latest news in economy
Nikkei 225 Breaches 49,700 Level as Tech Selloff and Rate Hike Fears Grip Tokyo
Tokyo, Tuesday, 16 December 2025.
On Tuesday, December 16, 2025, Japan’s Nikkei 225 Index fell 1.35% to close at 49,489, breaching the critical 49,700 threshold amid a global tech selloff. The decline was heavily influenced by a sharp correction in AI-related stocks, with Advantest Corp plunging 6.42% and Kioxia Holdings dropping 3.1%, mirroring similar trends on Wall Street. Beyond the tech sector, market sentiment is being tested by the widely anticipated Bank of Japan interest rate hike expected later this week. This dual pressure of external market correlation and domestic monetary tightening highlights a pivotal moment for asset managers navigating Asian market volatility.
Evercore Strategist Predicts Continued Market Gains Due to Missing Recession Signals
New York, Tuesday, 16 December 2025.
Evercore ISI projects an 8.5% S&P 500 rise through 2026, arguing that despite high valuations, the systemic forces that typically trigger bear markets are currently absent from the financial landscape.
Capital Rotates From Big Tech to Small Caps in Year-End Shift
New York, Monday, 15 December 2025.
As 2025 concludes, capital is fleeing Big Tech for small caps, driving the Russell 2000’s 2.3% December surge. Sparked by Oracle’s slump, investors are questioning AI profitability and favoring broader market exposure.
China's Economic Slowdown Deepens as November Retail Sales Miss Forecasts
Beijing, Monday, 15 December 2025.
November data reveals a sharp deceleration, with retail sales growing just 1.3 percent—well below forecasts—while real estate investment plunged nearly 16 percent, highlighting critical weakness in domestic demand.
Increasing Costs and Profit Uncertainty Drive Sharp Selloff in AI Sector
New York, Sunday, 14 December 2025.
Investor sentiment toward artificial intelligence is shifting from euphoria to caution, evidenced by Oracle’s sharpest single-day decline since 2001 following a massive hike in projected spending. The market is increasingly alarmed by the disparity between soaring capital expenditures and current returns; notably, economists highlight that OpenAI has committed to roughly $1.4 trillion in future spending despite generating only $13 billion in revenue. As industry leaders like Nvidia and Oracle slide, analysts warn that the sector must now prove its monetization potential. While some experts foresee a gradual deflation rather than a sudden bubble burst, the pressure is mounting on tech giants to justify the trillions pouring into infrastructure before the broader S&P 500 suffers lasting damage.
Capital Flows into Options Strategies as AI and Regulatory Shifts Redefine Business Growth
New York, Sunday, 14 December 2025.
Financial markets are witnessing a decisive pivot as investors flock to options-based income ETFs, a sector now commanding hundreds of billions in assets by offering yield and downside protection against market concentration risks. Concurrently, the entrepreneurial landscape is being reshaped by affordable artificial intelligence; platforms are automating tedious compliance and accounting tasks, effectively democratizing operational efficiency for small businesses. Beyond these structural changes, the cannabis industry anticipates a watershed moment with federal rescheduling likely to unlock institutional capital and banking services. From the sophisticated hedging of new funds like the NEOS Long/Short ETF to the practical application of AI agents in legal departments, these developments highlight a dual evolution in how capital is preserved and how businesses are built in late 2025.
