Trending Sectors | AI and Chips Surge Amid Volatility; EVs and Gold Struggle, Oil Stocks Shine

【Major U.S. Stock Indices】

The U.S. stock market showed weakness, with all three major indices closing lower. The Dow Jones Industrial Average fell 0.44%, the S&P 500 decreased 0.17%, and the Nasdaq edged down 0.04%. Investor sentiment was affected by tensions in the Middle East, leading to increased market volatility.

【Performance of Leading Tech】

The seven major tech giants had mixed performances. Microsoft slightly declined by 0.14%, with BMO Capital Markets maintaining its buy rating and a price target of $500, indicating confidence in its long-term growth. Apple fell 0.49%, with active options trading and open interest reaching 6.0362 million contracts, reflecting investor attention on its future movements. Amazon dropped significantly by 1.52%, with potential positive impacts from the addition of an Xbox co-founder on its devices and services. Google remained flat, as it develops new AI software and considers using nuclear power to reduce the carbon footprint of its data centers. Meta rose 1.74%, drawing market attention with its plans to train AI using Ray-Ban glasses. Tesla plunged 3.36%, as its battery project showed highlights, but market dissatisfaction with its delivery growth persisted.

【AI and Chip Sector】

The AI and chip sector performed strongly, with Nvidia rising over 3%, driven by OpenAI financing and expectations of increased AI spending, bringing its market cap to $3.01 trillion. Chip-related stocks like SMCI and Micron Technology also performed well. In the chip manufacturing sector, TSMC rose 2.09%, while Intel experienced a slight decline due to market rumors. Among chip design companies, Broadcom saw a slight increase, whereas Texas Instruments experienced a small decrease.

【EV and Other Sectors】

The electric vehicle sector generally declined, with Tesla dropping 3.36%. Chinese EV stocks like NIO and XPeng fell even more, possibly impacted by international tensions and market sentiment. In contrast, oil stocks rose broadly, with ExxonMobil and Occidental Petroleum showing significant gains, benefiting from rising oil prices.

【Gold and Cryptocurrency】

Gold stocks generally fell due to a decline in gold prices; cryptocurrency-related stocks had mixed performances. Bitcoin mining companies like Riot Platforms rose, while Coinbase saw a slight decline, as market risk appetite for cryptocurrencies fluctuated.

【Other Noteworthy Sectors】

Retail and vaccine stocks showed varied performances. Walmart remained flat, while Costco slightly declined. Vaccine stocks like Pfizer and Moderna weakened, reflecting market concerns over vaccine demand.

【Investment Advice】

Given the current international tensions and increased market volatility, investors should exercise caution, particularly with highly volatile sectors such as tech and new energy vehicles. Consider focusing on companies with stable growth and energy stocks that benefit from international situations.