US Stock Market Today (Dec. 12, 2025): S&P 500 and Nasdaq Slide on Broadcom, Oracle as Investors Brace for Delayed Jobs & CPI Data

Updated: 12:30 p.m. ET (Friday, Dec. 12, 2025)

U.S. stocks are pulling back at midday after a record-setting week for major benchmarks, with technology and AI-linked names leading the decline as investors reassess the pace—and profitability—of Big Tech’s massive AI buildout. Around 12:30 p.m. ET, trading action shows a clear split: the Nasdaq-heavy trade is under pressure, while the Dow’s more value-oriented mix has held up better than tech as money rotates across sectors. ^[1]

The backdrop is unusually complex for late December: the Federal Reserve just delivered its third straight quarter-point cut, but markets are now turning to a backlog of economic reports delayed by a 43-day federal government shutdown—a looming “data dump” that could reset rate expectations and volatility into year-end. ^[2]

Stock market snapshot at 12:30 p.m. ET

With live index levels moving quickly, ETF proxies show the shape of the midday tape:

S&P 500 proxy (SPY): down about 0.91%
Nasdaq-100 proxy (QQQ): down about 1.62%
Dow proxy (DIA): down about 0.30%
Russell 2000 proxy (IWM): down about 1.06%

That weakness follows Thursday’s record closes for the S&P 500 and Dow, a reminder that today’s move is so far a pullback from strength—not a breakdown—though tech’s slide is sharp enough to drag the broader market lower. ^[3]

In cross-asset signals, Treasury yields have risen, with the 10-year yield near 4.19% late morning, adding pressure to high-duration growth stocks. The U.S. dollar index has been steady to slightly higher, while bitcoin and other risk assets have softened alongside the tech-led wobble. ^[4]

Why the market is down today: AI “payoff anxiety” returns

Today’s selling is less about a single headline and more about a theme that keeps resurfacing in the post-ChatGPT era: how quickly AI spending turns into AI profits.

This week, that debate intensified after Oracle’s spending outlook revived questions about balance sheets and returns on AI infrastructure. Then, Broadcom’s margin commentary added a second jolt—suggesting that even strong AI demand can come with profitability trade-offs depending on product mix. ^[5]

The result is a familiar pattern:

AI bellwethers slide, especially chips, cloud infrastructure, and adjacent “AI trade” winners.
The Nasdaq underperforms as investors de-risk the most crowded theme.
Rotation supports parts of the market that aren’t as directly exposed to the AI capex cycle. ^[6]

Broadcom stock sinks despite strong demand: the margin story matters

Broadcom is one of today’s central market drivers. Shares are sharply lower after the company warned that rising sales of lower-margin custom AI processors and a higher mix of AI-related revenue could pressure profitability, even as demand remains robust. ^[7]

Reuters reporting highlighted two key market sensitivities:

Investors have become more skeptical of AI economics after a long tech rally and record-high valuations in parts of the sector. ^[8]
Broadcom’s comments came right after Oracle’s capex surprise, compounding worries that the AI buildout could be costlier and slower to monetize than bulls assume. ^[9]

Another wrinkle: Broadcom’s AI narrative isn’t “weak demand”—it’s how profitable that demand is, and what that implies for the market’s broader willingness to pay premium multiples for AI exposure into 2026. ^[10]

Oracle keeps weighing on the “AI trade,” and now there’s a data-center delay headline

Oracle has been the spark for much of the AI-payoff debate this week. Investors have focused on its AI infrastructure spending trajectory, including concerns about debt-funded expansion and the timeline for returns. ^[11]

A separate Reuters report—citing a Bloomberg News item—added another layer on Friday: Oracle is said to have pushed back completion dates for some data centers being developed for OpenAI to 2028 from 2027, with the report pointing to labor and materials constraints. Oracle and OpenAI did not immediately comment in that Reuters write-up, and Reuters noted it could not independently verify the report. ^[12]

Even before that, the market reaction was clear: Oracle’s drop has been large enough to drag other AI-linked names and keep investors cautious about the capex-heavy corners of tech. ^[13]

Nvidia is caught between AI fears and a China-demand tailwind

Nvidia has been trading in the cross-currents of:

broad AI valuation nerves, and
a highly specific catalyst tied to China.

Reuters reported Friday that Nvidia told Chinese clients it is evaluating adding production capacity for its H200 AI chips after orders exceeded current output, after President Donald Trump said the U.S. would allow Nvidia to export H200 processors to China while collecting a 25% fee on those sales. ^[14]

The reporting also flagged uncertainty on the China side, including that Chinese authorities had not yet greenlit purchases and were discussing whether to allow shipments. ^[15]

Net effect for markets today: even supportive demand headlines can struggle to offset broader risk-off positioning when the Nasdaq is being pulled down by AI “payoff” concerns.

