Tech stocks extended their slide on Monday after concerns about overcooked AI expectations<\/a> prompted investors to jump out of tech and into value stocks. That has pressured the Nasdaq and the S&P, but spared the Dow the worst, given it includes fewer tech names.<\/p>\n But many strategists see the rotation as positive<\/a> \u2014 a sign of a broadening in support for stocks from narrow tech leadership. Plus, any weakness in the AI trade could spur other sectors to rise<\/a>.<\/p>\n Markets now enter the final full trading week of 2025 bolstered by Wall Street optimism<\/a> for stocks heading into the new year. Analysts see President Trump’s influence on a reshaped Federal Reserve and his One, Big, Beautiful Bill<\/a> as likely to deliver monetary and fiscal stimulus that is bullish for stocks and corporate earnings.<\/p>\n This week brings big tests<\/a> of those hopes for more Fed easing, with the release of pivotal economic data delayed by the US government shutdown. The monthly jobs report is due on Tuesday, while an inflation reading is slated for Thursday \u2014 both for November. An update on October retail sales will also be closely watched in the debate over <\/a>whether the Fed is done with rate cuts.<\/p>\n A key factor is who replaces Chair Jerome Powell once his term ends in May. Trump, who has called aggressively for lower rates, has flagged Kevin Hassett<\/a> as a frontrunner, with Kevin Warsh<\/a> in contention. On Sunday, Hassett said policymakers would consider<\/a> Trump’s opinions if he were chosen, but would remain independent in setting rates.<\/p>\n On the corporate front, iRobot (IRBT<\/a>) stock plummeted around 70% after the maker of Roomba vacuum cleaners filed for bankruptcy.<\/a> The US company has struggled in the face of competition from cheaper Chinese rivals and Trump’s tariff push.<\/p>\n LIVE COVERAGE IS OVER 20 updates <\/p>\n The S&P 500 (^GSPC<\/a>) fell 0.1%, and the tech-heavy Nasdaq Composite (^IXIC<\/a>) dropped 0.6% as the AI trade came under pressure over renewed concerns over valuations.<\/p>\n Broadcom (AVGO<\/a>) continued to sink<\/a> following its latest earnings update last week. Oracle (ORCL<\/a>) shares were also down.<\/p>\n The declines came ahead of a flurry of economic data to help set expectations for interest rate cuts in 2026.<\/p>\n<\/li>\n UBS strategists said they see no evidence of an AI bubble as concerns over valuation in the industry have weighed on tech stocks recently.<\/p>\n “While we expect global AI capex to continue to rise over the coming years, we do not see evidence of an investment bubble,” Ulrike Hoffmann-Burchardi, chief investment officer of Americas and global head of equities at UBS Global Wealth Management, said on Monday.<\/p>\n “In fact, we have said that the race to artificial general intelligence could trigger a capex cycle where the capex of the enabling layer is dissociated from the near-term monetization potential of the application layer. And this pattern is consistent with previous innovation cycles,” added the strategist.<\/p>\n<\/li>\n Bitcoin (BTC-USD<\/a>) tumbled more than 3% to hover around $86,000 on Monday as strategists remained skeptical of a trend reversal heading into the end of the year.<\/p>\n The world’s largest cryptocurrency is currently down 8% year to-date. Last week, it was unable to punch above $94,000.<\/p>\n Strategists note that flows into bitcoin exchange-traded funds have been weak in recent weeks, capping upward movement after the token tumbled from a record high of about $126,000 in October to nearly $80,000 last month.<\/p>\n “Bitcoin is more likely to continue trading in a consolidation phase with a relatively wide range between $80,000 and $100,000, rather than entering a strong bullish trend,” Linh Tran, senior market analyst at XS.com, said.