Stock indexes, including the S&P 500 and Nasdaq 100, closed lower on Wednesday. AI-infrastructure stocks and chip makers led the decline, along with a 2% drop in Bitcoin. Energy producers rose after a blockade on Venezuelan tankers. Fed comments were mixed, with dovish tones from Waller and slightly hawkish remarks from Bostic.

US economic focus this week includes data on unemployment claims, CPI, existing home sales, and consumer sentiment. Markets expect a 24% chance of a 25 bp rate cut by the FOMC in January. Overseas, the Euro Stoxx 50 fell, China’s Shanghai Composite rose, and Japan’s Nikkei recovered. Bond yields were mixed, with T-notes impacted by Fed comments and Japanese bond movements.

T-notes saw support from dovish Fed comments but faced pressure from a steepening yield curve. European bond yields were mixed, with Eurozone CPI revised downward. German IFO survey fell, UK CPI eased, and swaps don’t expect an ECB rate cut. Stock movers included AI-infrastructure and chip makers, cryptocurrency-exposed stocks, homebuilders, and energy producers.

Oracle, Brown-Forman, Paramount Skydance, Fortinet, and Bally’s Corp were among the biggest losers. General Mills, Albemarle, Lumentum Holdings, and Salesforce were top gainers. Earnings reports for 12/18/2025 include Accenture PLC, Birkenstock Holding Plc, CarMax Inc, Cintas Corp, and more. Author Rich Asplund did not hold positions in mentioned securities.

The article’s author’s views and opinions do not necessarily reflect those of Nasdaq, Inc.

Read more at Nasdaq: Stocks Settle Sharply Lower as Tech Stocks Routed