Trending Sectors | Tech and AI Struggle, EVs Mixed, Weight Loss Drugs Decline, Oil and Crypto Face Volatility

【Major U.S. Stock Indices】

The U.S. stock market ended with mixed results, with all three major indices closing lower. The Dow Jones Industrial Average fell 0.21% to 42,233.05 points; the Nasdaq dropped 0.56% to 18,712.75 points; and the S&P 500 decreased by 0.33% to 5,832.92 points. Market sentiment was dragged down by a broad decline in chip stocks, primarily due to AMD's disappointing fourth-quarter outlook. Nonetheless, strong gains in Google partially offset this impact. Overall, the market remains cautious ahead of tech earnings reports.

【Performance of Leading Tech】

Among the seven major tech giants, Microsoft edged up 0.13% thanks to growth in its intelligent cloud revenue, which increased 20% year-over-year. Apple fell 1.53% as investors maintained a cautious approach ahead of its upcoming earnings. Amazon rose 1.00%, driven by optimism about its AWS and advertising business outlook. Google A surged 2.82%, propelled by a 35% year-over-year increase in cloud revenue. Meta dipped 0.25%, despite reporting record operating income, as slowing digital advertising growth raised market concerns. Tesla dropped 0.76%, with the market wary of costs and risks associated with its future Mars missions. Nvidia fell 1.36% amid market concerns about chip demand.

【Performance of AI and Chip Sector】

In the AI sector, Nvidia led the declines with a 1.36% drop, with a market cap reaching $3.42 trillion. AMD plummeted over 10% due to a poor fourth-quarter outlook. Additionally, news that OpenAI plans to scale down its chip business and collaborate with Broadcom pressured related stocks. The chip manufacturing sector also suffered, with TSMC and Intel down 1.25% and 2.62%, respectively. Chip equipment and materials companies like ASML and Applied Materials weren't spared, falling 4.38% and 2.54%, respectively.

【Performance of Electric Vehicle Sector】

In the electric vehicle sector, Tesla fell for the third consecutive day, with a total decline of 4.32%, bringing its market cap down to $826.751 billion. Chinese EV companies performed poorly, with Nio and XPeng Motors dropping 4.46% and 2.16%, respectively. In contrast, Li Auto rose 1.83% against the trend. Traditional automakers remained relatively stable, with General Motors and Ford rising 0.83% and 0.58%, respectively.

【Performance of Weight Loss Drug Sector】

The weight loss drug sector saw more declines than gains. Eli Lilly plummeted nearly 7% due to disappointing third-quarter revenue, while Novo Nordisk edged up 1.13% as the FDA listed the lowest dosage of its weight loss drug, Wegovy, as available. AstraZeneca fell 3.18% on news of cooperation from its head of China operations in an investigation.

【Performance of Oil Stocks】

The oil sector was mixed, with Exxon Mobil edging down 0.50% and Occidental Petroleum rising slightly by 0.18%. The market remains divided over the future direction of oil prices, with some investors concerned that geopolitical factors could cause price volatility.

【Performance of Cryptocurrency Stocks】

Cryptocurrency-related stocks tumbled, with Coinbase Global down 3.61%, and Microstrategy and Riot Platforms falling 4.23% and 3.59%, respectively. The market remains cautious about the regulatory outlook for cryptocurrencies.

【Other Sectors in Focus】

Notably, the retail sector was mixed, with Target up 0.40%, while Dollar Tree and Home Depot fell 1.84% and 0.65%, respectively. In the vaccine sector, Pfizer edged up 0.21%, while Moderna fell 0.91%. The banking sector also showed divergence, with JPMorgan Chase rising 0.68% and Morgan Stanley falling 1.16%. In summary, investors should remain vigilant in the current market environment, paying attention to the earnings performance of major tech companies and chip firms, and closely monitoring how geopolitical and economic policy changes may potentially impact the market.