Welcome to How Are Markets.
Hump day is here, and it’s a bloody one. Markets fell today, especially tech, over growing concerns around who’s really funding the AI infrastructure buildout. Fears are growing day by day as we see AI spending increase with no returns to show for it.
Warner Bros. officially favored Netflix over Paramount today.
Watch out for the YoY CPI Inflation report tomorrow morning. A miss upward would undoubtedly hurt the market even more.
See the full breakdown below!
📊 Market Close: 12/17/25
Nasdaq (-1.80%)
S&P 500 (-1.20%)
Dow Jones (-0.50%)
Bitcoin (-1.24%)
Gold (+0.25%)
📰 Major Headlines
Warner Bros. Board Picks Netflix 🍿
In a significant escalation, the Warner Bros. Discovery board unanimously urged shareholders to reject Paramount’s $108 billion hostile bid.
Despite Paramount's higher all-cash offer ($30/share), the board officially backed the Netflix merger ($27.75/share), citing "significant risks" and a lack of firm financing guarantees from Paramount’s backers.
Jobs Data & Retail Sales ❄️
Markets are still uneasy following yesterday's "mixed" jobs report, which showed the unemployment rate climbing to 4.6%.
Compounding this, retail sales for October came in flat (0.0%), missing estimates.
The AI Trade De-risking 📉
Reports of wobbly financing for major AI data center projects (including Oracle’s $10B Michigan project) sparked fresh fears that the AI buildout is becoming too expensive.
This sent the Philadelphia Semiconductor Index (SOX) down nearly -4% and Oracle down -5%.
Energy Prices Hit 4-Year Lows ⛽
While oil stabilized slightly late in the day, the energy sector remains under pressure after WTI Crude crashed below $55 this week. High supply and weakening global demand continue to cap prices.
📈 Earnings & Company News
MDLN (+41.3%): Medical supply giant Medline made a huge splash in its IPO. The largest IPO of 2025, the company raised $6.26 billion, with shares closing at $41 after opening at $29. Investors piled in, with some seeing the profitable, NON-AI, cash-generative business as a "safe haven" amid current tech volatility.
AMD (-5.27%): Concerns that Chinese scientists have developed a prototype lithography machine to rival Western tech, combined with the broader "AI bubble" anxiety, led to a sharp sell-off for the chipmaker.
AVGO (-4.48%): Resumed its steep decline.
NVDA (-3.81%): Slid in tandem with the broader semiconductor sector. As the "picks and shovels" of the AI trade, Nvidia is hypersensitive to any news regarding data center financing or a slowdown in infrastructure spending.
🗓 Upcoming Economic Releases
Thursday, Dec 18 - Consumer Price Index (CPI) for Nov
The core measure of inflation (excluding food and energy). A cool reading is needed to maintain optimism about further rate cuts in 2026, while a hot reading would make the Fed's rate cuts much more unlikely.
Forecasting 3.1% growth YoY
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— Gavin, How Are Markets
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⚠️ Disclaimer: I’m not a financial advisor — this newsletter is for informational and educational purposes only. Nothing here should be taken as financial advice or a recommendation to buy or sell any securities. Do your own research before making investment decisions.