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postUS stocks fell on Wednesday as investors weighed what the latest data and Federal Reserve comments mean for interest rate cuts, with tech stocks under pressure as Oracle (ORCL) stock slid.
The Nasdaq Composite (^IXIC) sank over 1%, while the S&P 500 (^GSPC) fell around 0.8%, with both backing off slight opening gains as tech weakness returned. The Dow Jones Industrial Average (^DJI) lost 0.3%, after US stocks finished mixed in Tuesday’s session.
After weeks in a data vacuum, Wall Street is trying to find a clear signal in a noisy November jobs report to pinpoint a path for interest rates next year. Markets are also waiting for the other data shoe to drop: Thursday’s update on consumer inflation in November.
In a clue to the path ahead, Fed governor Chris Waller said Wednesday that the central bank still has scope to cut rates, hinting at “50 to 100 basis points” of room. Another key policymaker, the New York Fed’s John Williams, is speaking at a separate appearance.
Meanwhile, AI trade worries rattled tech stocks again following a Financial Times report that Oracle’s $10 billion data center project has lost the backing of private lender Blue Owl Capital. It comes amid scrutiny of increasing use of debt and off-balance-sheet moves to fund tech companies’ capital spending on AI infrastructure, despite persistent questions over demand for the tech. Oracle shares fell nearly 6%.
That intensifies the spotlight on Micron Technology’s (MU) quarterly results, due after the bell on Wednesday. Its report should help paint a clearer picture of demand on the AI semiconductor side of the market, as the company supplies chips for Nvidia’s (NVDA) server systems.
Elsewhere in corporates, Netflix (NFLX) stock rose after Warner Bros. Discovery’s (WBD) board called on shareholders to reject a rival bid from Paramount Skydance (PSKY), questioning funding guarantees.
LIVE 15 updates
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Fed’s Waller favors more rate cuts next year
Yahoo Finance’s Jennifer Schonberger reports:
Read more here.
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AI chip stocks sink as tech names come under pressure
The tech-heavy Nasdaq Composite (^IXIC) led a partial market downturn as stocks diverged on Wednesday.
AI chip names fell across the board, with Google (GOOG) TPU supplier Broadcom (AVGO) sinking 3% and Nvidia (NVDA) dropping 2%. AI chipmaking machine producer ASML (ASML) also shed 3%, while contract semiconductor manufacturer TSMC (TSM) dropped nearly 2% and Nvidia rival Advanced Micro Devices (AMD) edged down just over 1%,
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Medline raises $6.3 billion in year’s biggest IPO
The biggest IPO of 2025 is getting in just before the finish line.
Medical supply giant Medline (MDLN) said late Tuesday that it had raised $6.26 billion in its IPO, selling a little over 216 million shares at $29 a piece, with the stock set to begin trading on Wednesday. The IPO values Medline at upwards of $50 billion, based on a total of roughly 1.8 billion Class A and Class B shares outstanding.
The deal caps the best year for the IPO market since 2021, with Wall Street’s outlook for deals and new issues even more optimistic heading into 2026.
Recent reports have indicated that SpaceX is likely to go public in 2026, with the company having recently struck a deal for insiders to sell stock in Elon Musk’s rocketry and satellite business that valued the company at $800 billion.
Major AI players like OpenAI and Anthropic are also expected to explore going public within the next 18 months, according to The Information. Database giant Databricks, which raised money at a $134 billion valuation this week, said it could explore a public offering as soon as next year.
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Oracle drops on debt concerns
Oracle (ORCL) shares fell nearly 4% Wednesday after the Financial Times reported that private lender Blue Owl Capital will not back a $10 billion deal for its next data center as the burgeoning AI cloud player rushes to secure computing capacity and investors scrutinize its mounting use of debt to do so.
The decline put Oracle shares down nearly 18% for the month. The stock fell after the company’s earnings last week showed its costs rising more than expected while bleeding more cash than anticipated. The tech firm’s $248 billion in off-balance sheet lease obligations revealed in its quarterly SEC filing added to investor fears over its growing debt pile, while its over-reliance on OpenAI to meet its ambitious revenue targets has also sent shareholders backpedaling.
Though Oracle execs said after its earnings results that it’s committed to maintaining an investment-grade credit rating — it currently has a BBB rating on its bonds — investors haven’t been so sure, piling into Oracle credit default swaps that saw spreads reach their highest level since 2009 last week.
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Stocks rise at the open
Stocks rose briefly at the market open as Wall Street weighed the latest jobs data and oil surged, while Oracle (ORCL) shares slid.
The S&P 500 (^GSPC) and the tech-heavy Nasdaq Composite (^IXIC) moved up nearly 0.2%. The Dow Jones Industrial Average (^DJI) added 0.3% after US stocks finished mixed in Tuesday’s session.
