18 Dec 2025 – Today's Market News – Nasdaq Slides 1.8% as AI Stocks Extend Selloff

Global Markets

United States

U.S. stocks fell for a fourth straight session, led by declines in large AI and chip-related names.

• S&P 500: 6,721.43 (–1.2%) – Fell because large AI and technology stocks dropped sharply, pulling the broader market lower.
• Dow Jones: 47,885.97 (–0.47%) – Declined as industrial and consumer stocks weakened, though losses were smaller than in tech-heavy indexes.
• Nasdaq Composite: 22,693.32 (–1.81%) – Fell the most because AI and chip-related stocks sold off again, weighing heavily on technology shares.

Europe

UK stocks went up after inflation came in lower, while German and French stocks fell as technology shares stayed weak.

• STOXX 600: 579.79 (flat) – Stayed unchanged as gains in UK stocks were balanced by losses in German and French stocks.
• FTSE 100: 9,774.32 (+0.92%) – Rose after UK inflation came in lower, increasing hopes for interest-rate cuts.
• DAX: 23,960.59 (–0.48%) – Fell as technology and export-heavy stocks weakened.

Asia

Asian markets leaned weaker, tracking Wall Street's tech-led drop, while China was steadier.

• Nikkei 225: 49,045.08 (–0.94%) – Fell as technology stocks dropped, following losses in U.S. tech shares.
• Hang Seng: 25,400.25 (–0.27%) – Declined as investors sold large technology and internet stocks.
• Shanghai Composite: ~3,875.69 (+0.14%) – Rose slightly as selling pressure eased and local stocks stayed stable.

Asset-Class Highlights

Equities

• U.S. mega-cap AI/chips: Names tied to AI spending fell again (examples include Nvidia and Oracle), pulling down technology-focused stock indexes.
• UK bank stocks: UK stocks rose after inflation came in lower than expected, raising hopes that the Bank of England may cut interest rates.
• Europe ex-UK tech: softer; European tech lagged as investors continued to question growth potential of AI spending.

FX

Currency markets were calm, with most moves driven by upcoming central bank decisions rather than fresh economic news.

• DXY (Dollar Index): 98.416 – Held firm as markets awaited major central-bank decisions.
• EUR/USD: 1.1739 – The euro stayed steady as investors waited for the European Central Bank's interest-rate decision.
• GBP/USD: 1.3367 – The pound stayed weak after UK inflation came in lower, increasing hopes for UK interest-rate cuts.
• USD/JPY: 155.76 – Investors prepared for the Bank of Japan meeting, where an interest rate increase is widely expected.

Commodities

Commodity prices were mixed, with oil rising on supply concerns while precious metals stayed mostly steady.

• Brent crude: $60.10/bbl (+0.7%) – Rose on supply-risk headlines tied to U.S. actions impacting Venezuelan oil flows.
• WTI crude: $56.38/bbl (+0.8%) – Followed Brent higher for the same supply-risk reason.
• Spot gold: $4,332.29/oz (–0.2%) – Prices fell slightly as the dollar remained strong and investors awaited important U.S. inflation data.
• Spot silver: $66.44/oz (+0.2%) – Stayed near record highs after a strong rally this week.

Volatility & Positioning

The VIX was 17.62, showing more caution than earlier in the month, but still not a 'stress' reading.

What Traders Are Watching

1. Bank of Japan decision (Fri): Markets are positioned for a rate hike, and the guidance matters as much as the move.
2. ECB and BOE decisions (Thu): BOE cut expectations strengthened after the UK inflation surprise; ECB is expected to hold.
3. U.S. inflation data: The next inflation readings — the Consumer Price Index (CPI) and the Personal Consumption Expenditures (PCE) index — could quickly change expectations about future interest rate cuts.
4. AI sentiment check: Investors are watching to see if the fall in AI-related stocks stays limited to those companies, or if it spreads and causes selling across the whole stock market.
5. Oil supply headlines: Venezuela-related headlines are moving crude day to day.