The “rotation” story is real—and it’s why the Dow is holding up better

One of the most important takeaways from today’s action is what’s happening beneath the index surface:

Investors are increasingly selective in AI exposure rather than “buy anything AI.” ^[16]
The market is watching whether leadership can shift away from the most crowded tech names without breaking the broader rally. Strategists cited by Reuters framed this as a key test given tech’s heavy weight in the S&P 500 (about 35% as of midweek). ^[17]
Fund-flow data also supports rotation: in the week through Dec. 10, U.S. equity funds saw net inflows, with sector fund demand strongest in areas like metals & mining, industrials, and healthcare. ^[18]

This is why a day that feels rough for the Nasdaq can still look “orderly” in parts of the Dow and in sectors that don’t depend as directly on near-term AI capex payback.

Today’s notable movers: Lululemon, Rivian, and cannabis stocks buck the tech slide

While mega-cap tech has dominated the narrative, several high-profile single-stock moves are shaping intraday flows:

Lululemon (LULU): Shares jumped after the company raised its annual profit forecast, and markets also reacted to the CEO transition timeline. ^[19]

Rivian (RIVN): Rivian surged after analysts praised its AI/autonomy strategy, including a move toward a custom self-driving chip and a new paid driver-assistance offering priced below key rivals. ^[20]

Cannabis stocks: A basket of marijuana-linked names spiked after a report said Trump could move to ease marijuana restrictions via executive action as soon as Monday, including steps tied to federal scheduling; Reuters also noted the White House said no final decisions had been made. ^[21]

These moves matter for the broader market because they show investors are still willing to take risk—but more often in stock-specific stories rather than the “one big theme” AI trade.

Federal Reserve policy sets the backdrop—but next week’s delayed data may set the tone

Markets are still digesting Wednesday’s Fed decision and what it means for 2026.

The Federal Reserve’s Dec. 10 statement shows the Fed:

cut the target range by 0.25 percentage point to 3.50%–3.75%,
said inflation “remains somewhat elevated,” and
emphasized a data-dependent approach going forward. ^[22]

The statement also revealed meaningful internal disagreement, with dissenting votes reflecting both “cut more” and “don’t cut” views—an unusually wide split that underscores how sensitive the outlook is to incoming labor and inflation data. ^[23]

Now comes the key near-term catalyst: a backlog of economic releases delayed by the shutdown.

Reuters reports that a 43-day federal government shutdown postponed or canceled key reports, and next week is expected to bring:

a delayed November jobs report on Tuesday, and
CPI on Thursday, among other releases such as retail sales. ^[24]

This matters because the Fed itself has signaled uncertainty about the true labor-market trend. Reuters noted Powell said recent payroll prints may be overstated—potentially even masking net job losses on average—raising the stakes for the coming data. ^[25]

Market outlook: what today’s selloff may be signaling into year-end

A clean way to interpret the midday action is this: the market is repricing confidence, not abandoning the rally.

Several themes from today’s reporting point to how investors may behave into late December and early January:

1) AI spending is shifting from “celebrated” to “scrutinized”

Reuters reporting suggests the market is no longer automatically rewarding aggressive capex—especially when companies cannot clearly show when spending converts to revenue and margin. ^[26]

2) Debt is becoming a bigger part of the AI infrastructure story

A Reuters analysis highlighted the surge in AI data center and project financing and growing attention to whether debt-funded buildouts could amplify risk if valuations correct, noting that some central bank voices have warned about financial-stability implications. ^[27]

3) The “beat” headline may matter less than the market reaction

In a separate Reuters commentary, strategist Marty Fridson argued that the very concept of earnings “beats” can be noisy—shaped by inconsistent consensus methods and shifting definitions of adjusted earnings—suggesting investors should watch price reaction and guidance more than the simplistic beat/miss label. ^[28]

4) Volatility risk rises as liquidity thins and the data backlog hits

Reuters’ week-ahead piece flagged that holiday-thinned markets can exaggerate moves—and that the incoming wave of delayed data could add volatility if it fails to provide a “resounding reason” to add risk. ^[29]

What to watch for the rest of today’s session

With several hours left in Friday trading, here are the pressure points that typically determine whether a midday tech selloff stabilizes or deepens:

Semiconductors and AI infrastructure leaders: If Broadcom and its peers keep sliding, the Nasdaq often struggles to find a floor. ^[30]
Treasury yields: A sustained move higher in the 10-year yield tends to compress valuation multiples for growth stocks. ^[31]
Market breadth: If defensives, healthcare, industrials, and other rotation beneficiaries remain firm, the S&P 500 can stabilize even with tech weak. ^[32]

Bottom line

As of 12:30 p.m. ET on Dec. 12, 2025, the U.S. stock market is experiencing a tech-led pullback driven by renewed anxiety about the AI investment cycle’s profitability—with Broadcom and Oracle at the center of the day’s narrative. ^[33]

But the bigger story into year-end may be what comes next: a high-stakes week of delayed labor and inflation datafollowing the Fed’s latest cut—data that could validate the soft-landing narrative, revive recession debate, or simply keep volatility elevated as investors navigate a crowded AI theme and thin holiday liquidity. ^[34]

This article is for informational purposes only and does not constitute investment advice.

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