Trending Sectors | AI and Chip Surge, EVs See Mixed Results, Oil and Weight Loss Drugs Face Declines

【Major U.S. Stock Indices】

The S&P 500 index rose by 0.36% to close at 6083.57 points; the Dow Jones Industrial Average fell by 0.28% to finish at 44747.63 points; and the tech-heavy Nasdaq index increased by 0.51% to settle at 19791.99 points. Overall, the market showed a mild uptrend supported by technology stocks, despite a decline in the Dow, with strong tech performance providing some market backing.

【Performance of Leading Tech】

Among the leading tech giants, Microsoft rose by 0.61%, Apple by 0.32%, Nvidia stood out with a gain of 3.08%, Amazon increased by 1.13%, Alphabet A saw a slight rise of 0.14%, Meta went up by 1.01%, while Tesla fell by 1.02%. Amazon's rise was partly due to its "successful" holiday season performance in its fourth-quarter earnings report, although its first-quarter guidance did not satisfy investors. Additionally, Alphabet announced the public beta of its generative AI toolbox for databases, which supported its stock price. Tesla was impacted by declining sales in Europe, with the market remaining cautious about its future international performance.

【AI and Chip Sector】

In the AI sector, Nvidia led the related stocks with a gain of 3.08%, reaching a market cap of $3.15 trillion. Nvidia's continuous growth is attributed to its dominance in the GPU market, particularly driven by AI applications. SMCI rose by 7.46%, while Arm Holdings fell by 3.34% due to concerns over slowing AI growth. In the chip manufacturing sector, TSMC increased by 0.93%, while Intel declined by 1.37%.

【EVs, Weight Loss Drugs, and Oil Stocks】

In the electric vehicle sector, Tesla continued its two-day decline, while domestic newcomers like Li Auto and XPeng posted significant gains. Oil stocks generally fell, with ExxonMobil and Chevron not spared, primarily due to weak international oil prices. In the weight loss drug sector, Eli Lilly and Novo Nordisk performed well, while GlaxoSmithKline and Biogen saw significant declines.

【Other Notable Sectors】

Bank stocks generally rose, with JPMorgan Chase and Citigroup each increasing by over 2%, mainly benefiting from positive news of the Federal Reserve easing stress tests for banks. In retail, Walmart and Costco remained stable, rising by 0.34% and 0.78%, respectively.

【Investor Advice】

Considering the current market performance, investors may focus on tech stocks, particularly in the AI and chip industries, as these sectors may continue to benefit from technological innovation and market demand in the near future. Meanwhile, investments in traditional energy and retail sectors should be approached with caution. Despite short-term market fluctuations, these industries might face more challenges in the long run. Overall, diversifying investments and closely monitoring market trends will help manage risks and capture potential investment opportunities.