Bitget US Stock Morning Brief | S&P 500 Four-Day Decline; Oracle AI Financing Stalls; Energy & Precious Metals Rally; Micron Crushes Guidance, Surges After Hours (December 18, 2025)

I. Market Highlights

1.Federal Reserve Dynamics

Fed Governor Waller Supports Further Rate Cuts in 2026

• Fed Governor Waller stated there remains 50-100 basis points of rate-cut room in 2026 given cooling labor markets and controlled inflation, emphasizing gradual adjustments to balance growth and price stability
• Key Point One: Employment data shows no sharp deterioration, providing cushion for measured rate cuts
• Key Point Two: Inflation expectations remain anchored, preventing overly tight policy that could trigger slowdown
• Key Point Three: Third rate cut of 2025 completed; future path data-dependent

Market Impact: Statement bolsters fixed income sentiment, though any inflation rebound could limit cut magnitude, amplifying near-term equity volatility.

2.International Commodities

Oil Rebounds Above $60; Gold and Silver Hit Record Highs

• International crude supported by geopolitical factors; Brent crude reclaimed $60+ territory; precious metals touch historic peaks
• Key Point One: WTI crude +1%+ to $56.28/barrel; Brent +~2% to $60.01/barrel, influenced by Venezuela supply disruption rumors
• Key Point Two: Gold futures surge to $4,304.50/oz; platinum reaches $1,922.20/oz; silver likewise posts new highs
• Key Point Three: Natural gas and gasoline prices edge higher; overall energy complex gains support

Market Impact: Commodity rebound alleviates inflation concerns, though sustained weak global demand could cap further energy gains.

3.Macroeconomic Policy

US Corporate Executives Forecast Price Growth Exceeding 4% in 2026; Tariffs Remain Top Concern

• American business leaders express persistent tariff anxiety and anticipate 2026 price increases surpassing 4%, while economy faces government shutdown risk
• Key Point One: Tariffs viewed as primary external headwind, potentially raising import costs
• Key Point Two: Trump economic approval rating falls to two-term low; policy uncertainty intensifies
• Key Point Three: 2026 enters with policy and AI tailwinds, but shutdown risk could dampen growth

Market Impact: Policy uncertainty amplifies market volatility; potential tariff increases may accelerate inflation expectations, pressuring multinational earnings.

II. US Stock Market Review

Index Performance

• Dow Jones: -0.5% (-230 points), fourth consecutive decline, tech drag partially offset by energy support
• S&P 500: -1.1% to 6,721.43, four-day selloff led by tech sector weight
• Nasdaq 100: -1.8% to 22,693.32, tech selling intensifies; AI skepticism the primary driver

Tech Giants Update

• Apple: Down >1%, pressured by broad tech sector weakness; iPhone demand expectations stable but uninspiring
• Amazon: -0.6%, e-commerce business resilient, but cloud unit hampered by AI investment concerns
• Google: Down >3%, Gemini AI model update fails to inspire; search competition intensifies
• Meta: Down >1%, bullish ad revenue outlook offset by persistent regulatory pressure
• Microsoft: Down ~2%, cloud growth moderates; questions mount on AI spending ROI
• Nvidia: -3.8%, AI chip valuation bubble fears dominate; notable fund outflows
• Tesla: Down >4%, EV sales pressure; autonomous driving progress lacks fresh catalysts

Overall Assessment: Magnificent Seven stocks broadly lower, driven primarily by AI funding skepticism and stretched valuations; Nvidia and Tesla lead declines.

Sector Rotation

Technology Sector Down ~2%

• Key names: Oracle down >5%, Broadcom down >4%
• Drivers: AI financing concerns escalate; data center project delays intensify investor selloff of premium-valued tech stocks

Energy Sector Up >1%

• Key names: ExxonMobil up >2%, Chevron up >1%
• Drivers: Oil price rebound supports energy equities; geopolitical tensions underpin supply concerns

Precious Metals Sector Up ~1.5%

• Key names: Newmont Mining up >1%, Barrick Gold up >1%
• Drivers: Gold and silver at record highs, fueled by safe-haven demand and inflation expectations

III. Deep Dive: Key Stock Insights

1.Oracle — AI Data Center Financing Stalls

Event Overview: Oracle's largest partner Blue Owl Capital suspended financing and equity investment negotiations for a $10 billion Michigan data center project, triggering stock plunge exceeding 5%. Originally designed to service OpenAI and other clients, elevated debt burdens and AI spending skepticism have deadlocked discussions. Company faces AI transformation headwinds; while quarterly results remain solid, market questions future funding security.

