Trending Sectors | AI and Chips Shine Amid Tech Giants' Resilience, While EVs and Oil Stocks Struggle

【Major U.S. Stock Indices】

On Thursday, the U.S. stock market closed with all three major indices posting declines. The S&P 500 fell by 0.53% to 5939.30 points, the Dow Jones decreased by 0.25% to 42319.74 points, and the Nasdaq dropped by 0.83% to 19298.45 points. This widespread decline suggests that investors may be cautious about the macroeconomic environment or political situation, particularly with recent diplomatic interactions between the U.S. and China and remarks by the U.S. Commerce Secretary potentially influencing market sentiment.

【Performance of Leading Tech】

Among the seven major tech giants, Microsoft saw a slight increase of 0.19%, while Apple fell by 0.22%. Microsoft hit a new all-time high, with reports indicating that it is leveraging AI to enhance EU cybersecurity, potentially providing new growth momentum. Apple faced weakened market sentiment despite Morgan Stanley reaffirming its overweight rating. Tesla dropped significantly by 3.55%, possibly related to Trump's threat to terminate Musk's government contracts. Amazon rose by 0.74%, with its AWS service announcing a price reduction for NVIDIA GPU-accelerated instances, potentially benefiting its cloud business. Google and Meta increased by 1.13% and 3.16%, respectively, signaling a recovery in the advertising market. NVIDIA saw a modest rise of 0.50%, continuing its strong performance in the AI sector.

【AI and Chip Sector Performance】

NVIDIA continued to lead the AI sector, growing by 0.50%, reflecting its sustained advantage in artificial intelligence. SMCI and Arm Holdings rose by 2.18% and 1.23%, indicating market confidence in AI and chip technology. In the chip manufacturing sector, TSMC increased by 2.42%, showing recognition for its advanced manufacturing technologies. In chip equipment and materials, ASML slightly fell by 0.60%, while Applied Materials and Lam Research saw gains, showing strong demand for chip production equipment.

【EVs, Weight-Loss Drugs, and Other Sector Performance】

In the EV sector, Tesla struggled under market pressure, with a decline of 3.55%. However, domestic newcomers like NIO and XPeng performed well. The weight-loss drug concept stocks showed an overall upward trend, with Novo Nordisk leading in gains. Oil stocks generally fell, reflecting concerns about global energy demand. In the cryptocurrency sector, Riot Platforms posted notable gains, indicating continued interest in cryptocurrencies. Meme stocks showed mixed performance, with AMC Theatres experiencing an increase.

【Other Noteworthy Sectors】

Retail stocks generally declined, with Dollar Tree experiencing the largest drop, indicating concerns about consumer demand. Bank stocks also largely fell, possibly affected by diminished economic growth expectations. Vaccine stocks were mixed; Pfizer slightly increased, while other major companies fell, reflecting uncertainty about vaccine demand.

【Market Summary and Recommendations】

Overall, market sentiment was influenced by U.S.-China diplomatic interactions and remarks by the U.S. Commerce Secretary regarding trade agreements. The tech and chip sectors continued to perform well, especially in AI-related areas. Investors should monitor changes in the macroeconomic environment and geopolitical dynamics, as these factors could affect future market trends. It is recommended that investors remain cautious, focus on sectors and companies with strong fundamentals, and flexibly adjust portfolios to navigate market uncertainties.