AI Valuation Risk, Data Center Execution Delays, and Short-Term Speculative Positioning Weigh on Equity Markets
The Canadian Vanguard Stock Market Report – Weekend December 12 – 14, 2025 Edition
. The Stock Market Report is updated regularly during the weekend
The Toronto Market
The Toronto Market Index: The S&P/TSX Composite Index declined by 133.34 points, or 0.42%, to close at 31,527.39, ending a three-session streak of gains. Despite trading lower during the session, the index recovered from its intraday lows and closed nearly 200 points above the day’s lowest level, which was recorded before noon.
Today’s Toronto Market’s Statistics
On the TSX, declining issues outnumbered advancing issues by approximately nine to five. Specifically, 1,289 issues declined, while 749 advanced, resulting in an advancer-to-decliner ratio of 1.72 to 1. In addition, 139 issues were unchanged.
There were 237 new 52-week highs and 32 new 52-week lows, compared with 276 new 52-week highs and 20 new 52-week lows recorded on Thursday.
Total trading volume on the TSX reached 501,204,746 shares, representing a 13% increase from the 440,886,858 shares traded on Thursday.
Toronto Market Wrap-Up
Friday turned into a tough, bearish session for Canadian equities, with only a few bright spots by the closing bell.
Healthcare was the clear standout, surging 4.59% on the day to finish as the top-performing sector. Telecommunications Services followed, gaining 0.77%. Retail, Utilities, and Technology finished mid-pack as broader market weakness weighed on sentiment.
Looking at the weekly picture, Healthcare delivered an impressive 24.4% gain, while Basic Materials climbed 3.25%. Despite the weekly strength, Basic Materials (-0.86%) and Industrials (-1.32%) were the weakest performers on Friday. Notably, the Basic Materials sector includes precious metals such as gold and silver—and with copper prices continuing their strong run, copper may soon earn temporary “precious metal” status of its own.
Notable Gainers
- Dollarama Inc. (TSX: DOL): +2.40% (+$4.74)
- Bombardier Inc. (TSX: BBD.B): +3.17% (+$6.90)
- Nutrien Ltd. (TSX: NTR): +2.95% (+$2.48), closing at $86.46 on 1.6M shares
- Canadian Natural Resources Ltd. (TSX: CNQ): +0.90% (+$0.41), closing at $45.44 with 49.3M shares traded
On the Downside
- Celestica Inc. (TSX: CLS): –12.92% (-$62.60), closing at $421.77 on 1.2M shares traded
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The US Markets
U.S. Market Indexes
The major U.S. equity indexes ended Friday’s trading session in negative territory. The Dow Jones Industrial Average declined by 245.96 points, or 0.51%, to close at 48,458.05. The S&P 500 fell 73.59 points, or 1.07%, finishing the session at 6,827.51. The Nasdaq Composite recorded the steepest loss, dropping 398.69 points, or 1.69%, to close at 23,195.17.
The Russell 2000 Index also retreated, giving back a portion of its recent gains. The index declined by 39.15 points, or 1.51%, to end the session at 2,551.46, as several small-cap stocks—particularly in the technology sector—experienced significant losses. Among the major U.S. indexes, the Nasdaq was the worst performer for the day.
Earlier in the session, the Russell 2000 reached a new all-time high of 2,595.98, narrowly missing the 2,600 level before reversing course. Despite today’s pullback, small-cap stocks performed well earlier in the week, with the Russell 2000 emerging as the top-performing major index for two consecutive sessions. The 2,600 level remains a psychological benchmark rather than a technically significant threshold.
Today’s U.S. Market Statistics
New York Stock Exchange (NYSE):
Declining issues outnumbered advancing issues on the NYSE. Specifically, 1,843 issues declined, 918 advanced, and 81 remained unchanged, resulting in a decliner-to-advancer ratio of approximately 2.01 to 1, or roughly two decliners for every advancer.
The exchange recorded 164 new 52-week highs and 21 new 52-week lows, compared with 240 new highs and 14 new lows reported on Thursday.
Total NYSE trading volume reached 5,058,205,123 shares, representing a 2.6% decrease from the 5,182,186,155 shares traded on Thursday.
NASDAQ:
On the NASDAQ, declining stocks also outnumbered advancing stocks, at approximately two decliners for every advancer. There were 3,315 decliners and 1,419 advancers, producing a decliner-to-advancer ratio of 2.33 to 1, with 318 issues unchanged.
The exchange reported 232 new 52-week highs and 141 new 52-week lows, compared with 368 new highs and 144 new lows recorded on Thursday.
Total NASDAQ trading volume amounted to 9,040,445,932 shares, an increase of 3% from Thursday’s volume of 8,782,526,031 shares.
U.S. Market Wrap-Up
Friday’s selloff felt like déjà vu, closely echoing November 20, when markets took a sharp turn lower. On that day, the S&P 500 fell 1.6% and the Nasdaq Composite dropped 2.2%—and Friday’s action wasn’t far off.
Only four major U.S. market sectors finished higher on Friday. Technology, particularly AI-related stocks, took the brunt of the damage, with several names posting 6% declines or worse. The Nasdaq Composite, heavily weighted toward tech, spent much of the week in negative territory and finished down 1.69%, while the S&P 500 declined 1.07% for the week.
