Reviewed by Gotrade Internal Analyst
Investors await inflation data as sector leadership continues to shift.
US stocks fell on Wednesday as investors continued rotating out of crowded AI leaders and into more defensively positioned, value oriented areas of the market. The S&P 500 slipped 1.16%, the Nasdaq Composite lost 1.81%, and the Dow dipped 0.47%.
The day’s pressure was tied to renewed scrutiny around data center spending and financing. Oracle (ORCL) dropped after a report said a key backer stepped away from financing a major data center project, though Oracle disputed the report and said the project is moving forward. The tone weighed on other AI linked names, with Broadcom (AVGO) and Nvidia (NVDA) among the notable laggards.
Under the hood, traders are treating the move as a continuation of the rotation from large cap growth into large cap value. The focus is shifting toward fundamentals such as free cash flow and balance sheet strength as markets look ahead to 2026.
Macro signals also stayed in view. Investors are watching upcoming policy decisions from the ECB, BOE, and BOJ, while US inflation data remains a key near term catalyst as November CPI is set to be the first inflation print released after the government shutdown.
📊 Market Wrap Dec 18th 2025
🧠 Analyst Notes
💬 Market Highlights
Procter & Gamble Extends Seven Day Rally
Procter & Gamble (PG) extended its rally to seven straight sessions as investors grew more constructive on its medium term growth outlook. Expectations around innovation led recovery, restructuring efforts, and steady category diversification are helping offset weaker year to date performance, with dividend yield and new leadership seen as additional support.
Micron Sees Margin Expansion Continuing on AI Demand
Micron (MU) reaffirmed that margin expansion is likely to continue into 2026, supported by AI and data center demand that remains well ahead of industry supply. The company highlighted tight market conditions, limited bit shipment growth, and a focus on higher value products such as SSDs and HBM, alongside strong free cash flow and disciplined capital spending.
Salesforce Strengthens AI Strategy with Qualified Acquisition
Salesforce (CRM) announced the acquisition of Qualified to strengthen its agentic AI capabilities in B2B marketing. The deal deepens AI integration across Salesforce’s platform, particularly in enterprise sales automation, and reinforces its push toward end to end AI solutions for corporate customers.
📅 Earnings Watch
Market tone continues to point toward a broader rotation rather than a breakdown, with leadership spreading beyond the most crowded trades. Attention now turns to inflation data and global central bank signals for clues on whether volatility persists into year end.
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