S&P 500 Slips as Oracle’s Weak Results Hit AI Stocks; Dow Opens Higher
S&P 500 drops 0.7% as Oracle’s weak earnings hit AI stocks, while the Dow rises 0.3%. Get live market updates, Visa upgrade, Disney-OpenAI deal, and jobless claims report.
Traders work on the floor of the New York Stock Exchange as technology stocks slip following Oracle’s earnings report, December 11, 2025.
The U.S. stock market opened mixed on Thursday as disappointing earnings from Oracle dragged down major technology and AI-linked stocks, halting the momentum sparked by the Federal Reserve’s latest interest rate cut.
The S&P 500 fell 0.7%, while the Nasdaq Composite dropped 1.3%. In contrast, the Dow Jones Industrial Average gained 170 points (0.3%), lifted by financial and blue-chip stocks.
Oracle’s shares plunged 14% after the company reported weaker-than-expected quarterly revenue and signaled increased spending, raising concerns about its growing debt load. The results intensified debate about how soon tech giants will see meaningful returns from massive AI investments.
Other major AI-related stocks also fell in early trading, with Nvidia slipping 3%, AMD down 4%, and CoreWeave declining 6%.
Fed Optimism Cools After Market Rally
The downturn comes just a day after the S&P 500 closed near a new record high. On Wednesday, the Federal Reserve announced its third interest rate cut of 2025, reducing the benchmark rate to 3.5%–3.75% and signaling a slower path ahead.
Fed Chair Jerome Powell said the central bank is prepared to “wait and see” how economic conditions evolve, noting that higher tariffs under the Trump administration have continued to fuel inflationary pressure.
Small-cap stocks outperformed on Wednesday, with the Russell 2000 closing at a record high due to their greater sensitivity to falling borrowing costs.
Analysts Urge Caution
Market strategists warned that volatility may rise as uncertainties surrounding the pace of rate cuts and mixed economic data build.
Chris Zaccarelli of Northlight Asset Management said optimism may fade if investors realize that the timeline for lower rates could be “longer than expected — or may not materialize at all.”
Ellen Hazen of F.L. Putnam Investment Management added that conflicting signals from the economy could lead to “higher volatility and risk premia” as markets head into 2026.
Market Highlights
Visa Upgraded by Bank of America
Bank of America upgraded Visa to buy, calling it a “great business on sale.” The firm said Visa’s stablecoin integrations strengthen its competitive moat. Shares rose 3% in morning trade.
Markets at the Opening Bell
- S&P 500: –0.4% at open
- Nasdaq Composite: –0.7%
- Dow Jones: +146 points (+0.3%)
Disney Signs $1 Billion Deal With OpenAI
Disney has finalized a landmark $1 billion licensing and equity deal with OpenAI. The three-year agreement allows OpenAI’s video generator Sora to use more than 200 Disney characters, with some fan-created content set to appear on Disney+. Disney will also invest $1 billion in OpenAI and gain warrants to increase its stake.
Industry analysts say the deal marks a major shift as Hollywood begins formal partnerships with AI companies after years of legal battles over unauthorized content use.
Jobless Claims Surge
Initial jobless claims rose sharply to 236,000, up 44,000 from the prior week, exceeding expectations. States such as California, Illinois, and New York saw the largest increases. Continuing claims fell to 1.84 million, below estimates.
