Trending Sectors | AI Chips Shine Amid Tech Sell-Off; Bank Stocks Resilient, Gold Glimmers, EVs Mixed

【Major U.S. Stock Indices】

On Wednesday, the U.S. stock market performed poorly, with all three major indices showing significant declines. The S&P 500 fell 2.24% to 5,275.70 points; the Dow Jones Industrial Average declined 1.73% to 39,669.39 points; and the Nasdaq saw the largest drop, falling 3.07% to 16,307.16 points. The collective sell-off in tech stocks was the primary reason for the market downturn. Comments by Federal Reserve Chairman Powell on the economic situation failed to ease market concerns, and ongoing uncertainty over tariffs with China also exerted pressure on the market.

【Performance of Leading Tech】

Among the seven major tech giants, Microsoft and Apple slightly declined by 0.54% and 0.19%, respectively, while Amazon, Google, and Meta fell 1.39%, 1.74%, and 1.87%, respectively. Tesla bucked the trend, rising 0.70%, and NVIDIA performed notably well, increasing 1.35%. NVIDIA's rise is linked to its leading position in the AI chip sector, and despite potential market concerns due to comments from the Federal Reserve Chairman, NVIDIA’s market capitalization reached $2.55 trillion. Meta is currently facing antitrust scrutiny, which may impact its long-term growth.

【AI and Chip Sector】

The AI and chip sectors showed mixed performance. NVIDIA continued to lead the AI sector with gains, and SMCI also rose by 1.09%. Chip manufacturer TSMC increased by 0.96%, while chip equipment company ASML rose by 1.53%. Intel, however, fell 2.26% due to tariff impacts. Additionally, tightened U.S. chip export regulations may further affect the future performance of companies like NVIDIA and SMCI.

【EV, Weight Loss Drugs, and Other Sectors】

In the electric vehicle sector, Tesla continued its rise by 0.70%, while domestic EV manufacturers generally declined, with XPeng experiencing the largest drop at 6.02%. Weight loss drug stocks broadly fell, with Eli Lilly and Novo Nordisk declining 3.00% and 2.48%, respectively. Oil stocks and cryptocurrency-related stocks also broadly declined, impacted by slowing global oil demand and regulatory pressure on cryptocurrencies. Meme stocks showed mixed results, with AMC Entertainment rising 2.78% and GameStop falling 1.04%. In the gold sector, some stocks rose against the market trend as LBMA gold prices increased.

【Other Noteworthy Sectors】

Retail stocks generally slipped, with Walmart and Target declining 0.80% and 2.72%, respectively. Bank stocks showed mixed performance, with Bank of America and Wells Fargo rising 3.60% and 2.28%, respectively, indicating relative resilience in the financial sector. Vaccine stocks varied, with Pfizer rising 1.45%, while BioNTech fell 3.26%. In summary, Wednesday’s U.S. stock market showed overall weakness, primarily driven by the sell-off in tech stocks. Investors should monitor the Federal Reserve's policy movements and developments in U.S.-China tariff issues, as these factors may significantly influence future market trends. When selecting investments, consider current market uncertainties and prioritize companies with long-term growth potential.