U.S. stocks closed lower with the S&P 500 and Nasdaq hitting three-week lows as AI stocks were dumped. Dow Jones fell 0.5%, S&P 500 slid 1.2%, and Nasdaq tumbled 1.8%. Tech, industrials, and consumer discretionary sectors were worst hit. Fear gauge VIX rose 6.92% to 17.62. Decliners outnumbered advancers.

AI stocks continued to decline, led by Oracle’s report on Blue Owl Capital. Oracle refuted the report but shares fell 5.4%. Other AI stocks like Broadcom and Amazon also dropped. December saw AI stocks struggle, losing over 11%. Investors await CPI data to gauge Fed’s policy outlook for 2026.

Zacks is naming the top 10 stocks for 2026, with past performance surpassing the S&P 500. Director of Research is selecting from 4,400 companies to reveal the top 10 stocks on January 5. Don’t miss out on these picks for the year ahead. Download free stock analysis reports for Oracle, Amazon, Broadcom, and Blue Owl Capital.

Read more at Nasdaq: Stock Market News for Dec 18, 2025