<\/p>\n Read more here. <\/a><\/p>\n<\/li>\n Yahoo Finance’s Ines Ferr\u00e9<\/a> reports:<\/p>\n Read more here.<\/a><\/p>\n<\/li>\n Tesla (TSLA<\/a>) stock briefly touched its all-time high of $479.86 on Monday before dipping below that level after Tesla bull Dan Ives of Wedbush wrote that the “autonomous chapter\u201d has begun for the EV maker. Tesla shares were trading around $476.85 at last check.<\/p>\n Yahoo Finance’s Pras Subramanian<\/a> reports:<\/p>\n Read more here.<\/a><\/p>\n<\/li>\n Yahoo Finance’s Jennifer Schonberger reports:<\/p>\n Read the full story here.<\/a><\/p>\n<\/li>\n Yahoo Finance’s Jake Conley reports:<\/p>\n Read the full story here.<\/a><\/p>\n<\/li>\n Tesla (TSLA<\/a>) led the “Magnificent Seven” tech stocks on Monday, rising around 4%. Nvidia (NVDA<\/a>) also ticked up, while other Big Tech shares fell.<\/p>\n Tesla was the only Magnificent Seven name spared from a weekly loss amid a sell-off in AI-linked names last week, as data analyzed by Piper Sandler showed<\/a> the EV maker’s full self-driving (FSD) software getting closer to being able to operate unsupervised.<\/p>\n Tesla’s gain put shares back near their record high for the first time this year. The stock’s previous record close was in December 2024, when shares hit $479.86.<\/p>\n Nvidia inched higher as the AI chipmaker debuted open-source models<\/a> for building agentic AI. The company said its latest Nemotron models use a “Mixture of Experts” architecture, allowing them greater efficiency.<\/p>\n Meanwhile, Broadcom (AVGO<\/a>) continued to sink<\/a> following its latest earnings update last week, as investors apply greater scrutiny to how companies scale their AI businesses without sacrificing profitability.<\/p>\n<\/li>\n Bitcoin (BTC-USD<\/a>) fell below $87,000 Monday morning for the third time this month.<\/p>\n The decline put bitcoin down 7% for the year and 9% over the past month alone. Cryptocurrencies also fell across the board, with notable declines in BNB (BNB-USD<\/a>) and XRP (XRP-USD<\/a>).<\/p>\n Bitcoin rallied<\/a> last week ahead of the Federal Reserve’s interest rate cut, reaching a high of roughly $94,600, but unwound those gains as Wall Street awaited delayed economic data this week that will factor into the central bank’s policy decisions in 2026.<\/p>\n<\/li>\n Zillow (Z<\/a>) shares slid nearly 11% in early trading Monday amid a report<\/a> that Google (GOOG<\/a>) is testing a new real estate ad format that could rival the company’s offerings.<\/p>\n The slide puts Zillow shares down more than 9% in 2025 after a volatile year.<\/p>\n<\/li>\n US stocks climbed at the market open on Monday.<\/p>\n The S&P 500 (^GSPC<\/a>) added nearly 0.5%, and the tech-heavy Nasdaq Composite (^IXIC<\/a>) moved up roughly 0.6% after a tech sell-off last week<\/a>. Meanwhile, the Dow Jones Industrial Average (^DJI<\/a>) gained 0.4%, on track to recover its Friday loss.<\/p>\n The gains show investors looking beyond a recent sell-off to a slew of delayed federal economic data releases set for this week \u2014 the last trading week of 2025 \u2014 that could boost the case for for interest-rate cuts next year.<\/p>\n<\/li>\n Netflix (NFLX<\/a>) stock rose less than 1% in premarket trading after the streaming company said its plans to take over Warner Bros. Discovery (WBD<\/a>) remained intact despite Paramount Skydance’s (PSKY<\/a>) hostile bid.<\/p>\n In a letter to employees on Monday, Netflix’s co-CEOs Greg Peters and Ted Sarandos said Paramount’s move was “entirely expected,” according to Reuters. The CEOs also stated that their deal was “solid” and that they expect to clear regulatory hurdles.<\/p>\n Netflix’s acquisition of Warner Bros. Discovery’s streaming and studios assets is expected to take 12 to 18 months to finalize.