Updated: 4:40 PM ET (Dec. 17, 2025)
The Nasdaq Stock Market closed sharply lower on Wednesday as renewed anxiety around the “AI trade” hit megacap technology and chip leaders, sending the Nasdaq Composite down 418.14 points (-1.81%) to 22,693.32—a three-week low—despite a headline-grabbing IPO debut on the exchange and a late-day after-hours surge in Micron following blockbuster guidance. [1]
Below is what moved the Nasdaq today, what analysts are watching next, and the key forecasts shaping expectations into year-end and 2026.
Nasdaq closes at 22,693 as tech leads a broad risk-off move
After a brief early lift, selling accelerated through the afternoon and left the major U.S. benchmarks near session lows by the closing bell. The Nasdaq Composite fell 1.81%, while the S&P 500 lost 1.16% and the Dow slipped 0.47%. [2]
Market breadth on the Nasdaq showed how widespread the pressure was: decliners outnumbered advancers by more than 2-to-1, according to Reuters’ market snapshot. [3]
Even with Wednesday’s drop, the Nasdaq remains solidly higher year-to-date (roughly +17.5%), but it has now posted multiple down sessions in a row as investors reassess valuations and the cost of financing the AI buildout. [4]
The main catalyst: Oracle and the return of “AI capex” anxiety
Wednesday’s Nasdaq weakness centered on a familiar late-2025 fear: how Big Tech and AI infrastructure players fund massive data-center expansion—and how quickly that spending turns into profits. [5]
Oracle’s Michigan data center becomes the market’s flashpoint
Oracle shares fell about 5.4% after a report indicated that Blue Owl Capital would not back a roughly $10 billion data center project in Michigan—a facility tied to OpenAI-related infrastructure plans. [6]
Oracle later said discussions for an equity deal remain on track without Blue Owl, with its development partner (Related Digital) indicating construction is still expected to begin in Q1 2026. [7]
Reuters’ reporting also added color on why Blue Owl stepped away: the source cited less favorable lease and debt termsthan prior Oracle-related structures. [8]
Why this matters for the Nasdaq
Oracle has become a high-beta proxy for the AI infrastructure story. When doubts rise about financing (or returns), the selloff tends to spread quickly into semis, cloud, and “AI beneficiaries”—which dominate Nasdaq weightings. [9]
Semiconductors and megacap tech slide again
Chip and AI bellwether names were among the heaviest drags on Wednesday:
- Nvidia fell roughly 3.8%
- Broadcom dropped about 4.5%
- Other major chip and AI-adjacent names also declined, contributing to a steep down day for the semiconductor complex [10]
Nasdaq.com’s market recap noted the Philadelphia Semiconductor Index fell about 3.8%, underscoring how concentrated the pain was inside semis. [11]
The Financial Times framed the move as a broader reassessment of AI infrastructure economics—especially as large projects increasingly rely on complex financing and big-ticket capex. [12]
Energy was the bright spot as oil jumped on Venezuela headlines
While technology and growth stocks struggled, energy stocks rallied as crude moved higher after President Donald Trump announced a “blockade” of sanctioned oil tankers entering and leaving Venezuela, lifting oil producers even on an otherwise weak tape. [13]
Reuters highlighted strong gains in names such as ConocoPhillips and Occidental, both up more than 4% on the day. [14]
For Nasdaq watchers, the takeaway is mixed: higher oil can help energy earnings, but persistent energy-driven inflation pressure can complicate the rate outlook—especially with a key inflation report approaching. [15]
Rates and the Fed: Waller hints at cuts, inflation data is the next test
Despite the equity slide, the bond market tone was comparatively steadier. Nasdaq.com reported the 10-year Treasury yield around 4.151% late in the session. [16]
On the policy front, Reuters noted that Fed Governor Christopher Waller signaled the central bank still has room to cut rates amid a softening job market—comments that offered some support earlier in the day. [17]
The next potential volatility trigger is Thursday’s consumer inflation report from the Commerce Department, which traders will parse for what it implies about the path of rate cuts into early 2026. [18]
A big Nasdaq headline that didn’t stop the selloff: Medline’s blockbuster IPO
One of the most talked-about Nasdaq Stock Market developments today was not an index move—it was a listing.
