U.S. stocks fell on Wednesday, Dec. 17, as investors rotated further out of crowded AI winners and into more defensive positioning. The S&P 500 fell 1.16% to 6,721.43 and the Nasdaq Composite dropped 1.81% to 22,693.32, extending a multi-day skid. The Dow slid 0.47% to 47,885.97, a smaller hit but still a fourth straight down session.
The immediate catalyst was renewed anxiety about how AI infrastructure is being financed. Oracle sold off after reporting around its Michigan data-center build. Meanwhile, chips and mega-cap tech followed lower. Investors also kept one eye on Thursday’s delayed CPI release, with bond buying nudging yields down and reinforcing the idea that policy uncertainty, not just earnings, is setting the tone.
- Oracle fell 5.4% after a report on financing talks tied to a $10 billion Michigan data center, which Oracle disputed.
- AI-linked stocks slid in sympathy. Nvidia was down nearly 4% and AMD more than 5% in the same session, according to Yahoo Finance’s wrap.
- Energy stabilized late as crude rebounded. WTI traded around $56 after Venezuela tanker blockade headlines helped reverse Tuesday’s steep oil drop.
Next steps hinge on whether the market treats the Oracle episode as company-specific or as another sign that leveraged AI capex is hitting its credibility limit. If CPI comes in hot or messy due to shutdown-related collection issues, volatility could persist into year-end as investors reassess both growth multiples and the Fed’s ability to cut.
Positioning matters right now. If you’re exposed to the AI complex, prioritize balance-sheet strength and free cash flow. The market is starting to price that distinction much more aggressively.
