Market Fluctuations Amidst AI Stock Pressures
On December 15, 2025, traders were seen diligently engaged on the floor of the New York Stock Exchange in New York City, a scene captured aptly in a recent image by Brendan McDermid of Reuters.
The S&P 500 exhibited volatility on Monday as prominent stocks within the artificial intelligence sector grappled with mounting pressures. Ultimately, the broad market index recorded a decline of 0.3%, having initially opened in positive territory.
Concurrently, the Dow Jones Industrial Average fell by 141 points, also representing a 0.3% dip, while the Nasdaq Composite experienced a slightly steeper drop of 0.5%.
Particularly notable were the performances of specific AI stocks, which adversely affected the overall market dynamics during Monday’s trading session.
Shares of Broadcom and Oracle, both of which had seen significant rotations away from AI last week, dipped approximately 5% and more than 2%, respectively. Other industry giants, such as Microsoft, also faced losses.
These stock movements transpired in the wake of a disappointing week for both the S&P 500 and the tech-centric Nasdaq, while the Dow managed to ascend—benefiting from its comparatively lower exposure to technology and AI sectors.
Notably, Oracle’s shares plummeted by 12.7% over the week, while Broadcom plummeted more than 7%. The tech sector within the S&P 500 saw a decline of 2.3%.
David Wagner, head of equities at Aptus Capital Advisors, noted the prevailing sentiment surrounding AI investments. “It feels like everyone hates the AI trade right now. There’s no doubt about it,” he remarked in an interview with CNBC.
He posited that the market continues to be influenced by the concentration of power among what he termed the “Magnificent Seven” companies, which he believes maintain significant operational leverage that the market has yet to fully appreciate.
“As long as you secure any form of revenue growth, these entities will continue to expand their margins, positioning themselves for strong returns in the coming year,” he added.
In the short term, Wagner maintained a cautiously optimistic stance regarding the broader market’s trajectory, describing periodic pullbacks as “healthy” and “normal.” Although the anticipated Santa Claus rally may have already manifested to some extent, he foresees potential gains in the near future.
“For a substantial shift in the market to occur, we need a change in fundamentals. I don’t foresee that happening soon,” he asserted.
This week, key economic data is expected to set the market’s tone, with the November nonfarm payroll figures scheduled for release on Tuesday, alongside the October retail sales data. The latter reports were postponed due to the U.S. government shutdown that occurred in the fall.
Economists surveyed by FactSet project an increase of 40,000 in November nonfarm payrolls— a notable decrease compared to the 119,000 jobs added in September.
Additionally, the November consumer price index is set to be published later in the week on Thursday.
Source link: Cnbc.com.
