Core Viewpoint - The US stock market experienced a significant downturn, particularly in the technology sector, driven by concerns over an "AI bubble" and hawkish signals from Federal Reserve officials [2][9]. Market Performance - On December 12, US stock indices collectively fell, with the Dow Jones down 0.51%, the Nasdaq down 1.69%, and the S&P 500 down 1.07% [3]. - Major tech stocks saw substantial declines, with Broadcom dropping over 11%, Oracle and TSMC ADR down over 4%, and Nvidia down over 3% [4]. AI Sector Concerns - Oracle's stock plummeted after reports indicated delays in data center construction for OpenAI due to labor and material shortages, which Oracle later denied [2][8]. - Broadcom's AI market sales outlook failed to meet investor expectations, raising fears about the sustainability of the AI sector [8]. Federal Reserve Influence - Hawkish comments from multiple Federal Reserve officials led to increased bond yields and a sell-off in tech stocks. Kansas City Fed President Esther George noted persistent inflation and a need for restrictive monetary policy [9][10]. - The market is anticipating key employment and inflation data that will influence the Fed's January policy decisions [10]. Future Rate Expectations - Current predictions suggest a 24.4% chance of a 25 basis point rate cut in January, with a 75.6% probability of maintaining current rates. By March, the cumulative probability of a 25 basis point cut rises to 41.9% [10][11].