance also significantly better than expected, with capital expenditure commitments increased to $20 billion (2026). After-hours, the stock surged nearly 7%, driven by a recovery in storage chip demand and expansion of AI applications. Citi and Morgan Stanley both raised target prices, optimistic about growth in orders for their HBM chips and long-term opportunities in AI data centers.

Broadcom Valuation Anxiety, Drop Over 4%

Broadcom experienced a decline of over 4%, amid market doubts about the sustainability of AI chip valuations. Despite strong growth in AI chip business and steady recent orders, increasing competition and rising supply chain costs have unsettled investors. UBS downgraded its rating, suggesting that cooling AI enthusiasm could slow revenue growth; Jefferies remains optimistic, believing long-term demand for custom chips will support growth.

Nvidia Leads the Decline, Chip Giant Enters Valuation Vortex

As the leader in AI chips, Nvidia fell 3.8%, with capital outflows and concerns over an AI bubble dominating market sentiment. While the deployment of chips by Blackwell has progressed smoothly, market optimism has been replaced by caution. Goldman Sachs warns that investment in AI infrastructure may slow down, while Piper Sandler believes the proliferation of platforms like Nebius will support long-term demand.

Amazon Restructures AI Team, Cloud Business Competition Intensifies

Amazon’s stock declined 0.6%, as the company integrated its AGI, chip, and quantum computing divisions and appointed a new AI head. The move aims to optimize project efficiency, but market concerns about cloud competition and AI investment returns persist. JPMorgan views it as a strategic move to enhance the competitiveness of the Nova model; Evercore ISI believes the restructuring could reduce costs in the short term, but execution remains to be seen.

Sector Trends: Energy and Precious Metals Shine Against the Market

Tech Sector Declines the Most, About -2%

Representative stocks: Oracle down over 5%, Broadcom down over 4%. Anxiety over AI financing and high valuations are the main drag.

Energy Sector Rebounds, Up Over 1%

Representative stocks: ExxonMobil up over 2%, Chevron up over 1%. Rising oil prices and geopolitical risks support oil and gas stocks, while potential increases in US gasoline costs also boost energy assets.

Precious Metals Sector Bright, Up About 1.5%

Representative stocks: Newmont Mining up over 1%, Barrick Gold up over 1%. Gold and silver hit record highs, driven by safe-haven demand and inflation expectations.

Macro Data Schedule and Market Outlook

At 21:30 Eastern Time, US November CPI data (year-over-year and month-over-month) and initial jobless claims will be released, directly influencing market expectations for Federal Reserve policy paths.

Market Overall Assessment

The performance of US stocks on December 18, 2025, reflects investors’ reassessment of the delicate balance between growth and inflation. Although the annual gains remain substantial, short-term volatility has intensified. Looking ahead to 2026, supported by policy backing and AI-driven growth, US stocks are expected to maintain an upward trajectory. Emerging markets may also benefit from improved global liquidity, with double-digit returns not out of reach. However, trade policy uncertainties, the validation of AI investment returns, and the direction of energy costs such as US gasoline will be key variables influencing market rhythm.

Disclaimer: The above content has been collected by AI research and verified manually before publication. It does not constitute any investment advice.