Trending Sectors | Divergence in Tech, AI, EV, and Commodities Amid Market Optimism
Tuesday, Sep 3, 2024 5:31 pm ET
2min read 【Major U.S. Stock Indices】
The three major U.S. stock indices closed higher. The S&P 500 rose 1.01% to 5648.40 points; the Dow Jones Industrial Average increased by 0.55% to 41563.08 points; the Nasdaq Composite Index climbed 1.13% to 17713.62 points. The market performed robustly, benefiting mainly from expectations of an interest rate cut by the Federal Reserve and strong performance in some sectors. However, despite the overall rise, there was still significant divergence within the market, with some tech and chip stocks experiencing substantial volatility.
【Performance of Leading Tech】
The seven major U.S. tech giants generally declined. Microsoft fell 1.85%, likely due to adjusted market expectations for its future growth. The high trading volume and open interest in Microsoft options indicated significant market attention and volatility. Apple slid 2.72%, despite receiving positive reviews from Morgan Stanley and Citibank and the upcoming release of the iPhone 16. Concerns over the “Apple tax” and business layout may have impacted its stock price. Amazon dropped 1.26%; although analysts remain optimistic about its LaaS opportunities, signs of shrinking U.S. consumer spending affected its overall performance. Google A decreased by 3.68%, despite new initiatives in education and privacy protection, with mixed market reactions to its AI and video businesses. Meta fell 1.83%, as market doubts over its future profitability persisted despite new business layouts in AI and smart glasses. Tesla declined 1.64%, pressured by overall market sentiment and intensified global EV competition, even as it performed well in the Chinese market.
【AI and Chip Sector Review】
The AI and chip sectors showed significant divergence. NVIDIA plummeted 9.53%, impacted by news of a U.S. Department of Justice antitrust investigation and insider stock sales, despite a positive outlook for its AI business. SMIC rose 0.93%, with its CEO countering a short-seller report by stating there would be no significant adjustments to the financial report. Micron Technology dropped 7.96%, mainly due to market concerns over the semiconductor cycle peaking. TSMC fell 6.53%, Intel dropped 8.80%, and leading chip equipment and materials companies ASML and Applied Materials decreased by 6.47% and 7.04%, respectively. Chip design firms Broadcom, Synopsys, and Texas Instruments fell by 6.16%, 7.38%, and 5.84%, respectively.
【EV Sector Review】
The electric vehicle sector overall performed poorly. Tesla fell 1.64%, with strong performance in China not enough to counteract market sentiment and competitive pressures. Among domestic newcomers, Li Auto dropped 2.36%, NIO rose 2.72%, XPeng Motors increased 3.98%, and Zeekr declined 1.42%. In contrast, traditional automakers generally weakened, with Toyota down 1.92%, General Motors declining 2.75%, and Ford falling 1.88%.
【Weight Loss Drugs, Oil Stocks, Gold Stocks, and Digital Currency Stocks Review】
Weight loss drug stocks mostly declined, with Lilly, Novo Nordisk, AstraZeneca, and Amgen seeing varying degrees of decline, while Biogen slightly rose by 0.04%. Oil stocks fell sharply, with ExxonMobil, Occidental Petroleum, and Chevron down 2.09%, 2.77%, and 2.22%, respectively. Gold stocks broadly declined, with Barrick Gold, Newmont, and Franco-Nevada down 2.92%, 2.10%, and 2.54%, respectively. Digital currency stocks plunged, with Coinbase Global falling 7.76%, MicroStrategy declining 7.63%, Riot Platforms dropping 9.96%, and Marathon Digital falling 8.62%.
【Other Sector Performance】
Meme stocks generally declined, with AMC Theatres down 3.94% and GameStop down 1.20%. Retail stocks showed mixed performance, with Walmart slightly down 0.08%, Costco down 1.55%, Home Depot down 1.02%, Target down 1.18%, Dollar General up 0.99%, and Dollar Tree down 3.36%. Bank stocks broadly declined, with JPMorgan Chase down 2.00%, Bank of America down 0.12%, Wells Fargo down 0.17%, Morgan Stanley falling 4.19%, Goldman Sachs down 4.47%, and Citibank down 1.88%. Vaccine stocks showed mixed performance, with Pfizer down 2.45%, Moderna down 5.76%, BioNTech down 0.25%, and Novavax up 2.34%.
【Investor Advice】
Based on the above market performance and news analysis, we advise investors to remain cautious in the current market environment, particularly with the highly volatile tech and chip stocks. While some companies show positive signals in their business layout and future growth, short-term market sentiment and macroeconomic factors may still pressure stock prices. For conservative investors, we recommend focusing on consumer and financial stocks with strong fundamentals, and consider moderate allocations in gold stocks to hedge against risks.
