Markets NewsDec. 92025: Stocks End Mixed Day Before Fed Decision on Interest Rates

Bubble Concerns Not Deterring Bullish Investors

Almost nothing seems to rattle individual investors lately.

They’ve overcome fears about tariffsinflationand a potential stock market bubblecontinuing to buy their favorite stocks and ETFs all year long. Despite concerns about economic policyovervaluations in AI stocksand rising pricesinvestors are mostly optimistic about the stock market right nowaccording to Investopedia’s recent survey. More than 60% describe themselves as either optimistic or cautiously optimisticwhile less than a third say they are skeptical or hesitant.

The late-November selloff across the biggest stocks in the market—like Nvidia (NVDA)Amazon (AMZN)and Palantir (PLTR)—did not deter investor optimism. In factit may have emboldened them to buy moreadding to their positions in the most widely held stocks in their investors’ portfolios. According to the Schwab Trading Activity Indexor STAXSchwab clients took advantage of the drawdowns in those mega-cap stocks and bought the dip at one of the fastest paces in history.

They did so even though the majority of respondents to our survey think that AI-related stocks are in a bubbleand nearly half feel the same way about the biggest tech stocks in the market. More than half also believe cryptocurrencies like Bitcoin are frothydespite the 25% decline in the price of Bitcoin over the past month.

Read the full article here.

-Caleb Silver and Amanda Morelli

Updates From Two Big Tech Firms Land This Week. What It Could Mean for the AI Trade

Two tech giants shocked Wall Street with their earnings reports in September. Now they're under pressure to do it again.

Software giant Oracle (ORCL) will report quarterly results after the market closes on Wednesdayfollowed by semiconductor firm Broadcom (AVGO) on Thursday afternoon. Their shares are up 32% and 72%respectivelysince the beginning of the year—but the stockshave diverged in recent monthsreflecting the anxieties driving a shift in the AI investor debate. 

Wall Street is generally optimistic about both Oracle's and Broadcom's upcoming earnings reports. Analysts expect both companiesamong the biggest in the S&P 500to show signs that AI demand will remain strong into next year. But recent Goldman Sachs research suggests that sector stocks may not all be pulled higher by industry-level forces in the months ahead.

Oracle in early September supplanted Nvidia as the hottest AI play on Wall Street. The stock skyrocketed 36% the day after Oracle said its cloud computing backlog more than quadrupled to nearly $500 billion. Wall Street lauded the resultscalling them evidence of a “truly historic” quarter that confirmed “a seismic shift happening in computing.” 

But then reports indicated that nearly all of Oracle’s backlog growth spawned from a $300 billionmulti-year deal with OpenAIthe ChatGPT-maker that is expected to burn through more than $100 billion before turning a profit at the end of the decade. That raised concerns that too many of Oracle’s eggs were in one bigrisky basket.

Read the full article here.

-Colin Laidley

Here's How Much Traders Expect Broadcom Stock to Move After Earnings

Broadcom (AVGO) is slated to release its fiscal fourth-quarter results after the market closes on Thursdaywith traders expecting the chipmaker's stock could hit fresh record highs after the report.

Based on current options pricingBroadcom stock is expected to rise or fall by up to 6% by the end of the week. Based on Monday's closing pricethat would lift Broadcom's stock to around $425 on the high endfurther past the intraday record of $407 the stock set on Mondayor push it down to about $377.

Last quarterBroadcom's revenue hit a record $15.95 billion as the company topped estimatesprompting some analysts to call Broadcom a "Magnificent 8" stock that could continue to grow alongside Nvidia (NVDA) if the AI industry keeps expanding. Broadcom stock rallied following the reportsetting multiple record highs in the months since.

Analysts from Bank of America and Morgan Stanley each recently raised their price targets for Broadcom stockbut noted that the chip designer faces long-term risks. The analysts said that Alphabet's (GOOGL) Google is looking to design its own future generations of AI chips in houserather than the current generation that it has designed in partnership with Broadcom. That could put Broadcom's market share at risk if Google is successful and eventually looks to sell its designs to other current Broadcom customers.

Read the full article here.

-Aaron McDade

Black and Hispanic Families Are Getting Left Behind in the Wealth Race

The average white American household added roughly $85,000 in wealth this yearcompared to an increase of about $25,000 for average Black and Hispanic householdsthanks primarily to surging stock values.