Medline (MDLN) debuts in the biggest U.S. IPO since 2021
Medical supplies giant Medline began trading on the Nasdaq in a deal that raised $6.26 billion, valuing the company at about $46 billion in the largest U.S. IPO since Rivian’s 2021 listing, according to Reuters. [19]
The stock opened at $35 versus an IPO price of $29, and the debut fed optimism about a stronger 2026 pipeline for new listings. [20]
Barron’s reported Medline shares finished the day up more than 40% (closing around $41), underscoring strong investor appetite for large, profitable, “real economy” issuers even as growth/AI names sold off. [21]
IPO outlook: a constructive signal for 2026
Reuters pointed to 2025’s resilient IPO activity and noted expectations for a stronger 2026 slate, with high-profile names (including SpaceX) discussed as potential candidates for future listings. [22]
After-hours at 4:40 PM ET: Micron surges on blowout guidance
Just as the cash session ended on a sour note for tech, Micron provided a reminder that earnings and guidance can still overpower macro fear—at least for individual stocks.
Reuters reported Micron shares jumped about 14% in after-hours trading after the company forecast results far above analysts’ expectations, pointing to AI-driven demand and tight supply in key memory categories (including high-bandwidth memory used in AI systems). [23]
Micron’s outlook stood out because it directly addresses a question hanging over the Nasdaq today: Is the AI buildout producing tangible demand and pricing power—or just ballooning costs? Micron’s commentary leaned strongly toward the demand-and-pricing side of that debate. [24]
Technical and trend read: key levels traders are watching on the Nasdaq Composite
A MarketScreener technical snapshot around the close showed the Nasdaq Composite down 1.81% on the day and about -4.06% over five sessions, while still up roughly +17.52% year-to-date. [25]
That same snapshot listed nearby technical reference points many traders monitor:
- Resistance near 23,958
- Support levels cited around 23,025 and 22,043 [26]
With the index closing below the first cited support band, attention often shifts to whether buyers defend the next zone during the next risk event (in this case: Thursday’s inflation data). [27]
Forecasts and analyst views: what comes next for the Nasdaq and the AI trade
Wednesday’s tape wasn’t just about one headline—it reflected a growing split in forward-looking market views.
1) The “AI bubble may keep inflating” camp
Investing.com summarized Capital Economics’ view that today’s environment shows multiple bubble-like hallmarks, but that a full unwind may not happen in 2026 because momentum and earnings are still strong and today’s mega-cap leaders have profitable base businesses (unlike many dot-com era firms). [28]
2) The “cautious into 2026” camp
Investopedia reported Interactive Brokers chief strategist Steve Sosnick expects a modest decline for the S&P 500 in 2026 (around 6,500), tying his caution to stretched valuations, the maturing AI trade, and potential policy-related uncertainty—including Fed leadership transition dynamics. [29]
For Nasdaq-heavy portfolios, the implication is straightforward: if the market is entering a phase where investors pay less for growth duration and more for near-term cash flow, the Nasdaq can remain more volatile than broader benchmarks—especially around inflation prints and big-cap earnings. [30]
What to watch on Thursday
Here are the catalysts most likely to drive the Nasdaq next:
- Commerce Department inflation data and the rate-cut narrative (especially after Waller’s remarks). [31]
- Follow-through in AI infrastructure names after Oracle’s funding clarification and ongoing scrutiny of capex/financing structures. [32]
- Semiconductor sentiment after Micron’s guidance—whether strong memory demand can stabilize broader chip leadership. [33]
- IPO market tone after Medline’s successful Nasdaq debut, as investors gauge risk appetite beyond megacap AI. [34]
References
1. www.reuters.com, 2. www.reuters.com, 3. www.reuters.com, 4. apnews.com, 5. www.reuters.com, 6. www.reuters.com, 7. www.reuters.com, 8. www.reuters.com, 9. www.reuters.com, 10. www.reuters.com, 11. www.nasdaq.com, 12. www.ft.com, 13. www.reuters.com, 14. www.reuters.com, 15. www.reuters.com, 16. www.nasdaq.com, 17. www.reuters.com, 18. www.reuters.com, 19. www.reuters.com, 20. www.reuters.com, 21. www.barrons.com, 22. www.reuters.com, 23. www.reuters.com, 24. www.reuters.com, 25. www.marketscreener.com, 26. www.marketscreener.com, 27. www.marketscreener.com, 28. www.investing.com, 29. www.investopedia.com, 30. www.investopedia.com, 31. www.reuters.com, 32. www.reuters.com, 33. www.reuters.com, 34. www.reuters.com