<\/p>\n Warner Bros. Discovery stock edged lower ahead of the opening bell, while Paramount Skydance shares moved 0.7% higher.<\/p>\n Read more here.<\/a><\/p>\n<\/li>\n Yahoo Finance’s Ines Ferr\u00e9<\/a> reports:<\/p>\n Read more here<\/a>.<\/p>\n<\/li>\n OpenAI (OPAI.PVT<\/a>) \u2014 the world’s most valuable startup \u2014 is the winner of Yahoo Finance\u2019s 11th annual Company of the Year<\/a> award.<\/p>\n Three years ago, the company released ChatGPT 3.5<\/a>. It’s been at the center of the artificial intelligence boom ever since.<\/p>\n It’s hard to overstate the impact the company had on the investing narrative this year. OpenAI struck megadeals<\/a> with Microsoft (MSFT<\/a>), Oracle (ORCL<\/a>), Advanced Micro Devices (AMD<\/a>), and Nvidia (NVDA<\/a>). Its deal with AMD, for instance, sent the chipmaker’s stock soaring 24% in one day.<\/p>\n OpenAI amassed $1.4 trillion in committed spending over the next eight years, and it converted to a for-profit company<\/a> \u2014 with a potential trillion-dollar IPO on the horizon. OpenAI’s private company shares have surged 153% this year as it landed a $500 billion valuation, according to Yahoo Finance’s private company data<\/a>.<\/p>\n “It’s been a year where we have really hit kind of this day one of the next phase for OpenAI,” CFO Sarah Friar<\/a> told Yahoo Finance Executive Editor Brian Sozzi<\/a> in an exclusive interview (video above). “And we’ve seen … a lot of the ecosystem really start to move toward us to help us create this future.”<\/p>\n However, with so much riding on OpenAI and artificial intelligence in the markets, there are some big overhanging questions about the private company.<\/p>\n First, can OpenAI’s growth keep up with its staggering valuation? OpenAI’s 2025 revenue was $13 billion. HSBC estimated that OpenAI will have a $207 billion funding gap by 2030, even if its revenue multiplies as projected.<\/p>\n Second, can OpenAI hold on to its first-mover advantage? Models from Google (GOOG<\/a>), Anthropic (ANTH.PVT<\/a>), and others have gained traction in the space, leading OpenAI founder Sam Altman to declare “code red”<\/a> in an internal memo earlier this month. And the demand for cloud services has benefited Big Tech incumbents.<\/p>\n Read more here.<\/a><\/p>\n<\/li>\n Tesla (<\/strong>TSLA<\/strong><\/a>)<\/strong> stock rose over 1% during premarket trading on Monday. According to a report<\/a> from Reuters, the board of directors has earned more than $3 billion through stock awards, an amount that far exceeds the value of those given to some of the biggest US technology firms.<\/p>\n Texas Instruments (<\/strong>TXN<\/strong><\/a>)<\/strong> stock fell 2% before the bell on Monday after receiving a downgrade to Sell from Buy from analysts at Goldman Sachs. The analysts cut their the price target to $156 from $200.<\/p>\n Teradyne, Inc. (<\/strong>TER<\/strong><\/a>) <\/strong>stock rose 4% during premarket trading on Monday. The technology company’s shares closed 5% down on Friday. Its stock has been up 58% so far this year.<\/p>\n Doximity Inc. (<\/strong>DOCS<\/strong><\/a>) <\/strong>stock rose almost 4% before the bell today. The healthcare group has seen its stock price fall 16% this year.<\/p>\n<\/li>\n iRobot (IRBT<\/a>) stock cratered in premarket after the maker of the Roomba vacuum cleaner declared bankruptcy on Sunday. Shares were trading below $1 apiece, down over 80% on Monday morning.<\/p>\n The struggling US company said it will go private, once it has been bought out by China’s Picea Robotics, its main manufacturer.<\/p>\n Reuters reports:<\/p>\n Read more here<\/a>.<\/p>\n<\/li>\n Yahoo Finance’s Jake Conley<\/a> takes a look at what investors need to know this week.