Wall Street closed on a split note on Thursday as the Dow Jones Industrial Average and S&P 500 seized spotlight with their new record highs while Nasdaq traded in red. The Dow Jones Industrial Average and the S&P 500 climbed to fresh milestones on Thursday, lifted by investors still riding the momentum set off by the Federal Reserve’s latest rate cut. The Dow rose 1.3%, driven by strong gains in banks and industrial stocks, while the S&P 500 also pushed into record territory, ending at 0.21% gain. The rally followed an upbeat session in Europe and a mixed day in Asia, with global markets continuing to respond positively to the Fed’s less hawkish tone on Wednesday (local time). But the Nasdaq’s 0.3% dip highlighed the market’s lingering nerves around AI-linked valuations. The Nasdaq, however, was weighed down by a sharp slump in Oracle shares that reignited long-standing worries about the soaring cost of artificial intelligence bets.“Even as investors were reassured by the Fed’s latest rate cut, familiar concerns about AI are still very much top of mind right now,” Deutsche Bank managing director Jim Reid told AFP.The concerns resurfaced after Oracle revealed late on Wednesday that its quarterly revenue had fallen short of expectations and that it had ramped up spending on data centres to expand AI capacity. The stock sank 10.8% by the close, having earlier fallen even further.Dave Grecsek of Aspiriant Wealth Management said the reaction highlighted the market’s discomfort with the scale of AI-related investments.“There’s still a lot of apprehension about how sustainable some of these capital spending plans are, what the return on those investments are, and especially now that they’re financed with debt,” he said, as cited by AFP.Last month, global markets briefly faltered as investors were cautious by the AI bubble concept, questioning whether the massive sums flowing into artificial intelligence risked inflating a bubble that could eventually burst.The Fed’s rate cut, its third in a row, was anticipated, but an unusually high number of dissenting votes has clouded expectations over where borrowing costs are headed next.“Investors have shrugged off the Fed’s latest reduction in US borrowing costs as it is becoming harder to guess where rates might go next,” said AJ Bell investment director Russ Mould.Fed officials remain split on the outlook for 2026, including whether more cuts will be needed and how many. Still, eToro US analyst Bret Kenwell noted that Fed Chair Jerome Powell pointed out that none of the policymakers foresee rate hikes in 2026 in their baseline scenario.“The lack of an outright hawkish tone from the Fed combined with its third consecutive rate cut could pave the way for a potential year-end rally in equities, provided that next week’s macroeconomic data doesn’t derail the recent bullish momentum,” Kenwell said.The reduction brings interest rates to their lowest level in three years as policymakers attempt to shore up a labour market that has shown signs of strain throughout 2025.The dollar weakened while oil prices slipped following the decision.Among corporate movers, Disney added 2.4% after unveiling a three-year licensing agreement with OpenAI, giving users the ability to create short AI-generated videos featuring popular Disney characters.

Stock market recommendations: According to Bajaj Broking Research, the top stock picks for December 12, 2025 are Eternal, and Divi’s Laboratories. Here’s its view on Nifty and Bank Nifty:Index View: NiftyBenchmark indices traded in a range with corrective bias and is currently placed around 25,900 levels as domestic markets tracked the global risk-off tone, pressured by persistent FII selling, a softer rupee, and ongoing uncertainty around US–India trade talks. In the short term, market direction will hinge on central bank commentary and clarity on trade-related developments. In the near term, market trajectory is likely to be dictated by currency stabilization dynamics, especially whether the rupee can find a durable floor. Moreover, clarity on evolving India–US trade negotiations could influence sector-specific outlooks, particularly in export-linked and tariff-sensitive industries. Nifty has key support placed at 25,700–25,800, which aligns with the bullish gap from November 12, the 50-day EMA, and a key retracement zone of the prior uptrend. Sustaining this band will be crucial for continuing the positive momentum of the last 3 months.We expect the Nifty to consolidate in the range of 25,700–26,200. A clear breakout or breakdown will determine the next directional move.A close below the key support area of 25,700 will signal extension of the corrective decline towards the 100 days EMA placed around 25400 levels. On the higher side, a move above the recent swing high of 26,200 will signal extension of the rally towards 26,500 levels in the coming weeks. Nifty BankBank Nifty traded in a range, digesting its recent strong gains. The index consolidated in a 700-points range oscillating in a positive and negative territory.We expect the index to extend consolidation and form a base in the range of 58500-60100 in the coming sessions. A follow-through strength above recent high 60,100 will open further upside towards 61,000 levels in the coming weeks.The entire up move of the last 2 months is well channelled signaling sustained demand at elevated levels. Key support is placed at 58,300-58,600 levels being the confluence of the last two weeks lows and recent breakout area. Holding above the support area will keep the short-term bias positive.

Stock Recommendations:

EternalBuy in the range of ₹ 285-292

Eternal has been in a corrective phase over the past two to three months and is now consolidating around a major demand zone. This technical setup points to a favorable risk-reward profile, suggesting the potential for a bullish reversal and a rebound from its current oversold levels.The current corrective phase seems to be losing momentum, with price action hinting at a possible rebound toward the ₹323 area in the coming months. This zone aligns with the 50% Fibonacci retracement of the entire drop from ₹368 to ₹280 and also matches the November 2025 high, strengthening its significance as a major resistance level.Divi’s LaboratoriesBuy in the range of 6350-6450

The stock is at the cusp of generating a breakout above a falling channel signaling resumption of up move thus offers fresh entry opportunity.The stock has already taken 6 weeks to retrace just 50% of its preceding 5 weeks rally (5636-6904). A shallow retracement signals a higher base formation and an overall positive structure.We expect the stock to head towards 6850 levels being the trendline resistance joining the highs of July and November 2025.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)

A former crypto entrepreneur who was behind two digital currencies that collapsed and lost an estimated $40bn ($29.9bn) has been sentenced by a New York judge to 15 years in prison for an “epic” fraud.

Do Kwon, a South Korean national, was co-founder of Singapore-based Terraform Labs, which developed the TerraUSD and Luna digital coins.

Kwon had admitted misleading investors about TerraUSD, a so-called stablecoin that was supposed to maintain its value against the US dollar.

He was one of a number of crypto bosses to face charges in the US after digital tokens slumped in 2022, triggering the failure of several companies.

US District Judge Paul A Engelmayer, who handed down the sentence, said the Stanford graduate had repeatedly lied to investors who trusted him with their money.

“This was a fraud on an epic, generational scale,” he said during Thursday’s court hearing in Manhattan.

“In the history of federal prosecutions, there are few frauds that have caused as much harm as you have.”

Kwon – who pleaded guilty in August to conspiracy to defraud and wire fraud – expressed remorse to the judge.

“I have spent almost every waking moment of the last few years thinking of what I could have done different and what I can do now to make things right,” he said.

Prosecutors alleged that when TerraUSD fell below its $1 peg in May 2021, Kwon told investors that a computer algorithm had restored its value.

Instead, Kwon had arranged for a trading firm to secretly buy millions of dollars of the coin to artificially boost its value, according to court documents.