Markets Slide Ahead of CPI as FDX, NKE Take Focus 18/12/2025

HOT stories for today

Market wrap:

• U.S. equities retreated after a volatile session, weighed down by steep losses in semiconductor stocks linked to the artificial-intelligence trade. The S&P 500 and Dow Jones Industrial Average both notched a fourth consecutive decline, while the Nasdaq Composite underperformed, sliding 1.8%. Oracle shares fell more than 5% after the Financial Times reported that the cloud-infrastructure provider’s lead backer withdrew from a planned $10 billion data-center project in Michigan. 
• The report reignited concerns about the heavy capital requirements associated with large-scale data-center investments, pressuring chipmakers across the market. Broadcom dropped 4.5%, while Nvidia and Advanced Micro Devices also declined. Despite a recent rotation out of technology stocks, the sector remains on track to finish 2025 with gains of about 19%. Investors are now focused on November’s consumer price index, due Thursday, the first inflation reading released since last month’s U.S. government shutdown. FedEx and Nike are set to release their earnings reports after the market closes.

Micron Forecast Fuels AI Optimism

• Micron Technology issued an upbeat outlook for the current quarter, signaling sustained strength in memory demand driven by artificial intelligence workloads. The company forecast second-quarter revenue of about $18.7 billion, plus or minus $400 million, well above the $14.3 billion average analyst estimate. Gross margin is expected to reach roughly 67%, plus or minus one percentage point, reflecting tight supply conditions and rising prices for memory products used in AI data centers. Micron shares jumped about 8% in extended trading after the forecast, recovering from recent losses tied to a broader selloff in AI-related stocks.
•  Chief Executive Officer Sanjay Mehrotra said demand continues to outstrip supply across the industry, a dynamic he expects to persist into fiscal 2026. In the medium term, Micron will be able to meet only about half to two-thirds of demand from some major customers, he said, citing capacity constraints. The company reported fiscal first-quarter revenue of $13.64 billion, topping analyst expectations of $13 billion, while adjusted earnings of $4.78 a share also exceeded forecasts. Mehrotra highlighted broad-based margin expansion across Micron’s business units.

Stocks on the move:

• Texas Pacific Land (TPL): Shares of the Texas landowner jumped 8% after the company reached a deal with Bolt Data & Energy to develop large-scale data center campuses on its properties.
• Jabil (JBL): The electronics manufacturer slipped about 2% after giving back early gains of roughly 5% that followed an upbeat forecast. The company said demand tied to AI data centers is supporting results, with the stock up more than 45% year to date.
• 8Hut (HUT): Shares of the crypto mining and energy company surged 11% after it announced a partnership with Anthropic and Fluidstack to build AI-focused infrastructure.
• Recursion Pharmaceuticals (RXRX): The clinical-stage TechBio company climbed nearly 16% after JPMorgan upgraded the stock to overweight from neutral, citing its artificial-intelligence pipeline and raising its price target to $11, implying more than 160% upside from Tuesday’s close.

Watchlist: MU, JBL, ORCL, AVGO, NVDA, ACN, CTAS, DRI

Key Economic Events Today:

EST time

08:30 am: USD CPI
08:30 am: USD Unemployment Claims
08:30 am: USD Philly Fed Manufacturing Index


Earnings

BMO (Before Market Open): Accenture Plc. (ACN), Cintas Corp. (CTAS), Darden Restaurants (DRI)
AMC (After Market Close): Nike Inc. (NKE), FedEx Corp. (FDX), Heico Corp. (HEI)




The TEFS Analyst team wishes you a successful day!