Trending Sectors | Tech and AI Surge as EVs and Oil Struggle; Retail Gains Amid Mixed Sector Performances

【Major U.S. Stock Indices】

On September 4th, all three major U.S. stock indices closed higher. The S&P 500 rose by 0.83%, closing at 6,502.08 points; the Dow Jones Industrial Average increased by 0.77%, ending at 45,621.29 points; and the Nasdaq gained 0.98%, closing at 21,707.69 points. Overall, market sentiment was optimistic, with increased investor confidence in economic prospects, particularly driven by the tech sector, which led to a standout performance for the Nasdaq.

【Performance of Leading Tech】

Among the seven major U.S. tech giants, all but Nvidia, which slipped by 0.09%, saw gains. Apple posted a significant rise of 3.81%, helping to lift the overall market. Google A surged by 9.14%, a standout performance likely linked to its recent positive earnings report and progress in AI-related businesses. Microsoft saw a slight increase of 0.05%, Amazon edged up by 0.29%, Meta rose by 0.26%, and Tesla grew by 1.44%. Tesla's performance was related to its ongoing market strategy adjustments and new model releases, while Apple's strong showing might be tied to its latest product launches and market expectations.

【AI and Chip Sector Performance】

In the AI sector, despite Nvidia declining for the fifth consecutive day by 0.09%, its market value remained a robust $4.17 trillion, underscoring its strong market leadership. However, its decline dragged down associated stocks, with SMCI falling 1.67% and Arm Holdings decreasing 0.70%. In the chip manufacturing arena, TSMC performed well with a 1.31% rise, and Broadcom's 1.39% increase reflected ongoing market demand for advanced chips. In the chip equipment and materials sector, ASML rose 1.51%, performing well against the backdrop of continued growth in global semiconductor equipment demand.

【Electric Vehicles and Other Sectors Performance】

In the electric vehicle sector, Tesla's 1.44% rise boosted market confidence, yet domestic upstarts like Li Auto, NIO, and XPeng saw declines of 1.23%, 3.95%, and 2.60%, respectively. Traditional automakers such as Toyota, General Motors, and Ford generally weakened, possibly due to global supply chain issues and intensified market competition. In the oil sector, ExxonMobil, Occidental Petroleum, and Chevron all fell significantly, reflecting the adverse effects of international oil price fluctuations on the industry.

【Cryptocurrency and Meme Stocks Performance】

Cryptocurrency-related stocks generally declined, with Coinbase Global dropping 0.41%, indicating investor caution towards the digital currency market. Meme stocks also fared poorly, with AMC Entertainment falling 2.17% and GameStop dropping 2.26%, showing waning market interest in speculative stocks.

【Other Sectors Performance】

In retail stocks, the rise of Walmart and Costco highlighted the appeal of defensive consumer spending, while Dollar Tree's sharp decline of 8.37% might be linked to poor financial performance and market expectations. Bank stocks showed mixed results, while vaccine stocks generally saw declines, with Pfizer and Moderna under slight pressure, possibly related to adjusted market expectations for vaccine demand.

【Investor Advice】

Based on the overall market performance, investors should focus on the continued growth potential of tech stocks, particularly in AI and chip sectors for long-term investment opportunities. Given increased market volatility, caution is advised for high-risk sectors such as digital currencies and meme stocks. For defensive consumer sectors and stable growth industries, like retail and certain tech stocks, investors may consider maintaining a medium to long-term focus.