Global Markets Decline Amid Peace Talk Delays and AI Sector Concerns (December 2025)

On December 15-16, 2025, U.S. and global markets experienced broad declines driven by two interconnected factors: unresolved geopolitical negotiations and growing anxiety about AI sector fundamentals. [1] U.S. equity indices closed lower on December 15, with the tech-heavy NASDAQ Composite suffering the sharpest drop (-1.17%)—a reflection of mounting AI-related concerns. The S&P 500 (-0.64%) and Dow Jones Industrial (-0.37%) also declined, indicating broader market unease. [0] European futures fell 0.7% as investors awaited clarity from Berlin-based Ukraine-U.S. peace talks, where limited progress was reported but core issues (security guarantees, territorial disputes) remained unresolved, fueling regional risk aversion. [2][4][5] Compounding these pressures, Jim Chanos highlighted a potential depreciation “time bomb” for AI infrastructure companies (CoreWeave, Oracle) relying on NVIDIA chips, citing a 28% YoY drop in Hopper chip rental rates as evidence of rapid hardware obsolescence—conflicting with the 6-year depreciation schedules used by these firms. [3]

1. The NASDAQ’s steep decline (-1.17%) underscores the tech sector’s vulnerability to AI-specific concerns, given the index’s heavy weighting in AI-related stocks. [0]
2. European markets exhibit exceptional sensitivity to Ukraine-related geopolitical developments, with even incremental delays in peace talks immediately impacting futures prices. [2]
3. The 28% YoY drop in GPU rental rates reveals a critical mismatch between current depreciation practices and the actual obsolescence cycle of AI hardware, which could reshape valuations in the AI infrastructure space. [3]

• AI Hardware Obsolescence: A shift to shorter depreciation schedules for AI chips could increase operating expenses and reduce profitability for firms like CoreWeave and Oracle, pressuring their valuations. [3]
• Geopolitical Volatility: Prolonged peace talks or a breakdown in negotiations may sustain market turbulence, particularly in European equities. [2][4][5]
• Tech Sector Correction: The NASDAQ’s decline may signal a potential correction in overvalued AI stocks, requiring close monitoring of earnings reports and corporate guidance. [0]

• Resolution of Ukraine-U.S. peace talks could trigger a relief rally in European markets, though this remains contingent on meaningful progress in negotiations.

• U.S. index performance (December 15): NASDAQ Composite (-1.17%), S&P 500 (-0.64%), Dow Jones Industrial (-0.37%) [0]
• European futures decline (December 16): 0.7% due to peace talk delays [2]
• AI sector concern: 28% YoY drop in Hopper chip rental rates; Chanos warns of depreciation risks for CoreWeave, Oracle [3]
• Peace talks status: Ukraine-U.S. negotiations in Berlin showed limited progress but unresolved core issues [4][5]