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General Mills stock rises as revenue tops estimates, guidance reaffirmed
General Mills stock (GIS) climbed about 1% in premarket trading after earnings missed estimates, but revenue came in better than expected for the quarter.
The Cheerios maker reported fiscal second quarter earnings per share of $0.78 on revenue of $4.86 billion. Wall Street analysts estimated earnings of $1.04 on revenue of $4.78 billion, according to S&P Global Market Intelligence.
General Mills’ efforts to invest in its brands, divest its North American yogurt business, and unfavorable trade comparisons weighed on the results, the company said.
For the full fiscal year, which ends in May, General Mills reaffirmed it expects net sales growth to range from a decline of 1% to an increase of 1%. Adjusted operating profit and adjusted diluted EPS are both expected to fall 10% to 15% for the year.
General Mills’ guidance was largely in line with analysts’ expectations. Although many on the Street believe the packaged foods company is facing some challenges, analysts noted that these challenges are already reflected in the stock price.
“Underlying fundamentals remain challenging, but we think many are of the view that this is largely reflected in Street estimates and with shares trading at a discount to PF peers on a historical basis and no major surprises expected for the print itself, many find it difficult to see how the stock could trade lower,” UBS analysts wrote in a note ahead of the results.
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Hut 8 shares surge as ex-bitcoin miner signs $7 billion AI data center lease
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America’s biggest banks are ending 2025 on top with big growth goals and markets ‘wide open’
Bank of America (BAC), JPMorgan Chase (JPM), Wells Fargo (WFC), and Citigroup (C) are setting ambitious plans for growth in 2026 as they wrap up an upbeat 2025.
Yahoo Finance’s David Hollerith reports:
Read more here.
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Warner Bros Discovery board urges shareholders to reject rival bid from Paramount
The contest for Warner Bros. Discovery (WBD) took a fresh twist as the Hollywood giant’s board urged shareholders to reject Paramount Skydance’s (PSKY) $108.4 billion offer, saying it was “inferior” to the current merger deal with Netflix (NFLX).
Shares of WBD and Paramount traded 1.6% and 1.8% lower, respectively, while Netflix stock rose 1.3% before the bell.
Reuters reports:
Read more here.
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Tesla’s Robotaxi progress gives investors proof of the AI dream
Yahoo Finance’s Hamza Shaban reports:
Read more here in the takeaway from today’s Morning Brief.
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Good morning. Here’s what’s happening today.
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Amazon said to be in talks to invest about $10 billion in OpenAI
Shares in Amazon (AMZN) ticked up in premarket after Reuters reported that it is eyeing a $10 billion investment in OpenAI (OPAI.PVT), citing a source familiar with the matter.
The potential deal, which could value the ChatGPT maker at over $500 billion, comes as some on Wall Street question the circularity of investments in AI providers and Big Tech.
Reuters reports:
Read more here.
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Premarket trending tickers: Lennar, Brent futures and Micron
Homebuilder Lennar (LEN) stock fell more than 3% before the bell on Wednesday after reporting a drop in its fourth quarter profit. The housing market has been very precarious over the last 12 months, as consumers have continued to be hindered by affordability concerns.
Brent crude futures (BZ=F) rose 2% and traded just below $60 a barrel on Wednesday after Present Trump ramped up pressure on Venezuela by ordering a blockade of sanctioned tankers.
Micron (MU) stock rose 3% before the bell on Wednesday. The chipmaker is due to report its first quarter financial report after the bell today.
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Oil gains after Trump orders blockade of tankers off Venezuela
Bloomberg reports:
Read more here.
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Bitcoin fatigue sets in as it heads for fourth annual loss
Bloomberg reports:
Bitcoin (BTC-USD) is headed for the fourth annual decline in its history, and the first one that didn’t coincide with a major scandal or industry meltdown.
The latest leg down came Monday, with a sharp sell-off that sent the original cryptocurrency falling as much as 3.7% during New York hours. Bitcoin is now about 7% lower for the year. It was trading at about $87,100 at noon in Singapore on Wednesday.
While the latest decline is a much milder correction than in the previous three down years, it’s happened against a vastly different backdrop. Since the last major crypto crash in 2022, institutional adoption has widened, regulation has matured, and the industry has found its arguably most important champion in US President Donald Trump.
The rapid lurch lower since bitcoin hit a record of over $126,000 in early October has confounded bulls and left cryptoassets struggling to find a footing. Volumes are low, investors are bailing on bitcoin ETFs and derivatives markets are showing a lack of appetite for betting on a rebound. Even massive buying from the dominant bitcoin whale — Michael Saylor’s Strategy Inc. (MSTR) — hasn’t been enough to turn things around.
“Most are surprised by the lack of follow-through despite so many positive catalysts,” said Pratik Kala, a portfolio manager at hedge fund Apollo Crypto.
Read more here.
