Quadruple Witching Fuels Market Volatility 19/12/2025

HOT stories for today

Market wrap:

• US stocks rebounded on Thursday, with the S&P 500 and the Dow Jones Industrial Average snapping four-day losing streaks. The Nasdaq Composite climbed 1.4%, led by a rebound in technology shares that pared losses from the prior session. Equities advanced after a softer-than-expected inflation report for November bolstered optimism that the Federal Reserve could begin cutting interest rates in 2026. The consumer price index rose 2.7% year over year, undershooting forecasts. Some economists cautioned, however, that quirks in the data in the first CPI release since the government shutdown this fall could result in firmer inflation readings in December. Large-cap technology stocks and semiconductor makers also gained after Micron Technology issued stronger-than-expected revenue guidance for the current quarter, citing demand that “substantially exceeds supply for the foreseeable future.”
• The outlook helped steady sentiment following recent volatility tied to the artificial intelligence trade. All seven members of the so-called Magnificent Seven ended the session higher. Still, semiconductor shares remain about 8% below their recent peaks. Markets are bracing for heightened volatility on Friday, when options tied to stocks, indexes, exchange-traded funds, and futures are set to expire in an event known as “quadruple witching.” More than $7.1 trillion in notional options exposure is scheduled to roll off, the largest expiration on record, according to Goldman Sachs.

Oracle Jumps on Reported TikTok US Venture

• Oracle Corp. shares jumped in late trading after a report said TikTok’s parent company, ByteDance Ltd., has signed agreements to form a US joint venture majority-owned by American firms. This move could cement Oracle’s role as a key technology partner. The deals were signed with Oracle, private-equity firm Silver Lake, and MGX, an arm of Abu Dhabi’s sovereign-wealth fund, according to an internal memo reviewed by Bloomberg News. Oracle’s stock rose more than 5% after hours, adding to gains from the regular session. TikTok Chief Executive Officer Shou Chew told employees that the new venture would have authority over data protection, content moderation, and commercial operations in the US, Bloomberg reported. The structure is intended to address longstanding national security concerns related to the app’s ownership and data practices. For Oracle, the arrangement could provide a durable boost to its cloud business.
• “This would secure TikTok as a key customer and could drive meaningful upside for the non-AI portion of Oracle’s business through higher-margin, long-term workloads,” said Mizuho analyst Siti Panigrahi. The agreements follow efforts by the Trump administration earlier this year to broker a deal that would position Oracle as the security provider for a US version of TikTok. Still, the proposal faces hurdles, including approval from Chinese authorities. Chew’s memo did not address Beijing’s stance, Bloomberg said. Negotiations have centered on control of TikTok’s recommendation algorithms, a focal point of US security concerns after multiple deadlines to ban the app passed without resolution.

Stocks on the move:

• Nike (NKE) reported fiscal second-quarter earnings and revenue that beat Wall Street estimates, supported by strength in North America that helped offset weaker sales in China. The shares fell about 10% in extended trading as investors focused on the slowdown in China and the ongoing impact of higher tariffs on profitability.
• FedEx (FDX) shares edged higher after the delivery company posted fiscal second-quarter results that topped expectations. FedEx reported adjusted earnings of $4.82 a share on revenue of $23.47 billion, compared with LSEG consensus estimates of $4.11 a share and $22.79 billion.
• Rocket Lab (RKLB) jumped nearly 8% after the aerospace company completed the launch of its STP-S30 mission for the US Space Force’s Space Systems Command, finishing the mission five months ahead of schedule. Shares of peers also advanced, with AST SpaceMobile (ASTS) gaining about 5%, Virgin Galactic (SPCE) rising roughly 3% and ViaSat (VSAT) adding around 1%.
• GE Vernova (GEV) climbed almost 4% after Jefferies upgraded the stock to buy from hold. The firm cited accelerating demand for power infrastructure and the company’s pullback from its underperforming offshore wind business as catalysts for stronger earnings growth.

Watchlist: NKE, FDX, ORCL, RKLB, TLRY, COIN, NVDA, AVGO, RDDT

Key Economic Events Today:

EST time

08:30 am: USD FOMC Member Williams Speaks
10:00 am: USD Consumer Sentiment, Inflation Expectations
10:00 am: USD Existing Home Sales



Earnings

BMO (Before Market Open): Paychex (PAYX), Carnival (CCL), Lamb Weston (LW)




The TEFS Analyst team wishes you a successful day!