The market continues to show contrasting sentiment: yesterday’s records have been replaced by today’s caution, particularly noticeable in the technology sector.
On December 12, 2025, investors observed an unusual combination of euphoria and tension. Yesterday, broad indices showed strong growth: the Fed softened its tone, which became a signal for investors, and the Dow along with the S&P 500 closed at historic highs.
The Russell 2000 also rose, showing that money is gradually moving into cyclical companies, expanding the market beyond purely the technology segment. Meanwhile, the Nasdaq slightly declined due to a drop in Oracle shares, which worried market participants with rising AI-related costs, reminding of potential high-capitalization risks in AI.
Today, investors’ attention has shifted to company reports and their expenses on artificial intelligence technologies.
Broadcom reported good quarterly results, but the AI focus reduced margins, putting pressure on the stock price. Costco confirmed the trend of consumers seeking more advantageous deals, showing strong sales and profits, adding stability to the retail sector.
Lululemon shares rose significantly after raising its profit forecast and announcing the CEO’s departure, also heightening interest in a possible management contest. GE Vernova, after yesterday’s forecast upgrade and a $10 billion buyback, remains in the spotlight as one of the week’s most discussed companies. TSMC shows rare resilience, holding around the entry point despite AI-sector weakness.
For investors, the key lesson of the day is that yesterday’s growth was driven by broad market strength, not solely the AI sector, and today’s pressure on tech stocks is more related to rising AI expenses than the start of a full reversal.
The greatest interest amid current volatility is in GE Vernova, TSMC, and Costco — companies with stable histories and solid fundamentals. Oil shows moderate growth due to geopolitical factors, but the overall weekly trend remains weak, requiring careful attention to positions.
The situation demonstrates that in conditions of high uncertainty, it is important to combine monitoring AI trends with a focus on proven, stable companies.
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