Trending Sectors | EVs Shine Amidst Declines in Tech, AI, and Oil; Vaccine and Meme Stocks Stand Out

【Major U.S. Stock Indices】

On May 21, major U.S. stock indices saw significant declines. The S&P 500 dropped 1.61% to 5,844.61 points, the Dow Jones Industrial Average fell 1.91% to 41,860.44 points, and the Nasdaq decreased 1.41% to 18,872.64 points. The market was under pressure primarily due to economic data and policy debates, leading to negative investor sentiment.

【Performance of Leading Tech】

Among tech giants, Microsoft's stock fell slightly by 0.15%, despite progress in the AI field by introducing Anthropic's AI coding agent to GitHub services, which failed to boost its stock price. Apple dropped 0.92%, affected by news of OpenAI collaborating with its former designer Jony Ive, raising concerns about future competition dynamics. Amazon fell 1.01%, unable to escape the downward trend in the consumer sector despite announcing a renewed partnership with Nike. Google's stock declined 1.54%, despite showcasing the latest advancements in its AI ecosystem at the I/O developer conference, receiving a lukewarm market reaction. Meta dropped 0.52% with no significant news driving its stock. Tesla bucked the trend, rising 0.51%, as the market holds some anticipation for Musk's Robotaxi plans.

【AI and Chip Sector Performance】

The AI and chip sector showed overall weakness. Nvidia led the decline among related stocks, dropping 0.88% amid concerns about the U.S. failing to enforce chip export controls on China, even as it collaborates with Navitas on new technology. Related companies like SMCI, Arm Holdings, and Micron Technology also experienced various degrees of decline. In the chip manufacturing sector, TSMC and Intel saw small declines, while the equipment and materials sector was mixed, with ASML and Applied Materials slightly down and Lam Research slightly up. In chip design companies, Broadcom and Texas Instruments recorded minor gains.

【Electric Vehicle Sector Review】

In the electric vehicle sector, Tesla's stock rose 0.51%, reflecting market anticipation for its future technological developments. Domestic EV startups generally declined, with Li Auto, NIO, and XPeng recording losses. In contrast, traditional automakers performed better, with Toyota and General Motors rising.

【Weight Loss Drug and Oil Stock Performance】

Weight loss drug stocks performed poorly, with major constituents like Eli Lilly, Novo Nordisk, and AstraZeneca all declining. Oil stocks also generally fell, with ExxonMobil, Occidental Petroleum, and Chevron recording losses, reflecting concerns over energy demand.

【Cryptocurrency and Meme Stock Trends】

Cryptocurrency-related stocks showed mixed performance, with Coinbase Global and Riot Platforms falling, while MicroStrategy was slightly up. Meme stocks generally rose, with AMC Entertainment and GameStop recording significant gains, indicating short-term investor interest in these high-risk stocks.

【Other Noteworthy Sectors】

Vaccine stocks showed mixed performance, with Moderna, Pfizer, and BioNTech all rising significantly, reflecting ongoing market attention to COVID-19 vaccines. In retail stocks, Dollar General and Dollar Tree stood out, suggesting consumer spending remains active. Bank stocks performed poorly, with Morgan Stanley and Goldman Sachs recording notable declines.

【Market Summary and Recommendations】

Overall, the U.S. stock market was influenced by multiple factors, including macroeconomic data, policy debates, and corporate news. Tech giants generally declined, highlighting investor concerns over future technological competition. Despite positive technical collaboration news in the chip and AI sectors, caution remains due to export control issues. Investors should closely monitor macroeconomic trends and corporate strategy adjustments, maintaining a diversified investment portfolio to manage market volatility.