The three major U.S. stock indices closed higher. The S&P 500 rose 1.01% to 5648.40 points; the Dow Jones Industrial Average increased by 0.55% to 41563.08 points; the Nasdaq Composite Index climbed 1.13% to 17713.62 points. The market performed robustly, benefiting mainly from expectations of an interest rate cut by the Federal Reserve and strong performance in some sectors. However, despite the overall rise, there was still significant divergence within the market, with some tech and chip stocks experiencing substantial volatility.
【Performance of Leading Tech】
The seven major U.S. tech giants generally declined. Microsoft fell 1.85%, likely due to adjusted market expectations for its future growth. The high trading volume and open interest in Microsoft options indicated significant market attention and volatility. Apple slid 2.72%, despite receiving positive reviews from Morgan Stanley and Citibank and the upcoming release of the iPhone 16. Concerns over the “Apple tax” and business layout may have impacted its stock price. Amazon dropped 1.26%; although analysts remain optimistic about its LaaS opportunities, signs of shrinking U.S. consumer spending affected its overall performance. Google A decreased by 3.68%, despite new initiatives in education and privacy protection, with mixed market reactions to its AI and video businesses. Meta fell 1.83%, as market doubts over its future profitability persisted despite new business layouts in AI and smart glasses. Tesla declined 1.64%, pressured by overall market sentiment and intensified global EV competition, even as it performed well in the Chinese market.
【AI and Chip Sector Review】
The AI and chip sectors showed significant divergence. NVIDIA plummeted 9.53%, impacted by news of a U.S. Department of Justice antitrust investigation and insider stock sales, despite a positive outlook for its AI business. SMIC rose 0.93%, with its CEO countering a short-seller report by stating there would be no significant adjustments to the financial report. Micron Technology dropped 7.96%, mainly due to market concerns over the semiconductor cycle peaking. TSMC fell 6.53%, Intel dropped 8.80%, and leading chip equipment and materials companies ASML and Applied Materials decreased by 6.47% and 7.04%, respectively. Chip design firms Broadcom, Synopsys, and Texas Instruments fell by 6.16%, 7.38%, and 5.84%, respectively.
【EV Sector Review】
The electric vehicle sector overall performed poorly. Tesla fell 1.64%, with strong performance in China not enough to counteract market sentiment and competitive pressures. Among domestic newcomers, Li Auto dropped 2.36%, NIO rose 2.72%, XPeng Motors increased 3.98%, and Zeekr declined 1.42%. In contrast, traditional automakers generally weakened, with Toyota down 1.92%, General Motors declining 2.75%, and Ford falling 1.88%.
【Weight Loss Drugs, Oil Stocks, Gold Stocks, and Digital Currency Stocks Review】
Weight loss drug stocks mostly declined, with Lilly, Novo Nordisk, AstraZeneca, and Amgen seeing varying degrees of decline, while Biogen slightly rose by 0.04%. Oil stocks fell sharply, with ExxonMobil, Occidental Petroleum, and Chevron down 2.09%, 2.77%, and 2.22%, respectively. Gold stocks broadly declined, with Barrick Gold, Newmont, and Franco-Nevada down 2.92%, 2.10%, and 2.54%, respectively. Digital currency stocks plunged, with Coinbase Global falling 7.76%, MicroStrategy declining 7.63%, Riot Platforms dropping 9.96%, and Marathon Digital falling 8.62%.
【Other Sector Performance】
Meme stocks generally declined, with AMC Theatres down 3.94% and GameStop down 1.20%. Retail stocks showed mixed performance, with Walmart slightly down 0.08%, Costco down 1.55%, Home Depot down 1.02%, Target down 1.18%, Dollar General up 0.99%, and Dollar Tree down 3.36%. Bank stocks broadly declined, with JPMorgan Chase down 2.00%, Bank of America down 0.12%, Wells Fargo down 0.17%, Morgan Stanley falling 4.19%, Goldman Sachs down 4.47%, and Citibank down 1.88%. Vaccine stocks showed mixed performance, with Pfizer down 2.45%, Moderna down 5.76%, BioNTech down 0.25%, and Novavax up 2.34%.
【Investor Advice】
Based on the above market performance and news analysis, we advise investors to remain cautious in the current market environment, particularly with the highly volatile tech and chip stocks. While some companies show positive signals in their business layout and future growth, short-term market sentiment and macroeconomic factors may still pressure stock prices. For conservative investors, we recommend focusing on consumer and financial stocks with strong fundamentals, and consider moderate allocations in gold stocks to hedge against risks.
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.