Trending Sectors | Energy Rises, EVs Dip; Mixed AI & Chip Gains; Precious Metals Shine Amid Market Volatility

【Major U.S. Stock Indices】

The U.S. stock market displayed overall weakness, with all three major indices closing lower. The S&P 500 dropped 1.1% to close at 4510.15, while the Dow Jones Industrial Average fell by 113 points, or 0.33%, to close at 34675.08. The Nasdaq Composite had the steepest decline, down 1.9% to 13835.71. The market was impacted by the downward pressure from major tech stocks and investor concerns over economic data evaluations and rising yields, resulting in cautious market sentiment.

【Performance of Leading Tech】

Most tech giants declined, with Microsoft down 1.28% due to continued investments in AI not yielding short-term benefits. Apple fell 1.14% after MoffettNathanson downgraded its rating from neutral to sell, lowering the target price from $202 to $188. Amazon's stock dropped 2.42%, despite attention on AWS's collaboration with Honda, as overall market sentiment weighed it down. Google, benefiting from positive AI developments and personnel changes, saw a smaller decline of 0.70%. Meta's stock fell 1.95%, despite receiving a buy rating from Stifel, as the market's acceptance of its new strategy remains to be seen. Tesla declined 4.06% due to negative reviews from Wall Street analysts, while Nvidia plunged 6.22% as its new products failed to meet high market expectations.

【AI and Chip Sector Performance】

The AI and chip sector showed mixed performance. Nvidia dropped 6.22% following market adjustments after its new product release, causing related stocks like SMCI to fall 5.68%. However, Micron Technology rose 2.67% due to rising demand for AI and ASIC chips. TSMC's stock fell 3.90% amid expectations for chip demand. Meanwhile, Intel saw a slight increase of 0.70% thanks to stable market demand. At the CES convention, companies showcased new products, indicating ongoing market interest in AI and chips.

【EV and Traditional Auto Sector Performance】

The electric vehicle sector mostly fell, with Tesla down 4.06% primarily due to unmet delivery volume expectations. Among emerging domestic players, NIO dropped 4.25%, while XPeng Motors soared 9.49% due to innovative collaborations. In contrast, traditional automakers like Toyota saw a modest rise of 1.43%, reflecting investor appreciation for its steady performance.

【Energy and Precious Metals Sector Performance】

The energy sector broadly gained, propelled by rising oil prices, with ExxonMobil and Chevron both up over 1%. Gold stocks increased due to a weakening dollar, with Barrick Gold and Newmont registering slight gains, indicating heightened market sentiment toward precious metals as a safe haven.

【Cryptocurrency and Meme Stock Performance】

Cryptocurrency-related stocks mostly declined, with Coinbase Global falling 8.14%, primarily due to Bitcoin price volatility. Meme stocks performed relatively better, with AMC Entertainment and GameStop both seeing slight increases, as investors continue to monitor the dynamics of these stocks.

【Other Notable Sectors】

Retail stocks showed mixed results, with Walmart and Costco down 0.70% and 0.15%, respectively, while Target remained flat. In the banking sector, Bank of America rose 1.50%, reflecting market confidence in its future performance. Vaccine stocks continued their upward momentum due to ongoing concerns over flu and avian influenza, with Moderna up 11.65% and Novavax rising 10.86%.

【Market Summary and Recommendations】

The decline in the U.S. stock market reflects investor concerns about economic prospects and reevaluation of high valuations in tech stocks. Investors should closely watch economic data and Federal Reserve policy developments while maintaining a diversified portfolio, focusing on defensive sectors like precious metals and energy stocks. Given the volatility in tech stocks, moderately allocating investments in chip and AI-related stocks could capture potential growth opportunities.