That's according to an analysis out this week from economists at Oxford Economicswho found that Black and Hispanic families are falling behind their white counterparts on a raft of economic metrics.

What's most remarkableaccording to Oxford's lead U.S. economist Bernard Yarosis the fact that white households on average accumulated more than three times the household wealth of Black and Hispanic households this year.

"White households hold more than 80% of the nation's wealthand the average white household has accumulated substantially more net wealth over the past year than the average Black or Hispanic household," Yaros wrote.

White households tend to be more heavily invested in stocksso they've benefitted from 2025's AI-fueled equities boom. Black and Hispanic householdson the other handtend to have more wealth tied up in their homesthe values of which have risen more slowly recently.

Read the full article here.

-Diccon Hyatt

High Food Prices Got You Down? Some Companies Are Cutting Them

Shoppers are turning up their noses at pricier provisions. That pushback is prompting some major players to regroup.

PepsiCo (PEP) is the latest food and staples seller to announce price cuts. Sales improved where the New York-based company tested lower price points with retailerswho gave its snacks more shelf spaceCEO Ramon Laguarta said on a conference call Tuesday.

Activist investor Elliott Investment Management had a hand in creating Pepsi's new strategy. Pepsi unveiled a strategy to improve its U.S. performance and lift its stocklowering prices but also attempting to lure shoppers with more natural snacks and reducing costs by cutting 20% of its product lineup.

"We're choosing to invest in everyday values or reset the pricethe consumer pricesfrom our key brands," Laguarta saidaccording to a transcript made available by AlphaSense.

Pepsi didn't respond to Investopedia's request for details about price and selection cuts in time for publication. The announcement from the maker of Cheetos and Sabra dips comes after a number of food manufacturers and merchants publicized selective price rollbacksincluding General Mills (GIS), Walmart (WMT), Target (TGT) and Kroger (KR).

Read the full article here.

-Sarina Trangle

The Fed's Two-Day Meeting Starts Today—Here's What You Need to Know

The Federal Reserve seems likely to cut interest rates again this weekbut it probably won’t do so as a united front.

Fed officials are split on whether the economy needs lower interest ratesa debate that starts Tuesday and will also be on display when the Federal Open Market Committee’s decision comes out at 2 p.m. ET Wednesday. 

The more dovish FOMC officials are likely to prevail. The Fed is widely expected to cut its benchmark rate by 25 basis points to a range of 3.5% to 3.75%amid signs that the job market is softening.

Analysts don’t expect it to be a complete defeat for the FOMC’s hawksa couple of whom are likely to vote against a rate cut.

Read the full article here.

-Polo Rocha

JPMorgan Chase Stock Leads Dow Decliners After Executive Says 'Fragile' Consumer Environment

Comments by a JPMorgan Chase (JPM) executive sent the stock and the Dow lower Tuesday afternoon.

Marianne LakeJPMorgan Chase's CEO of Consumer & Community Bankingsaid at the Goldman Sachs U.S. Financial Services Conference that she "would characterize the environment as being a little bit more fragile."

JPMorgan Chase stockwhich had been marginally higher on the dayfell sharply on the comments and was down about 4.5% in recent tradingthe worst performer and the blue-chip index.

Even with today's declinesthe bank's shares have risen by more than 25% this year.

SAVE Plan Agreement Triggers New Repayment Decisions for 7.7M Student Loan Borrowers

The Department of Education announced early Tuesday that it has moved one step closer to shutting down the Saving for a Valuable Education repayment plan.

On Tuesday morningthe Department of Education announced a joint agreement with the State of Missouri and several other states that had filed a lawsuit to block the SAVE plan last year. Pending court approvalthe agreement will end the SAVE plan.

The SAVE planan income-driven repayment plan created by former President Joe Biden's administrationhas been embroiled in several lawsuits for more than a year. Since July 2024the plan's millions of borrowers have been in an administrative forbearancewhere payments are not duebut they are unable to make progress toward forgiveness.

The Department of Education announced that it will no longer allow borrowers to move to the SAVE plan and will deny any pending transfer applications. It also said it will transition the more than 7.7 million borrowers still in the SAVE plan to one of the existing repayment plans.3

"The Departmentthrough its Office of Federal Student Aid (FSA)will provide support to borrowers currently enrolled in the illegal SAVE Plan in selecting a newlegal repayment plan," the Department said in a press release. "The Department will begin direct outreach to impacted borrowers to provide guidance about how to repay their student loans in the coming weeks."

