Tech Stocks Fall as AI Worries and Rising U.S. Yields Weigh; Bitcoin Dips

Stocks Drop as AI Exuberance Worries Linger; Bitcoin Volatility Adds Pressure

NEW YORK, Dec 12, 2025 – U.S. stock markets fell on Friday as concerns over artificial intelligence investments and rising Treasury yields rattled investors, while Bitcoin volatility further reinforced risk-off sentiment. The Dow Jones Industrial Average slipped 245 points to 48,458, the S&P 500 lost 73 points to 6,827, and the Nasdaq Composite fell 399 points to 23,195.

Technology stocks led the decline, down nearly 3% in the S&P 500. Weak forecasts and margin warnings from major companies including Oracle, Broadcom, and Nvidia heightened worries over the sustainability of the AI-driven tech rally. Analysts noted that investor caution around AI and technology spilled over into cryptocurrency markets, pushing Bitcoin below key price levels.

Adding to market pressure, U.S. Treasury yields rose, with the 10-year note climbing to around 4.19%, after Federal Reserve officials indicated that inflation remains elevated and further rate cuts are unlikely in the near term.

In corporate news, Strategy, the company known for holding large amounts of Bitcoin, retained its position in the Nasdaq 100 during the annual rebalancing, despite concerns about crypto-heavy business models. Meanwhile, other major companies such as Biogen and Lululemon Athletica were removed from the index.

Commodities also reflected risk-off sentiment. Copper fell sharply from record highs, and oil closed lower for the week amid supply concerns and geopolitical developments. The U.S. dollar gained modestly against major currencies, while the British pound slipped slightly after weak U.K. economic data.

Market observers say that the combined pressures from technology and crypto sectors, along with rising Treasury yields, are likely to keep investors cautious heading into the end-of-year trading period.