TheDrop Market Analysis, 12/12/25
- Alexangel Ventura
- 3 days ago
- 1 min read
Stocks sank on Friday as tech enthusiasm dwindles.
The S&P 500 index sank 1.07%, the tech-heavy Nasdaq Composite fell 1.69%, the Dow Jones Industrial Average rose 0.51%, and the small cap-heavy Russell 2000 index rank 1.51%. The VIX volatility index surged 6% as investors sold off en masse many Big Tech stocks amid current market uncertainty.
Bond markets continued their rally as a result of the Federal Reserve's 25 basis points interest rate cut, with the 5-Yr Bond Rate surging by just under 1%, and the 10-Yr Bond Rate rose by 1.28%. While cryptocurrencies like Bitcoin and Ethereum sold off, gold proved to be an overperforming asset, with it rising 0.39% during trading hours. The pessimism of the tech industry contributed to the decline of valuations of many key cryptocurrencies.
Markets largely receded as investors feel more uncertain about the future vitality of the Big Tech and Artificial Intelligence industries, with Oracle, a leading AI investor, falling by double digits yesterday as its earnings report proved to be lackluster given the sheer magnitude of investment spending. And, Broadcom's earnings report only exacerbated the already depressed sentiments financially, with its ticker AVGO falling by 11.4%.
Big Tech stocks had an overall bearish day, with Nvidia leading losses with its 3.27% fall in price per share, now sitting by over a dozen dollars per share away from its peak. Though, Tesla stock made some respectable gains as robotaxi hype expands, leading to its 2.7% rise.
