Stock Market Summary – December 12, 2025

The stock market is preparing for a major rotation going into the year-end rally, with several important economic reports like jobs and inflation data expected. Despite the anticipation of weaker jobs growth and sticky inflation yet to reach the Federal Reserve’s 2% target, analysts believe the scenario could still open the market to potential buyers, boosting the year-end rally. The S&P 500 now stands near the 7,000 milestone. This week saw a retreat from tech stocks like Oracle and Broadcom after poor quarterly results.

Oracle’s shares fell by 6.5% amid rumors of possible delays in the completion of data centers for OpenAI, which the company denied. Meanwhile, Broadcom saw its shares decline by 11% despite exceeding quarterly result expectations, with investors expressing concerns over increasing dependence on AI. Both Oracle and Broadcom’s stock behavior reflects the overall nervousness surrounding AI stocks currently.

In other news, Coinbase plans to launch in-house prediction markets with Kalshi, expanding its asset classes as investors’ sentiment on digital assets cools. The deal further highlights Kalshi’s expansion in prediction markets, including non-exclusive partnerships with Robinhood.

Athleisure brand Lululemon saw its shares grow by 9.6% after CEO Calvin McDonald announced his departure while Costco’s shares dipped by 1.6% despite exceeding fiscal first-quarter earnings and revenue expectations. Finally, AI data center support company, Fermi, saw its shares plunge by 33% after losing a $150 million funding deal.

Overall, the information suggests a major shift in the stock market influenced by upcoming economic reports and concerns over high valuations and a potential over-reliance on artificial intelligence.