Trending Sectors | AI and Chips Shine Amid Mixed EV and Commodity Trends: Opportunities for Investors

【Major U.S. Stock Indices】

The major U.S. stock indices all closed higher, with the S&P 500 up 0.71% at 5792.04 points, the Dow Jones up 1.03% at 42512.00 points, and the Nasdaq up 0.60% at 18291.62 points. The market rose on strong employment data, and despite inflation pressures, investors remain cautiously optimistic about the economic outlook.

【Performance of Leading Tech】

The major tech stocks mostly fell, with Microsoft down 0.39%, Apple down 0.22%, Meta down 1.13%, and Tesla down 0.95%. Microsoft benefitted from Morgan Stanley maintaining a buy rating with a target price of $506, though overall market sentiment was cautious. Apple was affected by unchanged iPhone 16 shipment data and uncertainty from retail workers filing for union elections. Amazon rose 0.80% due to progress in its Apple TV+ collaboration. Google slightly increased by 0.14% after forming a cloud partnership with Sequoia Capital. Tesla's market confidence needs to build ahead of the Robotaxi release.

【AI and Chip Sector Performance】

The AI sector showed mixed performance. NVIDIA rose 1.63%, reaching a market cap of $3.31 trillion, leading due to expected demand for inference computing chips. AMD released new AI chips, facing fierce competition with NVIDIA, but its stock fell 1.73%. Intel launched its first AI PC desktop processor, with shares slightly down 1.02%. Micron Technology saw a 3.92% stock increase due to a new branding strategy. Overall, the AI and chip sector remains optimistic in the long run driven by technological innovation.

【Electric Vehicle Sector Performance】

The EV sector mostly declined, with Tesla dropping 0.95% as the market reacted cautiously to its Robotaxi plans. Among domestic players, Li Auto fell 3.76%, XPeng rose 0.88%, and NIO fell 1.11%. Traditional automakers like Toyota and Ford saw slight gains, reflecting relative market stability. Overall, the new energy sector shows significant short-term volatility, with long-term growth driven by policy support.

【Oil, Gold, and Cryptocurrency Performance】

Oil stocks generally rose, with ExxonMobil up 0.86% and Occidental Petroleum up 1.24%, aided by high oil price expectations. Gold stocks also rose, with Barrick Gold up 2.09%, supported by market risk aversion. Cryptocurrency-related stocks mostly fell, with Coinbase down 1.62%, affected by market regulation and volatility.

【Other Noteworthy Sectors】

Retail stocks were mixed, with Walmart and Costco down, while Target rose 1.06%. Vaccine stocks showed clear divergence, with Pfizer down 2.82% and Novavax up 1.77%. The market remains focused on the future prospects of the pharmaceutical sector, especially in light of new vaccine developments and changing market demand.

【Summary and Advice】

Overall, the U.S. stock market showed some volatility, with different sectors reacting diversely. Investors should focus on changes in macroeconomic indicators and company fundamentals. Despite short-term fluctuations, growth sectors like tech and new energy remain promising for long-term investment. Meanwhile, traditional energy and gold as safe-haven assets hold some value in the current economic environment.