Read the full article here.

-Elizabeth Guevara

Nvidia Wins Trump's Approval to Sell H200 AI Chips to ChinaBut There's a Catch

Nvidia could be set to sell more of its advanced chips to Chinawith some conditions.

President Trump posted on Truth Social Monday that Nvidia (NVDA) will be allowed to sell its H200 AI chips to "approved customers" in Chinain exchange for a 25% cut of revenues going to the U.S. government.

"The Department of Commerce is finalizing the detailsand the same approach will apply to AMDInteland other GREAT American Companies," Trump said in his post.

The H200which is a generation behind Nvidia's Blackwell linehad been banned for sale to China previously on national security concernsand its approval comes just months after Nvidia's less advanced H20 was greenlighted by President Trump in exchange for a 15% revenue-sharing deal.

The move is expected open the door for more approvals for Nvidia and other chipmakers like rival Advanced Micro Devices (AMD)though Chinese limitations on purchases based on security concerns could still hold back sales.

William Blair analysts told clients Monday it "remains unclear" if any sales will be madegiven China's government may discourage firms from buying H200 chips, as it has with the H20.

Nvidia shares were little changed in recent trading. They've gained close to 40% since the start of the year.

-Aaron McDade

AutoZone Stock Drops on Weaker-Than-Expected ProfitSales

AutoZone (AZO) shareholders did not like what they saw from the retailer's fiscal 2026 first-quarter results.

The Memphis-based auto parts chain was the worst performer in the S&P 500with shares down nearly 7% after the company reported earnings of $31.04 per share on net sales that rose 8% year-over-year to $4.63 billion. Analysts surveyed by Visible Alpha were looking for $32.22 and $4.65 billionrespectively.

Gross profit margin was 51%down 203 basis points from a year ago. The decrease "was driven by a 212 basis point non-cash LIFO impactpartially offset by other net margin improvements," AutoZone said. Operating expenses rose to 34% of sales from 33.3% last year.

After today's sharp declinesshares of AutoZone are up less than 10% this year.

AI vs. Human Advisors: What Americans Really Think About Retirement Planning

Retirement is keeping Americans up at night. Almost 7 in 10 say financial uncertainty has made them feel depressed and anxiousup 8% from 2023according to Northwestern Mutual's 2025 Planning and Progress Study. Meanwhile51% told surveyors they'll outlive their savings.

That anxiety is pushing people to seek helpas Americans are increasingly turning to human advisors and digital toolsincluding robo-advisors and AI-powered planning appsto get their retirement on track.

The anxiety cuts deepest for younger Americans. Among Gen Z and Millennialsabout 4 in 10 say they feel depressed or anxious about their finances on at least a weekly basis—up significantly from 2023.

There's evidence that professional help works: three-quarters (76%) of Americans with a financial advisor describe their finances as "strong," compared with just 44% without one. But only about 27% of Americans work with a traditional advisoras fees and balance requirements put them out of reach for many.

That gap is driving experimentation. In a 2024 Ipsos/BMO pollabout 37% of Americans said they were already using AI to help them manage their moneymost commonly to learn about personal financebuild budgetsor evaluate investment ideas.

Yet almost two‑thirds in the same survey said AI is incapable of understanding how emotions impact financial decisions—exactly the kind of subtlety that matters for decisions around retirement. In other wordspeople seem willing to let an algorithm run the numbersbut want a human being to double-check a financial plan and have the ability to adjust or override it.

Read the full article here.

-Isabel O'Brien

Walmart Shares Little Changed in Nasdaq Debut

Walmart (WMT) shares moved to the Nasdaq Tuesday morning. They had a quiet debut in the opening minutes of trading.

Shares of the world's largest retailer were little changed about 30 minutes into the session. They are up about 25% this year.

Walmart made its public debut on Oct. 11972when the firm listed on the New York Stock Exchange. The company decided to move to the Nasdaq following what it said was "an evaluation of several factorsincluding trading executionbrand alignmentand a shared focus on technology-driven innovation to support Walmart's position as the world’s leading omnichannel retailer."

