Trending Sectors | Tech and Chip Stocks Plummet, EVs and Weight Loss Drugs Show Mixed Results, Oil and Banks Decline

【Major U.S. Stock Indices】

In the recent U.S. market session, the three major indices showed weakness. The S&P 500 fell 0.30% to 5503.41 points; the Dow Jones Industrial Average dropped 0.54% to 40755.75 points; and the NASDAQ slightly increased by 0.25% to 17127.66 points. Overall market sentiment was cautious, with notable pullbacks in tech and chip stocks dragging down overall performance.

【Performance of Leading Tech】

Most of the leading tech giants saw declines. Microsoft dropped 1.64% as its board sold 78,400 shares of common stock, with significant options trading volume indicating market uncertainty about its future performance. Apple fell 0.70%, despite optimistic outlooks from institutions like Goldman Sachs and Wedbush, which forecast a potential 24% increase in its stock price. Amazon plummeted 3.65%, with high options trading volume reflecting market uncertainty regarding its future earnings. Google A decreased by 4.02%, facing scrutiny from UK regulators over its advertising business. Meta slid 3.21%, with adjustments in its European operations potentially impacting short-term performance. Tesla tumbled 8.45%, despite plans to introduce its FSD program in China and Europe next year, increased market concerns over its valuation.

【AI and Chip Sector Performance】

The AI and chip sectors performed poorly. Nvidia plunged 4.09%, with CEO Jensen Huang recently cashing out significantly, sparking further valuation concerns. SMCI dropped 6.79% following a downgrade by JPMorgan. Arm Holdings fell 4.71%, despite being a favorite of Morgan Stanley. Micron Technology declined by 3.37%, with chip manufacturing giants TSMC and Intel falling 4.20% and 2.63%, respectively. Chip equipment giant ASML dropped 5.38% due to new Dutch export regulations. Overall, the AI and chip sectors were impacted by multiple negative factors and are unlikely to shake off the adjustment trend in the short term.

【Electric Vehicle, Weight Loss Drugs, Oil, and Cryptocurrency Stocks Performance】

In the electric vehicle sector, Tesla was down 8.45%, Li Auto declined 2.92%, Nio rose 3.51% against the trend, and XPeng Motors fell 3.28%. Market focus was on Trump's plan to end electric vehicle tax credits. Weight loss drug stocks were mixed, with Eli Lilly closing down 1.05% and Novo Nordisk inching up 0.26%. The market remains optimistic about the long-term demand for weight loss drugs, but there may be short-term profit-taking pressure. Oil stocks broadly declined, with ExxonMobil down 0.47% and Occidental Petroleum down 3.18%. Analysts noted that OPEC+ delaying production increases may not change the oversupply situation next year, putting short-term downward pressure on oil prices. Digital currency stocks generally declined, with Coinbase Global down 7.73%. The continuous pullback in Bitcoin prices led to pressure on related stocks.

【Gold, Retail, and Bank Stocks Performance】

Gold stocks broadly declined, with LBMA gold price PM down 0.74% and Barrick Gold down 2.36%. Despite nonfarm payroll data sparking rate cut expectations, the dollar's decline offered limited support for gold prices. Retail stocks showed mixed performance, with Walmart down 0.42%, Costco down 1.05%, Home Depot down 0.50%, and Target down 0.41%. The overall recovery in retail demand was influenced by different companies' operational strategies. Bank stocks broadly fell, with JPMorgan down 2.38% and Bank of America down 3.44%. Market uncertainty over future interest rate policies and concerns about slowing economic growth led to weak short-term performance for bank stocks.

【Other Sectors and Stock Performance】

Vaccine stocks were mixed, with Pfizer up 0.18% and Moderna down 0.75%. Market expectations for COVID-19 vaccine demand are declining, but companies are actively developing other vaccines and drugs to address future challenges. Overall, market sentiment remains cautious. Investors should closely monitor macroeconomic data and policy changes, diversify investments reasonably, and avoid concentrated risk in a single sector.