Broadcom Falls on AI Market Sales; US Willing To Aid Ukraine's Security | Bloomberg Brief 12/12/2025

The European Union is set to indefinitely freeze Russian assets, a move that removes a significant obstacle to providing financial support to Ukraine. This decision comes amid ongoing discussions about the EU's strategy to utilize these frozen assets to bolster Ukraine's economy, especially as the country faces severe financial challenges due to the ongoing conflict with Russia.

The S&P 500 index experienced fluctuations as investors shifted their focus away from major technology stocks, opting instead for investments in old-economy and small-cap companies. This shift reflects a broader trend in market sentiment as investors reassess their portfolios amid changing economic conditions.

Broadcom's shares have declined significantly despite the company reporting strong earnings, with a revenue forecast of approximately $19.1 billion for the upcoming fiscal first quarter. Concerns regarding profit margins and the financial stability of its partner, OpenAI, have overshadowed this positive performance, leading to a negative market sentiment.

Oil prices are on track for a significant weekly loss of around 4% as traders remain concerned about an oversupplied market and the ongoing conflict in Ukraine, which continues to affect global oil dynamics. Despite some fluctuations, the overall trend indicates a bearish sentiment in the oil market.

US credit card debt is on the rise as the holiday season approaches, but the pace of increase is slower compared to the same period last year, according to the Federal Reserve and major credit trackers. This trend indicates a shift in consumer behavior as Americans continue to use credit cards but may be more cautious in their spending habits.

Russia has initiated legal proceedings against Euroclear, challenging the freezing of its assets, which is part of a broader strategy by the European Union to utilize these funds to support Ukraine with a €90 billion loan. This lawsuit marks a significant escalation in tensions between Russia and the EU amid ongoing geopolitical conflicts.

The U.S. has seized a sanctioned oil tanker off the coast of Venezuela, a move that threatens to exacerbate the country's already fragile economy, which is on the brink of hyperinflation. This seizure is part of a broader strategy by the U.S. to exert pressure on the Venezuelan government amid ongoing political turmoil.

Broadcom's shares fell sharply after the company failed to meet investor expectations regarding its artificial intelligence (AI) prospects, coinciding with a decline in Nasdaq futures following Oracle's disappointing earnings report. This downturn occurred despite a record close for the S&P 500 after a recent Federal Reserve rate cut.