Trending Sectors | EVs and Oil Shine Amid Tech and Semis Slump; Defensive Plays Recommended

【Major U.S. Stock Indices】

The U.S. stock market saw a significant decline, with the S&P 500 falling 1.78% to close at 5738.52 points. The Dow Jones Industrial Average dropped 0.99%, ending at 42579.08 points, while the Nasdaq plummeted 2.61% to 18069.26 points. This performance was mainly dragged down by a broad decline in tech stocks, particularly due to concerns over tariffs and layoffs, which put pressure on overall market sentiment. Additionally, a surge in February layoff data in the U.S. exacerbated market panic.

【Performance of Leading Tech】

The top seven U.S. tech giants—Microsoft, Apple, Amazon, Google, Meta, Nvidia, and Tesla—collectively declined. Nvidia and Tesla saw the largest drops, down 5.74% and 5.61%, respectively. Microsoft announced an additional $300 million investment in AI infrastructure in South Africa, yet its stock still fell 1.03%. Apple released a new MacBook Air featuring the M4 chip at a lower price, but its stock only slightly decreased by 0.17%. Meta continued to be pressured by data privacy and regulatory issues, with its stock falling 4.35%. Tesla's performance was negatively affected by a sharp drop in sales in Germany.

【AI and Semiconductor Sector Performance】

The AI and semiconductor sectors were also under pressure. Nvidia gained attention due to rumors of OpenAI and Oracle planning to use its chips heavily in a new IDC project in Texas, but its stock still fell 5.74%. The semiconductor sector overall declined, with TSMC down 4.56% and Arm Holdings down 5.50%. Additionally, news of Trump calling for the repeal of the CHIPS Act to reduce the deficit negatively impacted sector sentiment.

【Other Sector Performance】

In the electric vehicle sector, Tesla dropped 5.61%, while domestic newcomers like XPeng Motors and Zeekr bucked the trend, rising 2.82% and 4.82%, respectively. Oil stocks generally rose, with ExxonMobil up 2.05%, reflecting market optimism about oil demand prospects. Cryptocurrency-related stocks mostly fell, with Coinbase Global down 3.72%, indicating risk-averse sentiment towards digital currencies.

【Other Noteworthy Sectors】

The banking sector generally weakened, with JPMorgan falling 2.00% and Goldman Sachs dropping 4.31%, mainly due to concerns about economic uncertainty and the regulatory environment. Vaccine stocks showed mixed performance; Pfizer rose slightly by 1.23%, while Moderna and BioNTech fell 2.58% and 3.43%, respectively.

【Investor Recommendations】

The market currently faces multiple uncertainties, including layoff data and changes in tariff policies, so investors should remain cautious. Amid the broad weakness in tech stocks, investors might consider focusing on defensive sectors such as healthcare and consumer staples. It is also important to closely monitor macroeconomic data and policy developments to adjust risk exposure in investment portfolios.