Wall Street ends lower; fears of AI bubble and inflation send investors away

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Wall Street ends lower; fears of AI bubble and inflation send investors away

By reuters.com
Publication Date: 2025-12-12 00:00:00

  • Indexes fall: Dow 0.51%, S&P 500 1.07%, Nasdaq 1.69%
  • Nasdaq marks lowest close since Nov 25
  • Broadcom falls 11% as margin pressures add to AI payoff jitters
  • Lululemon climbs 9.6% after CEO exit, profit forecast boost
  • Investors look ahead to jobs and inflation data

Dec 12 (Reuters) – The S&P 500 and the Nasdaq closed down more than 1% on Friday with investors leaving technology for other sectors as Broadcom and Oracle fueled concerns about an AI bubble and rising U.S. Treasury yields added pressure after some policymakers spoke out against easing monetary policy.

Treasury yields rose after a group of Federal Reserve officials who voted against the central bank’s interest rate cut this week voiced worries that inflation remains too high to warrant lower borrowing costs.

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Broadcom (AVGO.O), opens new tab shares tumbled 11.4% after the chipmaker warned of slimmer future margins, causing renewed concerns about the profitability of surging AI investments.
Oracle (ORCL.N), opens new…

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