"Nasdaq's focus on technology and its support for companies driving digital transformation align perfectly with our strategic vision," outgoing CEO Doug McMillon said. "This is an exciting next chapter as we continue building a frictionless future for our customersmembersassociatesand shareholders.”

McMillon will be retiring at the end of Januarywith John Furner set to become CEO on Feb. 12026.

"We are excited for what lies ahead,” McMillon added. "With John Furner as CEOWalmart will continue to innovate and evolve with a relentless focus on customerstechnologyand data-driven decision making."

Here's How Much Traders Expect Oracle Stock to Move After Earnings Wednesday

Oracle (ORCL) is set to report its latest quarterly results after the market closes on Wednesdaywith traders expecting a big move in the tech giant's stock following the report.

Options pricing suggests traders anticipate the stock could swing nearly 10% in either direction by the end of the week. A move of that size from Monday's close could bring the stock to a new record above $240 at the high endor drag it down to $199 at the low endwhere it was late last month.

Oracle's stock hit a record high following the database giant's last quarterly report in Septemberimpressing investors with a record backlog on booming AI demand. The stock has pulled back in recent monthshoweveramid worries about an AI bubblewith Oracle's moves to take on new debt and its reliance on a few big customers adding to concerns.

Bullish analysts at Citi suggested ahead of Wednesday's report that they view worries about Oracle's debt health and recent sell-off as overdonethough they'll be watching closely for more clarity from Oracle on its plansalong with evidence that AI-driven demand for its offerings is broad-based.

Oracle is seen reporting adjusted earnings per share of $1.65 on a 15% year-over-year jump in revenue to $16.18 billion for the fiscal second quarteraccording to estimates compiled by Visible Alpha.

Among the 12 analysts with current ratings tracked by Visible Alphaeight consider Oracle's stock a "buy," compared to three neutral ratingsand one call to sell. Their mean target around $317 would suggest over 40% upside. The stock has added about a third of its value in 2025 through Monday's close.

-Aaron McDade

Ares Management Stock Pops on S&P 500 Inclusion

Ares Management (ARES) will be joining the S&P 500. Investors are cheering the news.

After the bell yesterdayS&P Dow Jones Indices announced that Ares Management will replace Kellanova (K) in the benchmark index before markets open this ThursdayDec. 11.

Kellanovathe parent of such brands as PringlesCheez-Itand Pop-Tartsis being acquired by Mars Inc. in a deal expected to close Thursday after it received European Commission approval yesterday.

Ares shares surged 8% before the bell. Should they open with that percentage increasethey would be near flat for the year.

This Wall Street Expert Is Less Bullish on Big Tech Stocks Now. Here's Why

Why ask for the moonwhen there are plenty of stars to go around? That's the latest take from a Wall Street expert regarding the S&P 500.

Dr. Ed Yardenifounder of Yardeni Researchsaid on Monday that his firm was ending its 15-year recommendation that investors be overweight the S&P 500's tech and communications sectors—effectively meaning they should prefer them to the rest of the stocks in the index. The prominent Wall Street economist and market strategist joins other investment professionals who have recently turned sour on the tech behemoths that have have dominated the benchmark index.

What's changed about the Magnificent 7—Nvidia (NVDA)Apple (AAPL)Alphabet (GOOG)Microsoft (MSFT)Amazon (AMZN)Meta Platforms (META)and Tesla (TSLA)—is that they've started to more "aggressively" compete with each otherand have rivals coming out of the woodwork regularlyYardeni told media networksincluding Bloomberg TV and CNBC.

The problem is that betting on the Mag 7 has worked too wellwith the tech and comms sectors now accounting for a record 45% of the benchmark index's market capitalizationYardeni said. While that may be justified by their earnings share also climbingtheir overall riskiness compared to the rest of the index has also risen.

"They used to just operate in their own moats and kind of leave each other alonebut I think we're now having a competitive situation," Yardeni said on CNBC. "Not only that but I think we're going to find out startups are coming [to] challenge some of their technologies."

Read the full article here.

-Crystal Kim

Stock Futures Tick Higher as Fed Meeting Begins

Futures contracts connected to the Dow Jones Industrial Average were up 0.1%.

S&P 500 futures were 0.1% higher.

Nasdaq 100 futures were fractionally higher.