The sell-off in artificial-intelligence stocks continued on Friday in the U.S., as investors weighed the pace of AI-driven earnings against concerns about margins and deal quality. Broadcom shares fell more than 11% after earnings and guidance that undershot expectations on margins. Other AI-focused names, including Nvidia, Advanced Micro Devices, and Oracle, also traded lower in sympathy, helping to pull the major indices lower. Despite the near-term weakness, the AI thesis remains intact for many investors, with potential for sustained earnings growth if demand from hyperscalers remains intact.
From a market-structure perspective, the week unfolded in a familiar pattern: the Dow Jones climbed on strength in financial shares, while technology names lagged and weighed on the S&P 500 and the Nasdaq Composite. The week leaves investors searching for signs that the AI cycle can remain profitable amid higher input costs and evolving deployment horizons.
“Frankly we aren’t sure what else one could desire as the company’s AI story continues to overdeliver and do so at an accelerating pace,” a noted market strategist reflected after Broadcom’s results, underscoring a cautiously optimistic take on long-term demand despite near-term margin headwinds.
What you need to know today
U.S. stocks were dragged down by AI-related names. Major indices retreated after a stretch of gains, while Asia-Pacific markets traded lower as investors reassessed the AI narrative and its impact on earnings visibility.
China’s economic slowdown deepens. Although retail sales and industrial production rose year over year in November, the gain missed forecasts and cooled from the previous month. Fixed-asset investment for January through November also contracted versus a year earlier, signaling a softer domestic growth trajectory.
The end of the “Berkshire way”? Berkshire Hathaway’s leadership transition appears to be signaling a shift away from the firm’s famously decentralized approach, with potential implications for capital allocation and governance for shareholders.
Hong Kong court finds Jimmy Lai guilty. The 78-year-old pro-democracy activist and media figure was convicted of sedition and collusion with foreign forces, a result that analysts say could influence foreign investor sentiment toward the region.
China’s food security strategy. The ongoing tensions with Washington over soybean purchases highlight Beijing’s push to bolster domestic agriculture and supply chains, with strategists framing this as a multi-year shift in sector fundamentals.
And finally…
Copper prices have surged this year on supply disruptions and tariff concerns, fueling expectations of continued strength into 2026. The metal’s rally underpins broader inflation-hedge dynamics tied to energy transition and data-center expansion.
Analysts expect copper demand to remain robust as electrification, grid upgrades, and large-scale data-center projects accelerate, supporting prices even as near-term volatility persists.
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