Wednesday, December 17, 2025
Markets skilled a heavier sell-off immediately, after beginning the session on the opening bell flat-to-up. By 11am or so, the Dow and the small-cap Russell have been in adverse territory; the Nasdaq and S&P 500 had already gotten there. The Dow closed -228 factors, -0.47%, and it obtained off simple. The S&P 500, Nasdaq and Russell 2000 have been all down -1.16%, -1.81% and -1.14%, respectively.
This marks the fourth-straight down-day for the blue-chip Dow and the great S&P 500. The Russell 2000 has solely traded down since closing at an all-time excessive final Thursday. The Nasdaq has dipped into the purple over the previous month of buying and selling, and down -6.5% from its all-time excessive again in late October of this yr.
The AI commerce had been preserving markets buoyant for a lot of 2025; now that the yr is coming to an finish, buyers are apparently trying towards 2026 with a warier eye than we’ve seen — though we’ve solely had one “Santa Claus Rally” previously 5 years, in 2023. AI shares have taken it on the chin, together with Oracle ORCL -5.4%, Broadcom AVGO -4.5% and NVIDIA NVDA -3.8%. Additionally, Caterpillar CAT dropped -4.7% and Lennar House LEN fell -4.4%.
Even Tesla TSLA, contemporary from an all-time closing excessive simply yesterday, suffered a heavy spherical of profit-taking immediately, because the EV chief slid -4.6% on the day. Tesla has additionally been named by the California DMV as having offered deceptive claims about its autos, claiming them to have “full self-driving functionality” after they don’t, precisely. The DMV adopted this place from a decide’s ruling final month, and has been given 60 days to take down such claims.
Micron Posts Large Beats in Q1 Report
After immediately’s shut, Zacks Rank #1 (Sturdy Purchase)-rated Micron MU blew the doorways off expectations in its fiscal Q1 report. Earnings of $4.78 per share swept away the paltry Zacks consensus of $3.91, whereas revenues of $13.64 billion zoomed previous the $12.74 billion anticipated. Subsequent-quarter steering can also be considerably larger than we had beforehand forecast.
Working money stream rose +47% quarter over quarter to $8.41 billion, and is greater than double the $3.24 billion it had reported within the year-ago quarter. Micron doubled its cloud reminiscence enterprise yr over yr to $5.28 billion, on improved +66% gross margins. Shares are up +5% in late buying and selling, including to its stupendous +168% rise in share value from the beginning of the yr.
November CPI Inflation Fee Hits the Tape Thursday Morning
Tomorrow forward of the opening bell, we not solely get regular Weekly Jobless Claims, however the government-shutdown-delayed Client Worth Index (CPI) for November (skipping October utterly). We already hear noises from some market contributors in regards to the accuracy of this upcoming knowledge 16 hours earlier than it’s launched, however consensus is at present for a +3.1% Inflation Fee (year-over-year CPI, headline) — the very best since Might of 2024. Core CPI yr over yr is anticipated at +3.0%.
We have now already seen the erosion to the labor market over the previous yr yesterday with the Employment State of affairs report. If we additionally see CPI numbers persevering with to tick up — and we’ve solely gone up or stayed pat every month since April’s low +2.3% — that could be a foul signal for the economic system getting ready to a brand new yr. “Might” be; it’s not sure. Even nonetheless, promoting off the tops of this wholesome 2025 market appears extra affordable if buyers are questioning what’s to return.
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Caterpillar Inc. (CAT) : Free Inventory Evaluation Report
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This text initially revealed on Zacks Funding Analysis (zacks.com).
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.
