Sector Dynamo | Tech and Semiconductors Hit Hard, EVs and Oil Follow Suit, Retail and Healthcare Show Mixed Resilience

**Performance of Major U.S. Stock Indices**

The U.S. stock market performed poorly, with major indices experiencing varying degrees of decline. The S&P 500 fell by 1.36%, closing at 4,478.03 points; the Dow Jones Industrial Average dropped by 1.02%, closing at 35,123.36 points; and the Nasdaq Composite Index plummeted by 2.10%, closing at 13,719.03 points. Overall, market sentiment was pessimistic, largely dragged down by broad-based weakness in tech stocks, with investors maintaining a cautious outlook on future economic prospects.

**Performance of Leading Tech Stocks**

Tech giants generally declined: Microsoft fell by 0.30%, Apple dropped by 1.68%, Nvidia plunged by 6.67%, Amazon declined by 1.56%, Alphabet A decreased by 0.45%, Meta bucked the trend with a rise of 4.82%, and Tesla fell by 6.55%. Despite Microsoft announcing plans for a three-day live broadcast at the 2024 Gamescom event, investor sentiment was dampened by slowing cloud revenue and its inclusion on a competitor list. Apple's CFO, Luca Maestri, indicated that Q4 services revenue would see "double-digit" growth, but overall market performance weighed on its stock price. Amazon reported strong Q2 results, but guidance fell short of expectations, and AWS growth exceeded expectations but failed to offset the negative impact. Nvidia's volatility and insider selling news triggered market panic. Tesla announced the production of its 10 millionth electric drive system at its Shanghai Gigafactory, but market sentiment remained cautious about its future prospects.

**Performance of AI and Semiconductor Stocks**

AI and semiconductor stocks were sluggish. Nvidia led the declines with a 6.67% drop. AMD fell by 4.19%, Arm Holdings plummeted by 15.72%, and Micron Technology declined by 7.57%. The chip manufacturing sector also struggled, with TSMC down 4.60% and Intel falling by 5.50%. In the chip equipment and materials sector, ASML dropped by 5.66%, Applied Materials fell by 7.49%, and Lam Research plunged by 9.87%. In the chip design sector, Broadcom fell by 8.50%, Synopsys declined by 3.16%, and Texas Instruments dropped by 5.14%. The semiconductor industry was significantly impacted by recent weak performance and market uncertainty, leading to substantial declines in related stocks.

**Performance of EV, Weight Loss Drug, Oil, Gold, Cryptocurrency, and Meme Stocks**

Electric vehicle stocks generally weakened. Tesla fell by 6.55%, Chinese EV startups Li Auto dropped by 1.87%, NIO by 8.56%, Xpeng by 5.33%, and Zeekr by 9.42%. Traditional automakers were not spared, with Toyota down by 7.48%, General Motors by 2.14%, and Ford by 1.20%. Weight loss drug stocks had mixed performances. Eli Lilly rose by 3.49%, Novo Nordisk dipped by 0.06%, AstraZeneca gained 2.59%, Amgen increased by 0.92%, GlaxoSmithKline rose by 2.24%, Biogen fell by 1.17%, and Viking Therapeutics dropped by 4.12%. Oil stocks were broadly lower. ExxonMobil fell by 1.38%, Occidental Petroleum dropped by 2.37%, and Chevron declined by 4.89%. Oil prices surged by 5% late in the day following news that Iran's Supreme Leader ordered direct attacks on Israel. Cryptocurrency stocks were broadly lower. Coinbase Global fell by 5.22%, MicroStrategy dropped by 6.36%, Riot Platforms declined by 8.54%, and Marathon Digital fell by 7.78%. Meme stocks saw significant declines, with AMC Theatres down by 3.58% and GameStop dropping by 4.23%. Gold stocks had mixed performances. LBMA Gold Price PM fell by 0.34%, Barrick Gold declined by 1.46%, Newmont increased by 0.98%, and Franco-Nevada fell by 1.47%.

**Performance of Retail, Banking, Vaccine Stocks**

Retail stocks had mixed performances. Walmart rose by 1.68%, Costco fell by 0.62%, Home Depot declined by 2.60%, Target dropped by 2.25%, Dollar General fell by 0.19%, and Dollar Tree declined by 4.40%. Bank stocks were broadly lower. JPMorgan Chase fell by 2.27%, Bank of America declined by 2.01%, Wells Fargo dropped by 4.15%, Morgan Stanley fell by 1.40%, Goldman Sachs declined by 1.75%, and Citigroup fell by 2.47%. Vaccine stocks had mixed performances. Pfizer rose by 0.36%, Moderna plummeted by 21.01%, BioNTech fell by 6.40%, and Novavax declined by 1.87%.

**Summary and Recommendations**

Overall, the U.S. stock market experienced weak performance, with widespread declines in tech and semiconductor stocks being the main drag. Investors should pay attention to future performance in the tech and semiconductor sectors and overall market sentiment changes. Traditional safe-haven assets like oil and gold performed relatively well and could be considered for increased holdings to hedge market risk. In the current market environment, investors are advised to remain cautious, avoid over-concentrating their holdings, and diversify their investments to reduce risk.