Trending Sectors | EV Surge & Oil Strengthen Amid Tech Slump: Key Insights for Investors

【Major U.S. Stock Indices】

The three major U.S. stock indices closed lower. The Dow Jones Industrial Average fell 0.41%, the Nasdaq dropped 1.53%, and the S&P 500 lost 0.93%. Leading tech stocks weakened, dragging down overall market performance. Heightened geopolitical tensions have made investors more cautious.

【Performance of Leading Tech】

Most of the major U.S. tech giants fell. Microsoft dropped 2.23% due to further scrutiny of its AI applications and collaboration with OpenAI by Germany's antitrust agency, although its power purchase agreement with the UK National Grid supports its sustainable development. Apple fell 2.91% as expectations of weak demand for the iPhone 16 pressured its stock. Amazon dipped slightly by 0.64%, despite increased market confidence due to its pharmacy service expansion. Google A and Meta rose 0.69% and 0.70%, respectively, benefiting from optimistic expectations about AI investments. Tesla fell 1.38%, despite positive quarterly sales growth expectations, due to overall market sentiment being weak.

【AI and Semiconductor Sector】

The AI-related sector faced pressure, with NVIDIA leading declines at 3.66%. The semiconductor sector was generally weak, with Qualcomm down 2.51% despite its partnership with Epic Games. Intel and Micron Technology both fell by 3.28%. Rising geopolitical tensions add more uncertainty to the semiconductor industry, while Hurricane Helene may disrupt supply chains.

【Electric Vehicle Sector】

In the electric vehicle sector, Tesla's stock fell by 1.38%. However, Chinese EV companies like Li Auto, NIO, and XPeng surged due to record delivery numbers, with Zeekr climbing as much as 10.18%. This indicates growing market confidence in Chinese EV companies.

【Oil and Gold Sector】

Oil stocks generally rose amid increasing oil prices, with ExxonMobil up 2.35% and Occidental Petroleum up 3.32%. Gold stocks also rose, driven by increased demand for safe havens, with Barrick Gold up 2.06%. Geopolitical tensions have driven these safe-haven assets higher.

【Cryptocurrency and Meme Stocks】

Digital currency stocks generally fell, with Coinbase Global down 7.39%. This is related to the drop in Bitcoin prices and tensions in the Middle East. Meme stocks like AMC Theatres and GameStop fell 3.19% and 4.19%, respectively, as market risk appetite decreased.

【Other Notable Sectors】

Retail stocks showed mixed performance, with Walmart up 0.64% and Target down 2.35%. In banking, JPMorgan Chase and Wells Fargo fell 1.83% and 1.89%, respectively. Vaccine stocks were also mixed, with BioNTech up 0.98% and Moderna down 4.34%.

【Investment Advice】

The market is generally under pressure, and investors should closely monitor the ongoing impact of geopolitical developments on the market, particularly the potential risks to the semiconductor and energy sectors. As market volatility increases, investors should remain cautious when allocating assets and consider opportunities in safe-haven assets like gold.