Published: 15 December 2025,06:14
Daily Market Analysis New
*The Fed’s easing has provided a structural tailwind for equities, yet recent results show that lower rates alone are no longer sufficient to justify stretched valuations, particularly in large-cap technology.
*Oracle’s earnings disappointment has triggered a reassessment of the AI and enterprise software narrative, highlighting that monetization and execution matter more than thematic exposure alone.
*Upcoming U.S. labor market releases are critical for shaping growth expectations and the Fed’s policy path, with the potential to either stabilize sentiment or amplify volatility across Wall Street.
Market Summary:
U.S. equity markets traded with increased volatility as investors balanced the supportive impact of lower interest rates against renewed earnings concerns within the technology sector. While the Fed’s rate cut has provided a tailwind for equity valuations, recent corporate results have highlighted growing dispersion beneath the surface, particularly among large-cap tech names.
The Nasdaq underperformed following a sharp sell-off in Oracle shares after the company delivered disappointing earnings and guidance, raising questions about near-term monetization within the broader AI and enterprise software theme. The reaction has injected caution into the tech complex, prompting investors to reassess stretched valuations and earnings expectations after a prolonged rally driven by AI optimism.
Meanwhile, the Dow Jones has shown relative resilience, supported by its heavier weighting toward defensive and value-oriented stocks that tend to benefit from lower borrowing costs and more stable earnings profiles. However, broader equity sentiment remains vulnerable ahead of key U.S. macro releases, with labor market data likely to shape expectations for both economic growth and the Fed’s policy path.
Overall, Wall Street remains caught between supportive monetary policy and rising earnings risk. While lower rates continue to underpin risk assets, equity markets are increasingly sensitive to company-specific disappointments and macro data surprises, suggesting choppier conditions ahead rather than a smooth continuation of the rally.
Technical Analysis
NASDAQ on the chart is showing signs of short-term weakness after failing to hold near the upper resistance zone around the recent highs. Price has rolled over from the upper boundary of the range and is now pulling back into the broader Fibonacci retracement structure, suggesting that bullish momentum is cooling following the latest rally. While the broader trend remains bullish on a higher-timeframe basis, this rejection highlights growing selling pressure near the highs and raises the risk of a deeper corrective move.
Momentum indicators are starting to reflect this loss of upside strength. RSI has rolled over from higher levels and is slipping toward the mid-40s, indicating weakening bullish momentum without yet reaching oversold conditions. This suggests sellers are gaining control, but there is still room for price to extend lower before buyers are forced to step in aggressively. Meanwhile, the MACD has turned bearish, with the signal lines crossing lower and the histogram flipping negative, confirming that downside momentum is building in the near term.
Resistance level: 25,695.00, 27,970.00
Support level: 23,910.00, 22,505.00
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