GoAI Market Wrap - 12th Dec

Stock Market  

On Thursday Eastern Time, the three major U.S. indices closed mixed. The S&P 500 and Dow Jones set new closing highs together, while the Nasdaq – with heavier tech weighting – lagged due to doubts about AI investment prospects triggered by Oracle’s earnings.  

 

Oracle shares plunged 10.8% after quarterly guidance missed analyst expectations and the company warned annual capex would be $15 billion higher than previously planned. Markets worried the aggressive AI cloud bet is burning cash too fast, reigniting AI bubble fears.  

 

Interactive Brokers chief strategist Steve Sosnick said: “Concerns about Oracle and the broader AI trade are justified because companies have committed trillions in AI spending, but it’s clearly hard to judge how this will play out — Oracle is in some ways the canary in the coal mine.” He added: “The market is right to take some money off the table in this sector.”  

 

However, Sosnick remains very optimistic on the outlook, saying the so-called “Santa Claus rally” looks almost certain and could push the S&P 500 past 7,000.  

 

Manulife John Hancock Investments co-chief investment strategist Matthew Miskin said: “The key word for the current market is rotation – we’re seeing small caps, the Dow, and cyclicals improving as the market bets on a reacceleration in global growth.”  

 

Investors are still digesting the Fed’s policy meeting outcome from Wednesday. The Fed cut the benchmark rate by 25 bps as expected, and Chair Powell hinted at pausing further cuts. However, since the dot plot still leaves room for two cuts, investors interpreted it as “vigilant on inflation but acknowledging labor weakness,” leaving overall sentiment relatively comfortable.  

 

Siebert Financial CIO Mark Malek commented that Thursday’s market continued to benefit from the Fed meeting outcome and Powell’s remarks. “Clearly, the market had been bracing for a more hawkish cut. Most people expected Powell to start on a more negative note.” He added that Powell stressing employment as “something to watch closely” was particularly noteworthy.  

 

Further underscoring this point, the U.S. Labor Department reported Thursday that initial jobless claims for the week ending December 6 rose to 236,000, above the expected 220,000.  

Global Hotspots  

OpenAI releases more advanced GPT-5.2 model  

 

Weeks after Google released the well-received Gemini 3, OpenAI announced a new AI model aimed at improving ChatGPT performance in programming, science, and various work tasks. The company said Thursday the new model GPT-5.2 is faster and better at information lookup, writing, and translation.

 

The model comes in three tiers designed to better simulate human reasoning for handling more complex and time-consuming tasks in areas like math and programming.  

 

Fed reappoints 11 regional bank presidents  

 

The Fed announced Thursday its Board of Governors unanimously voted to reappoint 11 regional Fed presidents for five-year terms starting March 1 next year. The Fed said the reappointments followed thorough evaluations by regional Fed boards of directors and received “unanimous consent” from the Board of Governors.

 

By law, all regional Fed presidents and first vice presidents serve five-year terms. Current terms expire February 28, 2026. This resolves a key question around future FOMC composition.  

 

U.S. House shelves motion to impeach President Trump  

 

On December 11 local time, the U.S. House of Representatives voted 237-140 to table a motion by Texas Rep. Al Green to impeach President Donald Trump.

 

All Republicans voted for the tabling motion. While many House Democrats privately believe Trump should not remain president or should be impeached, most were unwilling to advance the resolution.  

Corporate News  

Nvidia CFO: OpenAI deal not yet included in revenue guidance  

 

Nvidia CFO Colette Kress said Tuesday that the “$100 billion investment in OpenAI” announced at the end of September remains at the letter-of-intent stage. The agreement involves deploying “at least 10 GW” of Nvidia systems for OpenAI — equivalent to $400–500 billion in revenue for Nvidia.

 

Naturally, this revenue is not yet reflected in the company’s guidance.  

 

Amazon launches new AI chip, next-gen chip to integrate with Nvidia ecosystem  

 

Cloud computing leader Amazon AWS officially launched its first 3nm AI chip, Trainium3. Compared to the previous generation, Trainium3 offers up to 4.4× higher compute performance, 4× better energy efficiency, and nearly 4× higher memory bandwidth, targeting cost-performance leadership in AI compute.  

 

Amazon also announced that Trainium4 is in development, with the biggest highlight being support for Nvidia’s NVLink Fusion high-speed interconnect, allowing Trainium4 to work seamlessly within the Nvidia ecosystem.  

 

AWS launches new custom large-model training service  

 

Amazon AWS launched its cutting-edge large-model custom training service, Nova Forge, on Tuesday.

 

While most cloud services currently support fine-tuning of fully trained LLMs, Nova Forge allows enterprises to access pre-training, mid-training, or post-training stages and inject their proprietary data.  

 

Dell family donates to set up investment accounts for 25 million American children  

 

Dell Technologies founder Michael Dell and his wife Susan announced a $6.25 billion donation to help most American children open investment accounts.

 

The $6.25 billion will be handed to the U.S. Treasury to create accounts for 25 million children “aged 10 and under who do not qualify for government funds,” with each new account seeded with $250.  

Forex & Commodities  

WTI crude futures closed down 1.07% at $58.25 per barrel; Brent crude futures down 0.88% at $61.94 per barrel.  

 

Spot silver up 1.91% at $61.798 per ounce, new all-time high. COMEX gold futures up 0.45% at $4,236.6 per ounce; COMEX silver futures up 4.72% at $61.16 per ounce.  

 

On December 11, the U.S. Dollar Index fell 0.45% to 98.789.  

Key Events  

Goldman Sachs strategists see further dollar weakness ahead  

 

Goldman Sachs chief FX & EM strategist Kamakshya Trivedi said: “The dollar no longer has overvaluation support; its premium has shrunk significantly this year… We see room for further depreciation, reflecting expectations the Fed will continue easing in December and next year.”

 

The likely nomination of NEC Director Kevin Hassett as next Fed Chair is one reason markets expect more aggressive rate cuts.  

Cryptocurrency  

Bitcoin 24h +2.20% to $92,495.85.  

 

Ethereum +6.16% to $3,316.96.  

 

XRP +1.14%, BNB −0.01%, Solana +3.59%.  

 

Dogecoin +3.86%, Cardano +8.05%.

Key Events  

Any chance left for Bitcoin this year? Analysts: Strong rally unlikely, bottom-forming more realistic  

 

Bitcoin plunged on the first day of December, deepening risk-off sentiment. As year-end approaches, analysts are taking a more cautious stance on the asset.  

 

As the crypto bellwether, Bitcoin is already down 7% in December and has corrected ~31% from its all-time high on October 6. This reflects investor concerns dominating the market over the past month.  

 

Industry insiders say the crypto market remains fragile — negative news weighs heavily, while positive developments fail to lift the gloomy mood or price action.  

 

Derek Lim, head of research at crypto trading firm Caladan, noted: “Bitcoin is likely to stay range-bound with increased volatility, trading between $83,000 and $95,000.”