Tech and AI Under Pressure
Technology stocks were at the center of Friday’s decline.
- Oracle fell 4.61% on Friday and 12.7% for the week
- Broadcom plunged 11.43% on Friday and lost more than 7% for the week
- The S&P 500 Technology sector dropped 2.3%
While AI and mega-cap tech stocks have fallen out of favor with investors, the broader market has held up relatively well. Retail, precious and base metals, financials, biomeds, and industrials all showed resilience.
Small Caps and Sector Rotation
Small caps struggled, with the Russell 2000 down 1.5% on Friday. The index had been swapping the top weekly performance spot with the Dow Jones Industrial Average earlier in the week and still managed to finish up just over 1% for the week.
Data Center & Semiconductor Weakness
Data centers demand massive computing power, storage, and steady energy supplies—but several companies tied to this theme saw sharp pullbacks Friday:
- SanDisk (SNDK): –14.66%
- Western Digital (WDC): –5.80%
- Seagate Technology (STX): –6.56%
- Taiwan Semiconductor Manufacturing (TSMC): –4.17%
Micron Technology (MU): –6.70%, despite strong fundamentals and a previously near-perfect chart
Major Decliners
Friday also produced a long list of notable losers:
- Celestica Inc. (CLS): –12.79%
- Broadcom Inc. (AVGO): –11.43%
- Ciena Corp. (CIEN): –9.89%
- Rubrik Inc. (RBRK): –6.40% (-$5.57), closing at $81.51 on 4.4M shares
- Bloom Energy (BE): –12.85% (-$14.01), closing at $94.98 on 16.4M shares
- Constellation Energy (CEG): –7.03% (-$26.62), closing at $351.98 on 3.8M shares
- Fabrinet (FN): –10.83% (-$57.20) on 726.6K shares
Many former top performers and speculative names broke key technical levels during the session.
Bright Spots Outside AI
Away from AI and high-growth tech, the market showed signs of stability:
- GE Aerospace: +3.96% (+$11.41), closing at $299.83
- Tesla (TSLA): +2.70% (+$12.07), closing at $458.96
- Carvana (CVNA): –3.65% (-$17.24) on 6.2M shares, giving back part of earlier weekly gains
On the Lighter Side… Imagine your son or daughter just turned 18 this week. You finally acted on a long-held idea and opened a trading account as a birthday present. On Thursday, you bought 10 shares of Fabrinet (FN) and deposited them into the account with a proud “Happy 18th Birthday” message.
By Friday evening, the new investor discovers that 10% of the gift has vanished in a single market session.
You now have a new job: explaining the virtues of long-term investing—and the realities of market volatility.
After a week like this, a little humor goes a long way!!!
Weekly Market Takeaway & Outlook
This week’s action reinforced a familiar theme: markets are rotating, not collapsing. The sharp pullback in AI and mega-cap technology stocks masked the fact that many other areas of the market remain constructive. Strength in retail, metals, financials, biomeds, and industrials suggests investors are selectively reallocating capital rather than exiting equities altogether.
That said, the Nasdaq’s underperformance and the breakdown in several former leaders signal that volatility is likely to remain elevated in the near term. AI-related names, after an extended run, may need time to consolidate before attracting fresh buying interest.
Looking ahead, the market appears increasingly headline- and data-dependent, with traders watching economic releases, interest-rate expectations, and earnings guidance for direction. A period of sideways or choppy trading would not be surprising as leadership continues to shift.
For investors, this environment favors discipline and selectivity—focusing on balance sheets, cash flow, and reasonable valuations—while remembering that sharp pullbacks are a normal part of longer-term market cycles.
Commodities and Bonds
Crude Oil: U.S. crude oil futures tumbled 4.4% last week to $57.44 per barrel, marking Friday’s close as the lowest level in seven months. Crude oil was trading at $57.67 per barrel as of 8:00 p.m. EDT, Sunday, at the time of this post update.
Precious Metals: Gold rose $9.80, or 0.22%, to $4,337.80 per troy ounce, while silver gained $0.35, or 0.56%, to $62.35 per ounce, as of the time of this post update.
Cryptocurrency: Bitcoin (BTC-USD) was trading down $1,605.00, or 1.79%, at $88,537.80, as of the time of this post update.
10-Year Treasury Yield: The 10-year Treasury yield rose six basis points last week to 4.19%, near three-month highs, with most of the increase occurring on Friday. The yield stood at 4.184% as of 8:00 p.m. EDT, Sunday, at the time of this post update.
After-Hours Market Action: Stock futures were little changed Sunday evening as of 8pm.
- Dow futures: +111 points (+0.23%) vs. fair value
- S&P 500 futures: +9 points (+0.13%) at 6,899.50
- Nasdaq 100 futures: +9 points (+0.04%) at 25,478.75
Reminder: Overnight futures often have little correlation to the following day’s regular trading session. All figures reflect market conditions at the time of capture only.
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(c) This article is published by The Canadian Vanguard on December 12, 2025
