Stock Focus Report – Market Analysis for December 12, 2025

Friday delivered a tech-flavored selloff, with the Nasdaq leading the retreat down 1.79% while the S&P 500 shed 1.10% and the Dow dropped a comparatively modest 0.50%. The damage was concentrated in mega-cap tech, where Broadcom (AVGO) cratered 11.4% and Dell (DELL) fell 6.2%, dragging the sector lower.

Oracle (ORCL) didn’t help matters after disputing reports about delays in its OpenAI data center buildout, though the company’s vague non-denial denial failed to calm investors. Meanwhile, Treasury yields continued their creep higher—the 10-year hit 4.19%—as bond traders parsed mixed signals from the Fed on whether the job market is truly weakening or just normalizing.

The bright spots were few but notable: GE Aerospace jumped 4.0% and Disney’s (DIS) Zootopia 2 box office dominance provided some cheer, but it wasn’t nearly enough to offset the tech wreckage. Bitcoin slipped 1.78% to $90,224, extending the risk-off vibe across digital assets.

The biggest story wasn’t a surprise earnings miss or economic data bomb—it was political. Trump told the Wall Street Journal he’s eyeing Kevin Warsh or Kevin Hassett for the next Fed chair and believes the president should have a say in interest rate decisions. That’s a direct challenge to Fed independence, and markets don’t love uncertainty around the central bank’s autonomy.

Meanwhile, the Fed itself is trying to manage the narrative on two fronts. It’s buying billions in T-bills (not QE, they insist—just “managing money-market conditions”), while top officials signal concern that job losses might be worse than headline data suggests. That mixed messaging left traders scratching their heads about whether the Fed’s rate cuts are done or just getting started.

Oracle’s disputed timeline for OpenAI infrastructure added fuel to the tech selloff, while Google (GOOGL) faced a €110 million asset freeze in France following a Russian court verdict. In pharma, Novo Nordisk (NVO) got EU backing for a higher Wegovy dose and GSK won support for its asthma drug, providing rare positive catalysts in healthcare.

Investor confidence took a hit Friday as political interference in monetary policy moved from theoretical to tangible. Trump’s explicit comments about wanting influence over Fed decisions reminded everyone that 2025 could bring major institutional changes—and markets hate that kind of uncertainty, especially when valuations are stretched.

The tech sector’s weakness reflects more than just political jitters. Oracle’s unclear OpenAI timeline, Broadcom’s mysterious plunge, and Dell’s decline suggest investors are finally questioning whether AI infrastructure spending can justify current valuations. When your narrative stocks start cracking, defensiveness spreads quickly.

Treasury yields grinding higher despite Fed rate cut expectations creates an uncomfortable backdrop. The 10-year at 4.19% isn’t alarming yet, but the steady climb suggests bond vigilantes aren’t buying the Fed’s dovish pivot—or they’re worried about deficit financing as the Fed buys T-bills while claiming it’s not QE. Either way, higher yields and falling tech stocks make for queasy Fridays.

Friday’s selloff wasn’t about one catalyst—it was the uncomfortable intersection of political uncertainty, tech valuation questions, and mixed Fed signals. When Trump openly discusses replacing Jerome Powell and influencing rate decisions, it injects a new variable into an already complex equation. Add tech stumbles from Oracle to Broadcom, and you’ve got a recipe for profit-taking.

The Fed’s positioning looks increasingly awkward. Officials worry about hidden job market weakness while simultaneously buying billions in Treasuries (definitely not QE, pinky promise) as yields rise. That cognitive dissonance won’t resolve quickly, and markets will stay jumpy until there’s clarity on whether we’re heading for more cuts or a prolonged pause.

Looking ahead, watch how tech responds to the Oracle uncertainty and whether the Broadcom selloff was company-specific or a broader AI infrastructure repricing. Bank of America (BAC) hitting all-time highs above its 2006 peak shows financials might offer rotation opportunities if tech continues struggling. But with Bitcoin weak, yields rising, and political pressure on the Fed mounting, next week could test whether buyers are ready to step in or if this selloff has further to run.