Trending Sectors | Tech Giants Falter, AI and EV Stocks Slide, Gold and Vaccine Stocks Emerge as Safe Havens

【Major U.S. Stock Indices】

In trading on March 31st, Eastern Time, the three major U.S. stock indices showed mixed results. The S&P 500 rose 0.55% to 5611.85 points; the Dow Jones increased 1.00% to 42001.76 points; while the NASDAQ slightly fell by 0.14% to 17299.29 points. Overall, the Dow's rise was notable, mainly driven by heavyweights Amgen and IBM, while the weakness in tech stocks dragged the NASDAQ down.

【Performance of Leading Tech】

The seven major U.S. tech giants (Microsoft, Apple, Nvidia, Amazon, Google, Meta, Tesla) generally declined, reflecting a weak performance in the technology sector. Microsoft fell 3.02%, possibly affected by its cancellation of a 2GW data center project in Europe and the U.S., which caused market disagreement. Meanwhile, Microsoft options trading was active, showing investors' interest in its future trends. Apple fell 2.66%, despite its improved market performance in China and plans to upgrade its health applications providing some positive news. Amazon dropped 4.29% amid competitive pressures with OpenAI and Anthropic in the AI field, potentially causing market uncertainty. Google declined 4.88%, impacted by new Japanese regulations restricting its monopolistic behavior. Meta and Tesla fell by 4.29% and 3.51%, respectively, as the market questions Meta's performance in interactive media and Tesla's competitiveness in the electric vehicle market.

【AI and Chip Sector Performance】

AI-related sectors performed poorly, with Nvidia down 1.58%, marking its fourth consecutive day of decline, leading to a significant shrinkage in market value. Nvidia-related stocks like SMCI, Arm Holdings, and Micron Technology showed a downward trend, dropping 1.32%, 4.15%, and 2.98%, respectively. Additionally, chip manufacturers and equipment companies like TSMC and ASML also saw declines. The market remains cautious about the long-term prospects of AI and chip sectors, with Goldman Sachs noting that AI investments may not yield results in the short term.

【Electric Vehicles and Other Sector Trends】

The electric vehicle sector broadly declined, with Tesla down 3.51%, reducing its market value to $833.593 billion. Domestic new forces such as Li Auto, Nio, and Xpeng also recorded various degrees of decline. Oil stocks fell broadly due to market volatility, with ExxonMobil and Chevron both recording slight declines. Digital currency stocks were under pressure as well, with Coinbase Global and Microstrategy dropping 7.77% and 10.84%, respectively. Meme stocks like AMC Entertainment and GameStop continued their downward trend.

【Other Sectors to Watch】

Gold stocks showed mixed performance, despite an increase in LBMA gold prices, major mining companies like Barrick Gold and Newmont displayed declines. The retail sector broadly declined, with retail giants like Walmart and Costco experiencing varying degrees of drops. Bank stocks were also under pressure, with major financial institutions like JPMorgan Chase and Bank of America recording significant declines. In the vaccine stocks, Pfizer rose 0.80%, while Moderna and Novavax saw declines.

【Investor Advice】

Considering the current market performance, investors should remain cautious, especially in the technology and chip sectors. Though tech stocks are under pressure short term, their long-term investment value remains. Investors should keep an eye on risks brought by macroeconomic and policy changes in the energy and financial sectors. As market volatility intensifies, safe-haven assets like gold may become a focal point for investors. It's recommended that investors maintain a diversified portfolio to address market uncertainties.