Trending Sectors | Tech Tumbles, EVs Skid, Weight Loss Drugs Soar: Key Sector Highlights and Opportunities

【Major U.S. Stock Indices】

In the U.S. market, the S&P 500 edged up 0.03% to 5634.58 points; the Dow Jones Industrial Average dipped 0.04% to 41606.18 points; the Nasdaq rose 0.20% to 17628.06 points. Overall market performance was mixed following a 50-basis-point rate cut by the Federal Reserve, with investor sentiment remaining cautious.

【Performance of Leading Tech】

Among the top seven tech giants, Microsoft fell 1.00% despite announcing a dividend increase and a $60 billion stock buyback plan. Apple rose 1.80%, benefiting from positive market reactions to new product launches. Nvidia dropped 1.92% with a lukewarm response to its acquisition of OctoAI. Amazon slipped 0.24%, even after announcing wage increases and a $2.2 billion holiday investment. Google A inched up 0.31%, while Meta climbed 0.30%, both buoyed by a favorable outcome in an EU antitrust fine challenge. Tesla declined 0.29%, despite resolving battery issues, as overall market sentiment weighed on its stock.

【AI and Chip Sector】

Nvidia fell 1.92%, continuing its recent downtrend, despite its acquisition plans for OctoAI. SMCI declined 0.57%, as concerns about slowing chip demand persisted. The broad decline in AI and chip stocks reflected investor caution about future growth, even as the Fed's rate cut could boost capital inflows. Semiconductor manufacturing and equipment companies like ASML and Applied Materials also followed suit, pressured by ongoing worries over U.S.-China chip technology export restrictions.

【EV and Weight Loss Drug Sector】

In the electric vehicle sector, new entrants saw declines: Li Auto dropped 2.95%, NIO fell 7.21%, XPeng slid 4.53%, and Zeekr declined 5.96%. Traditional automakers like Toyota and General Motors performed relatively better, indicating continued investor skepticism about the profitability of newer players. In the weight loss drug sector, Eli Lilly edged down 0.12%, but Viking Therapeutics surged 2.40%, as investors remained optimistic about innovative drugs in this field.

【Other Sector Performance】

In the oil sector, Chevron and ExxonMobil saw slight gains, benefiting from stable oil prices. The cryptocurrency sector showed mixed results, with Coinbase and MicroStrategy posting slight gains, while MARA Holdings plummeted 3.34%. Meme stocks like AMC and GameStop broadly declined as speculative fervor waned. Gold stocks fell, even though gold prices hit record highs, as investors were wary of inflation risks post-rate cut.

【Other Notable Sectors】

In retail, Target rose 1.08%, reflecting market approval of its holiday season strategies. Bank and vaccine stocks generally fell, with BioNTech plunging 7.29%, as investors remained cautious about future growth in the COVID-19 vaccine market.

【Market Advice】

Overall, the U.S. stock market showed mixed performance amid rate cuts, and investors should pay attention to the long-term impact of Federal Reserve policies on different sectors. It is recommended to remain flexible amid current market volatility, focusing on sectors with strong fundamentals that benefit from policy changes, such as innovative companies in the AI and chip fields. In high-growth areas like electric vehicles and weight loss drugs, be wary of short-term market sentiment fluctuations.