Trending Sectors | AI & Semiconductors Shine, EVs Surge, Tech Giants Lead Gains, Oil Stocks Decline

【Major U.S. Stock Indices】

The major U.S. stock indices showed robust performance. The Dow Jones Industrial Average rose by 1.04%, closing at 39,357.01 points; the S&P 500 Index increased by 1.66%, reaching 5,344.39 points; the Nasdaq Index saw a more significant rise of 2.43%, closing at 16,780.61 points. Overall market sentiment was positive, primarily driven by tech stocks, with investors optimistic about future economic prospects.

【Performance of Leading Tech】

The leading tech stocks broadly increased. Microsoft rose by 1.77%, Apple by 1.72%, Nvidia surged by 6.53%, Amazon increased by 2.06%, Alphabet A rose by 1.15%, Meta by 2.44%, and Tesla showed strong performance with a rise of 5.24%. Notably, Vanguard Group increased its holdings in Nvidia, Apple, Microsoft, Alphabet A, and Alphabet C during the second quarter. News of the U.S. Department of Justice considering the breakup of Google did not significantly impact its stock price, while Tesla's performance was particularly bright following Elon Musk's announcement of the upcoming AI model Grok 2.

【AI and Semiconductor Sector Performance】

The AI and semiconductor sectors performed excellently. Nvidia led the gains, with a rise of 6.53% and a market cap reaching $2.86 trillion. SMIC increased by 4.89%, Arm Holdings by 5.69%, and Micron Technology by 2.96%. Intel rose by 5.73%, TSMC by 2.81%, ASML by 1.95%, and Applied Materials by 3.99%. Nvidia's strong performance uplifted the entire AI and semiconductor sector, particularly attracting many investors ahead of its earnings release.

【Electric Vehicles, Weight Loss Drugs, and Oil Stocks Performance】

The electric vehicle sector performed brightly. Tesla rose by 5.24%, among new domestic players, XPeng Motors increased by 5.13%, Zeekr by 6.89%, NIO by 3.46%, while Li Auto slightly declined by 0.62%. Among traditional automakers, Toyota rose by 2.63%, and Ford by 2.84%. In the weight loss drug sector, Eli Lilly increased by 2.67%, Novo Nordisk by 2.80%, and AstraZeneca by 1.03%. Oil stocks generally fell, with ExxonMobil declining by 0.96%, Occidental Petroleum by 2.58%, and Chevron by 0.60%.

【Other Noteworthy Sectors and Stocks】

Cryptocurrency stocks broadly increased, with Coinbase Global rising by 3.23% and MicroStrategy by 2.98%. Meme stocks also showed positive performance, with AMC Theatres rising by 2.18% and GameStop by 1.78%. Gold stocks were mixed, with Barrick Gold rising by 0.74% and Newmont by 0.47%. In the retail sector, Home Depot rose by 1.23% and Target by 1.21%. Bank stocks broadly increased, with JPMorgan Chase rising by 0.85% and Bank of America by 0.76%. Vaccine stocks broadly increased, with Pfizer rising by 1.41% and Moderna by 1.98%.

【Summary and Recommendations】

The U.S. stock market demonstrated overall strength, with tech stocks, especially in the AI and semiconductor sectors, driving the overall market rise. Investors are paying attention to macroeconomic data while closely monitoring corporate earnings and industry trends. With the general rise in tech stocks, investors should be aware of changes in market sentiment and remain cautious with highly valued stocks. For long-term investors, focusing on tech giants with strong fundamentals and sectors with growth potential, such as AI, semiconductors, and electric vehicles, might be a more prudent strategy.