**Markets Edge Higher Ahead of Holidays, but AI Trade Faces Setback**

Stock futures moved higher on Thursday as investors inch closer to the Christmas holiday. But while the broader market tries to hold onto gains, the AI and data center sector is facing new challenges. Over the past six months, stocks have rallied nearly 30% from April’s lows, especially in tech-related sectors. However, momentum is slowing as the year ends.

A major issue hit on Wednesday when reports surfaced that Blue Owl Capital (NYSE: OWL) might back out of funding a $10 billion data center project for OpenAI. This project was tied closely to Oracle Corporation (NYSE: ORCL), which took a big hit on the news. The project—a 1-gigawatt data center in Michigan—was expected to be financed by Blue Owl, but rising debt concerns appear to have stalled the plan for now.

This setback dragged down tech stocks, with the Nasdaq closing 1.81% lower at 22,693. The S&P 500 also fell 1.16%, ending at 6,721. The Dow Jones was more resilient, dropping just 0.47% to finish at 47,885.

**Treasury Yields Hold Steady Before Inflation Data**

Bond markets remained quiet Wednesday as investors waited for fresh inflation numbers. Wall Street expects both the headline Consumer Price Index (CPI) and Core CPI (which excludes food and energy) to come in at 3.1% year-over-year. While inflation has cooled from its peak, it’s still above the Federal Reserve’s 2% target.

The 30-year Treasury bond closed at a yield of 4.83%, and the 10-year note held steady at 4.15%. Traders are watching inflation closely as it will influence future interest rate decisions.

**Energy Prices Jump After Venezuela Oil Blockade**

Oil prices surged for the first time in weeks after former President Trump implemented a new blockade on Venezuelan oil tankers. The move is aimed at stopping shipments to countries like Russia and cracking down on drug trafficking from Venezuela into the U.S.

This sudden policy shift triggered a spike in oil markets. Brent Crude rose 2.55% to $60.42 per barrel, and West Texas Intermediate (WTI) also jumped 2.55% to close at $56.68. Natural gas rebounded strongly too, climbing 5.17% to $4.09 after weeks of declines.

**Gold and Silver Surge as Investors Seek Safety**

Precious metals continued their rally on Wednesday, with both gold and silver seeing strong demand from global central banks and retail investors. Weaker employment data, rising geopolitical tension, and expectations of future interest rate cuts are pushing more people toward safe-haven assets.

Gold closed at $4,344, setting a new high, while silver ended at $65.99, driven by strong industrial use and investor interest. A weaker dollar added more fuel to the rally.

**Crypto Volatility Mirrors Tech Sell-Off**

Cryptocurrencies had a rollercoaster ride on Wednesday. Bitcoin surged early during U.S. trading but then reversed course and declined by midday. The drop mirrored losses in tech stocks, showing how closely tied crypto has become to broader market trends.

At 8 AM EST, Bitcoin was trading at $87,342 and Ethereum was at $2,871. Market analysts pointed to concerns about AI stock volatility and uncertainty over who will be the next Federal Reserve chair as reasons behind the crypto pullback.

**Wall Street Analyst Ratings – December 18, 2025**

Top analyst upgrades:

– **GE Vernova Inc. (NYSE: GEV)** was upgraded to Buy from Hold at Jefferies, with a new target price of $815 (up from $736).
– **Micron Technology Inc. (NASDAQ: MU)** was upgraded to Buy from Neutral by Bank of America, setting a target price of $300.
– **Merck & Co. Inc. (NYSE: MRK)** received an upgrade to Outperform from Market Perform by BMO Capital, raising its target price to $130 from $82.
– **Rivian Automotive Inc. (NASDAQ: RIVN)** was upgraded to Outperform from Neutral at Baird, with its price target increased to $25 from $14.

Top analyst downgrades:

– **Argenyx SE (NASDAQ: ARGX)** was downgraded to Neutral from Outperform by Baird, with its target price cut to $858 from $924.
– **Energy Transfer LP (NYSE: ET)** was downgraded to Equal Weight from Overweight at Morgan Stanley, with a target price of $19.
– **Lennar Corp. (NYSE: LEN)** was downgraded to Underperform from Neutral by Bank of America; its target price dropped to $95 from $125.
– **Realty Income Inc. (NYSE: O)** was cut to Underweight from Neutral at JPMorgan, which kept its target price at $61.

Investors should use analyst ratings as one of many tools in making investment decisions and not rely solely on them for buying or selling stocks.