Market Interpretation: Institutional views diverge. Barclays argues financing halt underscores elevated AI infrastructure costs, pressuring near-term stock; Goldman Sachs characterizes it as temporary adjustment with structural AI demand intact.

Investment Insight: Near-term risk-off positioning prudent. If financing restarts, monitor reversal opportunity, but heighten vigilance on AI bubble deflation risk.

2.Micron Technology — Earnings Guidance Crushes Expectations

Event Overview: Micron delivered Q1 results exceeding analyst consensus; Q2 revenue, gross margin, and EPS guidance significantly beat expectations. Company raised FY2026 capex guidance to $20 billion, powered by recovering DRAM/NAND demand and AI application expansion. Stock surged nearly 7% after hours.

Market Interpretation: Wall Street analysts broadly raised price targets. Citi highlights robust HBM chip orders benefiting from data center expansion; Morgan Stanley emphasizes capex increases reflect confidence in AI storage market.

Investment Insight: Storage cycle recovery provides tailwind; suitable for medium-to-long-term holding, but monitor semiconductor supply chain fluctuations.

3.Broadcom — AI Chip Valuation Concerns Intensify

Event Overview: Broadcom declined >4%, pressured by AI funding skepticism and broader tech selloff. Despite robust AI chip business growth, market questions valuation sustainability. Recent orders remain steady, but face intensifying competition and rising supply chain costs.

Market Interpretation: UBS downgraded rating, citing potential AI enthusiasm cooldown dragging revenue growth; Jefferies maintains buy, highlighting custom chip demand underpinning long-term growth.

Investment Insight: Near-term volatility may present buying opportunity, but evaluate AI investment return cycle carefully.

4.Nvidia — Tech Rout Leader

Event Overview: Nvidia declined 3.8%, as AI chip leader faces deepening market skepticism toward artificial intelligence trade. Blackwell chip deployment progresses smoothly, yet fund outflows and valuation bubble concerns dominate price action.

Market Interpretation: Goldman Sachs warns of AI infrastructure investment slowdown risk; Piper Sandler remains constructive, citing Nebius platform adoption driving demand.

Investment Insight: Core technology advantages persist; post-correction entry warranted, but monitor macro policy shifts closely.

5.Amazon — AI Team Restructuring

Event Overview: Amazon declined 0.6%, announcing integration of AGI, chip, and quantum computing divisions with new AI leadership appointments. Company targets AI project efficiency optimization, though market worries cloud computing competition and spending ROI.

Market Interpretation: JPMorgan views restructuring as strategic optimization, elevating Nova model competitiveness; Evercore ISI suggests consolidation may reduce near-term costs but requires execution verification.

Investment Insight: E-commerce and cloud dual-engine growth supports long-term positioning.

IV. Upcoming Events Alert

Key Macroeconomic Data Release:

• 21:30 UTC — US November Non-Seasonally Adjusted CPI Year-over-Year
• 21:30 UTC — US November Seasonally Adjusted CPI Month-over-Month
• 13:30 UTC — US Weekly Initial Jobless Claims (week ended Dec 13)

Bitget Research Institute Perspective: On December 18, 2025, US equities closed sharply lower with tech stocks leading declines. This reflects investor concerns over Federal Reserve policy inflection. Despite sturdy full-year performance, near-term volatility intensifies. We believe 2026 US equity markets will lead growth in a supportive policy environment, with developed and emerging markets poised for double-digit returns, underpinning a constructive global equity outlook.

Disclaimer: Content compiled via AI research and verified by human review for publication only. Not intended as investment