Trending Sectors | Tech and Healthcare Shine Amidst Semiconductor and Oil Struggles in U.S. Stock Review

【Major U.S. Stock Indices】

On August 1st, all three major U.S. stock indices experienced significant declines. The S&P 500 fell 1.60%, closing at 6238.01 points. The Dow Jones Industrial Average dropped 1.23%, ending at 43588.58 points. The Nasdaq was the weakest performer, decreasing by 2.24% to close at 20650.13 points. This decline was primarily due to investor concerns over the economic outlook and increased market risk aversion. Caution remains regarding potential Federal Reserve monetary policy adjustments and uncertainties in global economic growth.

【Performance of Leading Tech】

Despite the overall market downturn, performance among the major tech giants was mixed. Microsoft rose 3.95%, benefiting from its continued investment in cloud computing and AI. Apple saw a slight decline of 0.71% as market expectations for new product launches remained cautious. Amazon increased by 1.70%, reflecting its robust performance in e-commerce and cloud services. Google A dropped 2.36%, possibly due to a slowdown in ad revenue growth. Meta showed a significant gain of 11.25%, as its expansion in the metaverse sector boosted investor optimism about its future growth. Tesla fell 3.38%, marking its third consecutive day of declines amid concerns over delivery targets and competitive pressures.

【AI and Semiconductor Sector Performance】

In the AI sector, Nvidia saw a slight decline of 0.78%, while SMCI fell 2.87%, with AI-concept stocks generally under pressure. Arm Holdings notably plummeted 13.44%, amid market concerns about its acquisition prospects by Nvidia. The semiconductor manufacturing sector showed weakness, with TSMC and Intel declining 0.53% and 2.65%, respectively. Semiconductor equipment and materials stocks were also under pressure, as ASML, Applied Materials, and Lam Research fell 3.71%, 4.93%, and 4.29%, respectively. This sector's downturn reflects market concerns over global supply chain tensions and demand uncertainties.

【Electric and Traditional Vehicle Sector Performance】

The electric vehicle sector broadly declined, with Tesla down 3.38% as its market value continued to slide. Among domestic EV brands, NIO and Xpeng Motors rose 7.98% and 1.00%, respectively, while Li Auto fell 1.32%. Traditional automakers performed better, with General Motors and Ford both increasing by 2.36% and 1.84%, respectively, demonstrating market confidence in their competitiveness in the electric transition.

【Weight Loss and Healthcare Sector Performance】

Weight loss concept stocks performed well, with companies like Eli Lilly, AstraZeneca, and Novo Nordisk all recording gains, reflecting market interest in health and medical needs. Vaccine stocks generally declined, with Moderna plunging 8.06%, possibly due to weakened vaccine demand and concerns over its R&D progress.

【Other Sector Performance】

Oil stocks declined broadly, reflecting concerns that a slowdown in economic growth could impact oil demand. Digital currency stocks were mixed, with Coinbase and MicroStrategy rising, while Riot Platforms and MARA Holdings fell. Gold stocks were similarly divided, with some showing strength as gold prices increased. Bank stocks declined overall, reflecting concerns about changes in the interest rate environment.

【Investor Advice】

Overall, after a period of market gains, a pullback has occurred, and investors should closely monitor macroeconomic indicators and Federal Reserve policy developments. It is advised that investors exercise caution in the current market environment, focusing on tech and healthcare sectors with long-term growth potential while ensuring portfolio diversification to mitigate risk.