Wall Street closed mixed on Thursday, pulled up by financial and industrial stocks. Investor mood was less upbeat about artificial intelligence (AI), bringing the tech sector down. Two of the three benchmark indexes finished in the green, while one finished in the red.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 1.3%, or 646.26 points, to close at 48,704.01. Twenty-one components of the 30-stock index ended in positive territory, while nine ended in the negative.
The tech-heavy Nasdaq Composite lost 60.30 points, or 0.3%, to close at 23,593.86.
The S&P 500 added 14.32 points, or 0.2%, to close at 6,901.00. Eight of the 11 broad sectors of the benchmark index closed in the green. The Materials Select Sector SPDR (XLB), the Financials Select Sector SPDR (XLF) and the Industrials Select Sector SPDR (XLI) advanced 2.2%, 1.8% and 1.1% respectively, while the Communication Services Select Sector SPDR (XLC) receded 1%.
The fear gauge CBOE Volatility Index (VIX) decreased 5.8% to 14.85. A total of 17.05 billion shares were traded on Thursday, lower than the last 20-session average of 17.39 billion. Advancers outnumbered decliners by a 2.2-to-1 ratio on the NYSE and by a 1.28-to-1 ratio on the Nasdaq.
Tech Sector Falters as Oracle Drags Wall Street Despite Broader Market Lift
Wall Street saw a mixed session on Dec. 11 as a sharp pullback in Oracle Corporation ORCL pressured the technology sector, even while most other sectors found support from a softer Fed outlook. Oracle’s slump weighed heavily on major tech benchmarks, tempering sentiment across the broader growth space. Investors reacted to concerns surrounding the company’s latest guidance and slowing cloud momentum, which overshadowed optimism elsewhere in the market.
Oracle’s sharp decline of 10.8% fueled fresh pessimism around AI demand, dragging major growth stocks lower. Investors reacted to signs of slower cloud and AI-related momentum, dampening sentiment across the broader tech landscape. Oracle’s slump revived concerns that AI investments may be cooling, pressuring the sector and curbing Wall Street’s recent optimism. The price of insuring Oracle’s debt spiked amid investor concerns that its extensive debt-funded strategy could reflect an AI bubble forming, echoing the dotcom collapse of the early 2000s.
Treasury yields eased, and traders grew more confident that rate cuts could arrive sooner in 2026, providing a cushion for economically linked stocks. The divergence highlighted the market’s ongoing rotation, with investors selectively shifting capital from stretched tech names into undervalued cyclical plays. While the broader indexes remained relatively stable, Oracle’s decline underscored how a single heavyweight can sway sentiment across an entire sector. Overall, the session reflected a tug-of-war between tech weakness and improving macro hopes, leaving markets cautiously optimistic despite pressure on one of Wall Street’s most influential industries.
Consequently, shares of Arm Holdings plc ARM and NVIDIA Corporation NVDA fell 3.8% and 1.6%, respectively. While ARM carries a Zacks Rank #3 (Hold), NVDA has a #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Economic Data
For the week ending Dec. 6, initial jobless claims came in at 236,000, an increase of 44,000 from the previous week's revised level. The previous week’s level was revised up by 1,000 from 191,000 to 192,000. The 4-week moving average was 216,750, an increase of 2,000 from the previous week's unrevised average of 214,750.
Continuing claims for the week ending Nov. 29 were 1,838,000, a decrease of 99,000 from the previous week's revised level. The previous week's level was revised down by 2,000 from 1,939,000 to 1,937,000. The 4-week moving average was 1,918,000, a decrease of 27,000 from the previous week's revised average. The previous week's average was revised down by 250 from 1,945,250 to 1,945,000.
Per the Census Bureau, delayed numbers for wholesale inventories for the month of September came in at an increase of 0.5%, after decreasing 0.1% in August.
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NVIDIA Corporation (NVDA): Free Stock Analysis Report Oracle Corporation (ORCL): Free Stock Analysis Report ARM Holdings PLC Sponsored ADR (ARM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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