Trending Sectors | Gold Shines, AI and Chip Struggle, Chinese EVs Surge, Oil Dips Amid Sector Volatility

【Major U.S. Stock Indices】

On January 24 (Friday), Eastern Time, the three major U.S. stock indices closed lower collectively. The S&P 500 fell 0.29% to 6100.72 points; the Dow Jones Industrial Average dropped 0.33% to 44418.77 points; the Nasdaq Composite decreased 0.47% to 19959.13 points. The overall market was influenced by economic uncertainty, leading to cautious investor sentiment. Notably, the weak performance of major tech stocks significantly dragged down the Nasdaq.

【Performance of Leading Tech】

Among the top tech giants, Meta led with a 1.73% increase, reflecting market optimism about its future investments in artificial intelligence. Google A also rose by 1.13%, related to its initiatives in AI and chip sectors. Apple slightly declined by 0.39%, with its recent AI business restructuring possibly offering some support for its stock price. Microsoft dropped 0.59%, with its upcoming earnings report next week likely to attract market attention. Tesla fell by 1.41%, as investors remain skeptical about its AI vision despite unveiling new models. Amazon edged down 0.24%, while Nvidia dropped 3.12% due to strong competitors and a weak market.

【AI and Chip Sector】

In the AI sector, Nvidia led the decline with a 3.12% drop. In the chip sector, Texas Instruments fell 7.52% following weak guidance, and Intel significantly dropped 3.43% due to market uncertainty. Nevertheless, Broadcom rose 1.84% against the trend, showing market confidence in its chip design capabilities. Overall, the chip sector continues to face challenges from uncertain global market prospects.

【Electric Vehicles and Related Sector】

Tesla fell for the fourth consecutive day, with a cumulative decline of 4.67%, highlighting the market's cautious stance on its AI development path. In contrast, Chinese EV companies like Li Auto, NIO, and XPeng saw widespread gains, reflecting market optimism about their growth potential. Traditional automakers performed poorly, with General Motors and Ford experiencing slight declines.

【Oil and Gold Sector】

Oil stocks generally fell, with ExxonMobil and Occidental Petroleum experiencing various degrees of decline, as concerns about oil supply and demand prospects intensified. Gold stocks, however, rose broadly, with Barrick Gold and Newmont both gaining, reflecting investors' preference for safe-haven assets in an uncertain market environment.

【Cryptocurrency and Meme Stocks】

Digital currency-related stocks showed mixed performance, with Coinbase slightly up and MicroStrategy plunging 5.21%, as concerns over cryptocurrency regulatory prospects intensified. Among meme stocks, AMC Entertainment rose 0.44%, but GameStop fell 2.01%, indicating waning investor interest in these high-volatility stocks.

【Other Notable Sectors】

In retail stocks, Walmart posted a significant gain of 1.07%, while Costco saw a slight decline of 0.26%. Bank stocks showed mixed results, with Bank of America slightly up 0.26%, while JPMorgan Chase and Goldman Sachs both saw declines. Vaccine stocks generally fell, with Moderna and BioNTech experiencing significant declines, reflecting market concerns over vaccine demand.

【Market Summary and Recommendations】

The current market is exhibiting high volatility due to economic uncertainty and the corporate earnings season. Investors need to closely monitor upcoming corporate earnings and macroeconomic data, remaining sensitive to market changes. In terms of sector selection, considering the current market environment, safe-haven assets like gold may offer some investment protection, while long-term positioning in technology and AI sectors should focus on companies' actual progress and competitive landscape.