Bitcoin: Reversal or Breakdown next? 12/12/2025

HOT stories for today

Market wrap:

• U.S. stocks were mixed Thursday as investors rotated out of high-growth technology shares, lifting the Dow Jones Industrial Average and the S&P 500 to record highs while the Nasdaq fell. The Dow jumped 1.34% to a record close of 48,704.01, also hitting an intraday high, while the S&P 500 rose 0.21% to finish at a record 6,901.00. The Nasdaq Composite slipped 0.26%, weighed down by losses in major tech names. Oracle sank nearly 11% after posting weaker-than-expected revenue and boosting its spending outlook, dragging other AI-related stocks lower, including Nvidia and Broadcom. Economically sensitive shares such as Home Depot advanced, and small-cap stocks outperformed, with the Russell 2000 reaching new intraday and closing highs following the Federal Reserve’s rate cut.
• The rotation has bolstered expectations for a year-end rally, though some strategists warn that fading momentum in AI stocks and political and monetary policy risks could pressure markets next year. The world’s largest cryptocurrency, Bitcoin, struggled to gain traction this week, even as U.S. equities rallied and the Federal Reserve cut rates. Prices have remained rangebound, prompting traders to debate whether the recent consolidation signals a potential reversal higher or sets the stage for another breakdown. The lack of follow-through suggests that looser monetary policy and risk-on sentiment in traditional markets have yet to translate into sustained demand for digital assets.

Broadcom Slips as Strong AI Results Fail to Impress Investors

• Broadcom Inc. shares slid despite signs of accelerating demand for artificial-intelligence chips, as investors locked in gains after a sharp rally and questioned whether strong AI spending alone is enough to drive the stock higher. The chipmaker reported better-than-expected earnings and forecast that AI semiconductor revenue would double this quarter after rising 74% year over year in the October period. Broadcom also disclosed an additional $11 billion order from Anthropic for custom chips, lifting total orders on hand to more than $73 billion.
• Still, the stock fell as much as 4.5% in extended trading. After surging about 75% this year, Broadcom appears vulnerable to profit-taking, even on solid results, as enthusiasm around AI hardware shows signs of cooling. Chief Executive Officer Hock Tan said demand remains strong across custom AI chips and networking equipment, pushing Broadcom’s consolidated backlog to $162 billion. But with expectations already high, investors were left looking for a bigger catalyst to justify further gains.

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Stocks on the move:

• Vail Resorts (MTN): Shares climbed 9% after the ski resort operator reported fiscal first-quarter mountain revenue of $185 million, beating analysts’ estimates of $179 million. Real estate EBITDA also came in above expectations, according to FactSet.
• GE Vernova (GEV): The turbine maker slid nearly 5% after Seaport downgraded the stock to hold from buy, citing valuation concerns after a rapid run-up. GE Vernova shares have doubled over the past year and gained about 20% in the past month, closing at a record $723 on Wednesday following an investor event that outlined faster buybacks, a higher dividend and long-term targets.
• Eli Lilly (LLY): Shares rose 2% after late-stage trial data showed the drugmaker’s experimental obesity treatment, retatrutide, delivered what appears to be the largest weight loss yet while also easing knee arthritis pain.
• Ciena (CIEN): The networking-equipment maker jumped 6% after fourth-quarter earnings and revenue topped estimates. The company also issued fiscal 2026 revenue guidance that exceeded expectations, along with an upbeat forecast for the current quarter, according to FactSet.

Watchlist: AVGO, GOOGL, COST, LULU, RH, LLY, NVO, NVDA

Key Economic Events Today:

EST time

08:00 am: USD FOMC Member Paulson Speaks
08:30 am: USD FOMC Member Hammack Speaks
10:35 am: USD FOMC Member Goolsbee Speaks



Earnings

No significant earnings!




The TEFS Analyst team wishes you a successful day!