| Bloomberg Evening Briefing Americas |
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| Stocks took a turn for the worse Wednesday as doubts in tech darlings and artificial intelligence outlays manifested in declines across the board. The rout hits amid growing suspicion that the mother of all bubbles may be ready to pop. Magnificent Seven pole sitter Nvidia led declines among the megacaps as the S&P 500 fell 1.2% and the Nasdaq slid 1.8%. Even the slightest hint of trouble around data centers is enough to spook investors banking on the AI boom, and there was more than a hint today. AI canary Oracle coughed up some coal dust in the form of financing issues around a data center in Michigan. It turns out that Blue Owl Capital, a longtime partner in the company's AI infrastructure build-out, is not contributing equity. Oracle plunged about 5.4%. As the year draws to a close, a clearer narrative has emerged: the mega-cap technology stocks that have powered this bull run may be losing their ability to carry the market on their own, according to Fawad Razaqzada at Forex.com. Here's today's market wrap. —Jordan Parker Erb | |
What You Need to Know Today | |
| Jack Smith, the former war crimes prosecutor who obtained two federal grand jury indictments of Donald Trump, told members of Congress Wednesday that his team of investigators "developed proof beyond a reasonable doubt" that the twice-impeached US president had "criminally conspired to overturn the results of the 2020 election," the Associated Press reported. Smith also said they developed "powerful evidence" Trump illegally hoarded files containing classified documents at his Florida home and tried to block the government from getting them back, the AP said. Both indictments were dropped after Trump won a second term. A third indictment in Georgia state court over Trump's alleged efforts to block Joe Biden from taking office in 2021 was recently dropped as well. But a fourth indictment led to Trump being convicted on dozens of counts of falsifying business records in a New York state prosecution tied to hush money payments made to a porn actress. Smith had sought a public hearing of his testimony before Congress, but Republicans refused the offer, insisting he appear in private.  Jack Smith during a break in a closed-door deposition before the House Judiciary Committee in Washington on Wednesday. Photographer: Kent Nishimura/Bloomberg | |
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| Tricolor founder Daniel Chu was charged with conspiring to defraud lenders and investors in a sweeping indictment tied to the used car dealer and financing company that collapsed three months ago. The grand jury accused Chu and other executives who had worked at Tricolor of operating the company through "systemic fraud." Tricolor filed for bankruptcy in September after shutting down more than 60 locations across the US Southwest. The newly unsealed charges provide the most detailed account yet of alleged misconduct that lenders, investigators and bankruptcy officials had been trying to untangle since Tricolor's collapse. Lenders including JPMorgan, Barclays and Fifth Third have been preparing for significant losses tied to the company's facilities. | |
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| German troops could participate in a coalition to secure a demilitarized zone in Ukraine after a possible peace agreement with Russia, according to Chancellor Friedrich Merz. Soldiers would be authorized to "retaliate against corresponding Russian incursions and attacks," Merz told public broadcaster ZDF in Berlin Tuesday evening, although he cautioned that "we are not there yet." Merz's remarks were the clearest signal so far that the German military is ready to play a central role in giving security guarantees to Ukraine after a possible peace deal. Meanwhile, Turkey is seeking to return S-400 air defense systems it bought from Russia nearly a decade ago, a move that would end a controversial deal that roiled Turkey's relationship with the US and other NATO members. Turkish President Recep Tayyip Erdogan, long friendly with Vladimir Putin, raised the issue with the Kremlin leader during a meeting in Turkmenistan last week. Erdogan's move follows intensifying pressure from Washington to give up the Russian tech—especially if he wants the F-35, the premier-yet-defect-plagued US fighter jet made by Lockheed Martin.  An F-35B stealth fighter lands at a Japanese military base in Shintomi, Japan, in August. Photographer: Kyodo News | |
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| Macro hedge funds wagering on emerging markets have outperformed this year, and managers see tailwinds continuing in 2026. Kirkoswald Asset Management and Brevan Howard's emerging market-focused macro fund saw strong gains on their emerging market bets, with returns of 19.6% and 13.5% through November, respectively. Next year is shaping up to be another eventful one for emerging-market assets after broad gains in 2025. Debt restructuring and progress on International Monetary Fund deals have boosted assets in certain countries, while commodity rallies and a US dollar battered by Trump's trade policies have also helped stoke demand. | |
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| BlackRock will match government contributions to "Trump accounts" for its employees, making it one of the first major US companies to lay out plans for supporting his program. Under the White House initiative, which begins in July, any parent can open an account for their child and contribute up to $5,000 a year. Employers can contribute $2,500 annually without affecting a worker's taxable income. BlackRock on Wednesday said it will offer a match to the government's contribution for all eligible US employees. Bridgewater Associates founder Ray Dalio also announced on Wednesday that his foundation will donate $250 each to roughly 300,000 of the accounts for children in Connecticut. | |
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What You'll Need to Know Tomorrow | |
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 On this episode of Trumponomics, we discuss how rising insurance costs—both health and automotive—are becoming major drivers of the affordability crisis spreading across America, and what that means for next year's midterm elections. | |
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