<\/p>\n He reports:<\/p>\n With another 25 basis point cut in the rearview for the Federal Reserve<\/a>, attention is likely to focus on machinations around the next Fed chair to replace Jerome Powell, with reports late Friday suggesting<\/a> Trump sees either Kevin Hassett<\/a> or Kevin Warsh<\/a> being named to the post.<\/p>\n The week’s economic calendar will also continue to work through the backlog of delayed data from the government shutdown, with the November jobs report set for release on Tuesday and November inflation data due out Thursday morning.<\/p>\n In the corporate world, Wednesday will see Micron (MU<\/a>) report quarterly results, while investors on Thursday will get results from Accenture (ACN<\/a>), NIKE (NKE<\/a>), FedEx (FDX<\/a>), and Olive Garden owner Darden Restaurants (DRI<\/a>).<\/p>\n … The Federal Open Market Committee’s quarter-point rate cut on Wednesday marked the third such rate cut in 2025 and the most divisive of the year<\/a> among the committee, with three dissents split across both sides of the move.<\/p>\n Now, market attention is turning to the potential for 2026 cuts \u2014 the Fed is projecting only one \u2014 and the drama around who President Trump will choose to replace Chair Jay Powell when his term ends in May.<\/p>\n Read more here<\/a>.<\/p>\n<\/li>\n A trading week that ended with a thud also marked a turning point,<\/p>\n Yahoo Finance’s Hamza Shaban<\/a> reports:<\/p>\n A trading week that ended with a thud also marked a turning point. Markets showed signs that the next leg upward<\/a> won’t require Big Tech to lead the way.<\/p>\n Muscular corporate results and outlooks from a broadened set of sectors have powered lofty expectations. Projected returns<\/a> for the next year are driving the growth story, and the latest Fed rate cut has further emboldened a move into cyclical names.<\/p>\n “The first eight months of the year the market was dominated by momentum and AI plays; since then, the market has shifted as valuations, sustainability around margins, and debt controversy developed around the technology sector,” said Eric Teal, chief investment officer for Comerica Wealth Management, in a note on Thursday.<\/p>\n But weakened tech enthusiasm <\/a>leaves space for investor sentiment and returns to improve.<\/p>\n And from the perspective of Wall Street bulls, the more muted mood reflects a moment for the market to catch its breath, and suggests there’s room for investors to continue the rally.<\/p>\n … Some weakness in the AI trade could spur other sectors to rise<\/a>. As Thomas Shipp, head of equity research for LPL Financial, said in a note earlier this week, an increase in volatility and a retreat from the AI theme may be required for value stocks to outperform next year.<\/p>\n The broadening out will also be spurred on by an accommodating Fed, and a long period of small caps lagging behind their larger siblings, said Teal.<\/p>\n\n
Mon, December 15, 2025 at 9:06 PM UTC Dow, S&P 500, Nasdaq slip as AI trade gets hit\n
Mon, December 15, 2025 at 8:45 PM UTC No evidence of an AI investment ‘bubble’: UBS\n
Mon, December 15, 2025 at 7:46 PM UTC Bitcoin drops to $86,000 as ‘lack of conviction’ keeps a lid on crypto prices\n
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Mon, December 15, 2025 at 5:30 PM UTC Fed’s Williams sees rates as modestly restrictive, expects economy to pick up steam in 2026\n Mon, December 15, 2025 at 4:45 PM UTC Corporate America is scrambling to hire energy traders as the AI boom pressures electricity costs\n Mon, December 15, 2025 at 3:56 PM UTC Tesla leads ‘Magnificent 7,’ nears record as tech stocks trade mixed\n Mon, December 15, 2025 at 3:43 PM UTC Bitcoin drops below $87,000\n Mon, December 15, 2025 at 3:00 PM UTC Zillow stock plunges\n Mon, December 15, 2025 at 2:34 PM UTC Stocks rise at the open\n Mon, December 15, 2025 at 11:45 AM UTC Premarket movers: Tesla, Texas Instruments, Teradyne, and Doximity\n