December 12, 2025 US Equities Pre-Market Conditions Analysis

December 12, 2025 pre-market conditions for US equities reflect a mix of company-specific catalysts, regulatory news, and sectoral sentiment shifts.

Oracle (ORCL) dropped nearly 11% due to weaker-than-expected revenue and operating income [0]. Broadcom (AVGO), which reported an earnings beat, raised guidance, and increased its dividend on December 11, saw moderate post-market pressure [0].

• Tilray (TLRY) surged 28% on news that the Trump administration is exploring cuts to federal marijuana restrictions [1].
• Lululemon (LULU) gained 9.4% following an earnings beat and the announcement of CEO departure [1].
• RH rose 3% despite mixed results and soft guidance, while Citigroup © climbed 1% on a JPMorgan upgrade [0].
• Costco (COST) declined 0.2% after beating earnings and revenue but underperforming YTD (-3%) [0].
• Broadcom (AVGO) fell 6% pre-market, even after strong earnings, amid reignited concerns about an AI bubble [2].
• Fermi plummeted 33% after losing $150M in funding for its AI data center grid project [0].

• Dow Jones Industrial Average futures edged up 0.17% [2].
• S&P 500 futures slipped 0.20%, while Nasdaq futures dropped 0.56%—dragged by tech and AI sector fears [2].

• The Trump administration’s potential marijuana regulation changes were a key driver for cannabis stocks [1].
• Earnings: No noteworthy reports are scheduled for December 12 [3]; major releases (Lululemon, Broadcom, Costco) occurred on December 11.
• Economic Data: Fed speakers (Anna Paulson, Beth Hammack, Austan Goolsbee) will address markets, with key data (jobs, CPI) delayed to the following week [4].

1. Regulatory Sensitivity in Cannabis:
   Tilray’s sharp pre-market surge underscores the cannabis sector’s vulnerability to federal policy shifts, as regulatory easing could expand market access [1].
2. AI Sector Sentiment Shift:
   Broadcom’s pre-market decline despite strong earnings highlights growing investor wariness about an AI bubble, which is weighing on Nasdaq futures and tech stocks more broadly [2].
3. Funding Risks in AI Infrastructure:
   Fermi’s 33% drop illustrates the high stakes of funding for AI-related infrastructure projects, where lost capital can lead to severe valuation corrections [0].
4. Mixed Market Sentiment:
   Futures movements (Dow up, S&P/Nasdaq down) reflect divergent sectoral trends—defensive strength supporting the Dow, while tech/AI concerns press on growth indices [2].

• Risks:
  • AI bubble fears could continue to drag down tech stocks and Nasdaq futures [2].
  • Funding volatility remains a significant risk for AI infrastructure firms like Fermi [0].
  • Fed speakers may introduce market volatility if they signal unexpected policy shifts [4].
• Opportunities:
  • Potential federal marijuana regulatory easing could create near-term opportunities in the cannabis sector [1].
  • Companies with strong fundamentals (like Lululemon, which beat earnings) may attract investor interest [1].

This analysis consolidates pre-market conditions for December 12, 2025 US equities. Post-market activity saw Oracle’s 11% drop, while pre-market movers included Tilray (+28% on regulation news), Lululemon (+9.4% on earnings), Broadcom (-6% on AI fears), and Fermi (-33% on lost funding). Futures were mixed (Dow +0.17%, S&P -0.20%, Nasdaq -0.56%). No major earnings are scheduled today, but Fed speakers will address markets, with key economic data delayed. The report provides objective context for market participants to assess pre-market trends and catalysts.