Risk Off Dow Sheds 334 Points While Crude Gushes 4.16%

U.S. stocks slipped into the close Wednesday, with the Dow Jones Industrial Average finishing at 46,590.4, down 334.33 points (-0.71%), the S&P 500 at 6,699.44 (-35.91, -0.53%), the Nasdaq Composite at 22,740.4 (-213.27, -0.93%), and the Russell 2000 at 243.40 (-3.59, -1.45%). Energy names drew support as crude oil (Dec ’25) spiked late to $59.62, up $2.38 ( +4.16% ) as of 3:50 p.m. ET, even as equities broadly lost ground.

Gold futures were little changed in late afternoon trading, with December gold at 4,109.60, up 0.01% as of 3:21 p.m. ET, after a two-day slide that followed record highs earlier this week. Reuters reported that traders pointed to profit-taking ahead of Friday’s CPI release, “Given the aggressive move to the upside over the course of the last several weeks, it's not completely surprising to us to see a bit of profit taking ahead of the CPI report on Friday,” said David Meger, director of metals trading at High Ridge Futures. “We maintain a bullish outlook for gold and silver into 2026…,” added Ole Hansen, head of commodity strategy at Saxo Bank.

Corporate earnings news was led by the AI-infrastructure firms. Vertiv posted a blockbuster quarter, with revenue up 29% to $2.68 billion, adjusted EPS of $1.24 (about a 25% beat), and organic orders up 60%, pushing backlog to ~$9.5 billion. Margins expanded to 22.3% and free cash flow rose 38% to $462 million as the company raised full-year guidance—evidence that data-center power and thermal demand tied to AI remains robust. GE Vernova likewise reported 55% order growth to $14.6 billion and 12% revenue growth to $10 billion, with adjusted EBITDA of $811 million and a planned $5.3 billion Prolec GE acquisition to deepen transformer capacity—another sign that the grid build-out is accelerating alongside AI-driven electrification.

In media, investors continue to react to the press release from Warner Bros. Discovery. The WBD board has begun a strategic review t hat could culminate in a sale of the entire company, a continuation of its planned separation into Warner Bros. and Discovery Global, or other transactions. “We continue to make important strides to position our business to succeed in today's evolving media landscape…” said David Zaslav, President and CEO. Board chair Samuel A. Di Piazza, Jr. added, “Our decision to initiate this review underscores the Board's commitment to considering all opportunities to determine the best value for our shareholders.”

CFRA’s Kenneth Leon reiterated a Hold on WBD, warning that the company’s ~$35 billion debt load could cap potential bids and leaving his $21 price target unchanged. “Going forward, the board of directors will release a definitive deal. There are a number of potential acquirers cited by media sources from the movies & entertainment industry and broader social media/technology industries. We have noted that $35B in total debt outstanding will be a heavy burden for any acquirer.”

Looking ahead, Wedbush Securities expects robust results from Microsoft next week, reiterating OUTPERFORM with a $625 target. The firm sees ~37% Azure growth, estimates Copilot could contribute ~$25 billion to FY26 revenue, and notes ~$30 billion in quarterly capex (about $120 billion annualized) as Redmond races to add AI-ready capacity.