Sector Dynamo | Tech, AI, EV, and Crypto Stocks Tumble; Oil and Bank Stocks Show Mixed Results

【Performance of Major U.S. Stock Indices】

The three major U.S. stock indices closed down. The Dow Jones Industrial Average fell 0.6% to 38,997.66 points; the Nasdaq Composite dropped 1.05% to 16,366.85 points; and the S&P 500 lost 0.77% to close at 5,240.03 points. Overall market sentiment leaned towards caution, influenced by multiple macroeconomic factors and individual stock performances. Investors remain watchful of the future economic outlook and upcoming corporate earnings reports.

【Performance of Leading Tech Stocks】

The leading tech stocks generally underperformed. Microsoft fell 0.30%, Apple rose 1.25%, Nvidia plummeted 5.12%, Amazon edged up 0.52%, Google A inched up 0.41%, Meta dropped 1.05%, and Tesla tumbled 4.43%. Apple is considered the biggest loser in the Google antitrust case, which could cut its future profits by 17%. Tesla's stock was significantly affected by a vehicle recall event in the Chinese market. Meta issued several bonds totaling $10.5 billion, with mixed market reactions.

【Performance of AI and Semiconductor Stocks】

The AI and semiconductor sectors showed general weakness. Nvidia fell 5.12%, AMD plummeted 20.14%, Arm Holdings declined 5.56%, and Micron Technology dropped 2.47%. Despite the delay in Nvidia's next-generation AI chip delivery, analysts believe there's no need for excessive concern. However, AMD's profitability was again questioned, causing a sharp decline in its stock price. Intel saw a 4.24% decrease, impacted by nearly 20,000 employees leaving, along with wage pressures and intensified competition.

【Performance of EV, Weight Loss Drug, Oil, Gold, Cryptocurrency, and Meme Stocks】

In the EV sector, Tesla dropped 4.43% due to the vehicle recall event in China. Among domestic newcomers, Li Auto rose 1.53%, Nio fell 2.65%, and XPeng Motors plummeted 5.40%. In the weight loss drug category, Novo Nordisk tumbled 8.27%, and Eli Lilly fell 2.43%. Oil stocks were mixed, with ExxonMobil up 1.33% and Occidental Petroleum slightly down 0.04%. Cryptocurrency stocks took a hit, with Coinbase Global down 7.86% and MicroStrategy down 8.94%. Among meme stocks, AMC Entertainment dropped 5.12%, and GameStop fell 2.11%. Gold stocks generally declined, with Barrick Gold down 3.34% and Newmont down 2.52%.

【Other Notable Sectors and Stocks】

Retail stocks broadly fell, with Walmart down 1.23% and Costco down 0.81%. Bank stocks were mixed; JPMorgan Chase rose 0.03%, and Bank of America increased 1.03%. Vaccine stocks generally declined, with Pfizer down 1.60% and Moderna down 0.91%. Qualcomm announced that its Snapdragon 8 Gen 4 chip surpasses Apple's A17 Pro, potentially impacting future market competition.

【Market Trends and Investment Advice】

The overall market sentiment from the U.S. market leans towards caution, with most sectors and individual stocks showing weakness. Investors should pay attention to upcoming corporate earnings reports and macroeconomic data, particularly the trends in the AI and semiconductor sectors, to gauge future market directions. It is advisable for investors to remain cautious, diversify their portfolio, and avoid overconcentration in a single sector or stock to navigate market volatility effectively.