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Sector Dynamo| AI, Chipmakers, Tech Giants Lead Gains; Electric Vehicles, Pharma, Oil, Gold Shine
AInvestThursday, Jul 11, 2024 1:39 am ET
2min read
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Review of the Three Major U.S. Indices

On July 10th, the three major U.S. stock indices all rose by over 1%. The S&P 500 Index increased by 1.02%, closing at 5633.91 points; the Dow Jones Industrial Average climbed 1.09%, ending at 39721.36 points; and the Nasdaq Composite Index went up by 1.18%, finishing at 18647.45 points. The market sentiment remained buoyant, driven primarily by expectations that the Federal Reserve will not hinder rate cuts and the robust performance of tech giants. Investor optimism propelled the overall market upward.

Broad Gains Among U.S. Big Tech

The seven major tech stocks generally rose, with Microsoft up 1.46%, Apple gaining 1.88%, Nvidia climbing 2.69%, Amazon up 0.23%, Alphabet A increasing by 1.16%, Meta rising 0.88%, and Tesla up 0.35%. Microsoft reached a $22 million settlement to resolve cloud computing antitrust complaints; Apple plans to increase iPhone 16 shipments by 10%; Google is exploring options to counter Microsoft's licensing agreements. Tesla rose for the eleventh consecutive day, with its market value rebounding to $839.588 billion. Overall, the performance expectations and business developments of these tech giants remain focal points for the market.

Focus on AI and Semiconductor Sectors

In the AI sector, Nvidia has risen for three consecutive days, gaining 7.22% over this period, with its market value reaching $3.32 trillion, leading the related concept stocks. Among Nvidia-related stocks, AMD rose 0.49%, Arm Holdings climbed 2.29%, and Micron Technology increased by 4.00%. The semiconductor manufacturing sector also performed strongly, with TSMC up 3.54% and Intel rising 0.81%. In chip design, Broadcom increased by 0.66%, Synopsys climbed 1.91%, Texas Instruments rose 1.73%, and Arm Holdings gained 2.29%. Overall, the ongoing demand for AI and semiconductor-related sectors continues to attract market attention, driving the stock prices upward.

Performance of EV, Weight Loss Drugs, Oil, and Gold Stocks

In the electric vehicle sector, Tesla rose 0.35%, with domestic new forces generally rising as well: Li Auto gained 3.03%, Nio climbed 2.67%, and XPeng Motors surged 7.46%. Weight loss drug concept stocks mostly rose, with Eli Lilly up 0.78%, Novo Nordisk increasing by 1.65%, and AstraZeneca up 1.41%. Oil stocks generally rose too, with ExxonMobil up 0.88%, Occidental Petroleum rising 0.64%, and Chevron climbing 1.41%. Gold stocks also saw widespread gains, with Barrick Gold rising 1.95% and Newmont climbing 3.58%. These sector gains were mainly driven by favorable industry news and increased market risk appetite.

Divergence in Bank and Retail Stocks

Bank stocks showed mixed performance, with JPMorgan Chase up 0.08%, Bank of America rising 0.77%, Wells Fargo down 0.27%, Morgan Stanley up 0.83%, Goldman Sachs increasing by 1.28%, and Citigroup climbing 0.65%. Retail stocks also diverged, with Walmart up 0.73%, Costco down 0.29%, Home Depot rising 2.10%, Target falling 1.01%, Dollar General down 0.81%, and Dollar Tree dropping 1.49%. The divergence in bank and retail stocks reflects differences in company performance and market expectations.

Other Notable Sectors and Stocks

Vaccine stocks generally rose, with Pfizer up 2.27%, Moderna climbing 1.18%, BioNTech up 0.98%, and Novavax rising 0.84%. Digital currency stocks diverged, with Coinbase Global down 0.19% and MicroStrategy up 0.30%. Meme stocks also showed mixed performance, with AMC Theatres down 4.58% and GameStop rising 1.50%. The performance of these stocks was influenced by news and market sentiment within their respective fields.

Market Summary and Investment Advice

Overall, the U.S. stock market continued to perform strongly, led by gains in tech giants. The AI and semiconductor sectors remained market favorites, while EV, weight loss drugs, oil, and gold stocks also performed well. The divergence in bank and retail stocks reflects varying company performance and market reactions. It is recommended that investors monitor the ongoing performance of tech giants and the AI and semiconductor sectors, while also paying attention to shifts in market sentiment. Maintaining a diversified investment strategy can help manage potential market volatility.


Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.