Tech Stumbles, Materials Shine: A Week of Rotation on Wall Street
Weekly Market Breakdown (Week Ended Dec. 12, 2025)
The US stock market ended the week slightly lower as investors rotated out of technology stocks and moved into basic materials and financials, despite a recent interest rate cut by the Federal Reserve.
Overall Market Snapshot
• Morningstar US Market Index: ⬇️ -0.55%
• S&P 500: ⬇️ -0.63%
• Nasdaq: ⬇️ -1.62%
Despite the pullback, 60% of tracked stocks still closed higher, showing that weakness was sector-specific, not market-wide.
Sector Performance: Winners & Losers
✅ Best-Performing Sectors
• Basic Materials: ⬆️ +3.06% ️
• Financial Services: ⬆️ +2.38%
Investors shifted toward inflation-hedged and cyclical sectors as tech valuations cooled.
❌ Worst-Performing Sectors
• Technology: ⬇️ -2.18%
• Communication Services: ⬇️ -1.63%
AI and cloud stocks like Oracle and Broadcom sold off after earnings, triggering broader tech weakness.
Market Style & Size Breakdown
• Large-cap stocks: ⬇️ -0.92%
• Mid-cap stocks: ⬆️ +0.43%
• Small-cap stocks: ⬆️ +0.96%
• Growth stocks: ⬇️ -1.12%
• Blend stocks: ⬆️ +0.11%
• Value stocks: ⬆️ +1.19%
Key insight: This was a classic rotation week — money moved from growth to value, and from mega-cap tech to smaller names.
Interest Rates & Commodities
• 10-year Treasury yield: ⬆️ 4.19%
• 2-year Treasury yield: ⬇️ 3.52%
• Crude Oil: ⬇️ -4.44% to $57.47 ️
• Gold: ⬆️ +2.46% to $4,300.70
Falling oil and rising gold suggest investor caution and risk hedging.
Top Gaining Stocks
• Tilray Brands: ⬆️ +65%
• EchoStar: ⬆️ +31%
• Cogent Communications: ⬆️ +18.6%
• AmeriCold Logistics: ⬆️ +18.4% ❄️
• Uniti Group: ⬆️ +16.6%
⚠️ Note: Some top gainers are still deeply down over 12 months, reminding investors to separate short-term rallies from long-term fundamentals.
Top Losing Stocks
• Bloom Energy: ⬇️ -20.3% ⚡
• Vertiv: ⬇️ -14.7%
• Marvell Technology: ⬇️ -14.6%
• Compass Minerals: ⬇️ -14.5%
• Alnylam Pharmaceuticals: ⬇️ -13.2%
Many losers were still trading above fair value, making them vulnerable during market pullbacks.
What Drove the Market This Week?
• The Fed cut interest rates by 0.25%, as expected
• However, internal disagreement among policymakers created uncertainty
• Markets rallied briefly, then reversed as investors took profits in tech & AI stocks
️ “The rate cut pushed equities higher initially, but momentum faded as investors rotated out of technology,” — Morningstar Strategist.
Key Economic Events to Watch This Week
• Retail Sales
• Consumer Price Index (CPI)
• Employment & Industrial Data
• Nike Earnings
These reports could shape expectations on inflation, consumer strength, and future rate cuts.
Big Takeaway for Investors
✔️ This was not a market crash, but a healthy rotation
✔️ Tech cooled, while value, materials, and financials gained
✔️ Long-term investors should focus on valuation, not headlines
Weekly Market Breakdown (Week Ended Dec. 12, 2025)
The US stock market ended the week slightly lower as investors rotated out of technology stocks and moved into basic materials and financials, despite a recent interest rate cut by the Federal Reserve.
Overall Market Snapshot
• Morningstar US Market Index: ⬇️ -0.55%
• S&P 500: ⬇️ -0.63%
• Nasdaq: ⬇️ -1.62%
Despite the pullback, 60% of tracked stocks still closed higher, showing that weakness was sector-specific, not market-wide.
Sector Performance: Winners & Losers
✅ Best-Performing Sectors
• Basic Materials: ⬆️ +3.06% ️
• Financial Services: ⬆️ +2.38%
Investors shifted toward inflation-hedged and cyclical sectors as tech valuations cooled.
❌ Worst-Performing Sectors
• Technology: ⬇️ -2.18%
• Communication Services: ⬇️ -1.63%
AI and cloud stocks like Oracle and Broadcom sold off after earnings, triggering broader tech weakness.
Market Style & Size Breakdown
• Large-cap stocks: ⬇️ -0.92%
• Mid-cap stocks: ⬆️ +0.43%
• Small-cap stocks: ⬆️ +0.96%
• Growth stocks: ⬇️ -1.12%
• Blend stocks: ⬆️ +0.11%
• Value stocks: ⬆️ +1.19%
Key insight: This was a classic rotation week — money moved from growth to value, and from mega-cap tech to smaller names.
Interest Rates & Commodities
• 10-year Treasury yield: ⬆️ 4.19%
• 2-year Treasury yield: ⬇️ 3.52%
• Crude Oil: ⬇️ -4.44% to $57.47 ️
• Gold: ⬆️ +2.46% to $4,300.70
Falling oil and rising gold suggest investor caution and risk hedging.
Top Gaining Stocks
• Tilray Brands: ⬆️ +65%
• EchoStar: ⬆️ +31%
• Cogent Communications: ⬆️ +18.6%
• AmeriCold Logistics: ⬆️ +18.4% ❄️
• Uniti Group: ⬆️ +16.6%
⚠️ Note: Some top gainers are still deeply down over 12 months, reminding investors to separate short-term rallies from long-term fundamentals.
Top Losing Stocks
• Bloom Energy: ⬇️ -20.3% ⚡
• Vertiv: ⬇️ -14.7%
• Marvell Technology: ⬇️ -14.6%
• Compass Minerals: ⬇️ -14.5%
• Alnylam Pharmaceuticals: ⬇️ -13.2%
Many losers were still trading above fair value, making them vulnerable during market pullbacks.
What Drove the Market This Week?
• The Fed cut interest rates by 0.25%, as expected
• However, internal disagreement among policymakers created uncertainty
• Markets rallied briefly, then reversed as investors took profits in tech & AI stocks
️ “The rate cut pushed equities higher initially, but momentum faded as investors rotated out of technology,” — Morningstar Strategist.
Key Economic Events to Watch This Week
• Retail Sales
• Consumer Price Index (CPI)
• Employment & Industrial Data
• Nike Earnings
These reports could shape expectations on inflation, consumer strength, and future rate cuts.
Big Takeaway for Investors
✔️ This was not a market crash, but a healthy rotation
✔️ Tech cooled, while value, materials, and financials gained
✔️ Long-term investors should focus on valuation, not headlines