Trending Sectors | EVs Surge Amid Chip Tumble, Oil Gains on Supply Woes, and Gold Shines as Safe Haven

【Major U.S. Stock Indices】

The three major indices in the U.S. stock market all closed lower. The S&P 500 fell 1.12% to 5712.20 points; the Dow Jones Industrial Average decreased by 0.31% to 42454.79 points; the Nasdaq dropped 2.04% to 17899.01 points. The decline was primarily driven by a pullback in tech stocks, especially chip and AI stocks led by Nvidia, which has made market sentiment more cautious.

【Performance of Leading Tech】

Among the seven major tech giants, Microsoft rose 0.53%, Apple increased 1.37%, Amazon gained 1.21%, Google A climbed 1.72%, Meta increased 1.21%, Tesla surged 3.50%, while Nvidia fell 0.59%. Notably, Apple's recent order news boosted market confidence, including a $1 billion partnership order with Nvidia. Tesla's strong performance was bolstered by its expansion plans in the Saudi Arabian market. In contrast, Nvidia was affected by negative news related to abandoning a data center project.

【AI and Chip Sector Performance】

In the AI sector, Nvidia fell 0.59%, leading related stocks lower. In the chip sector, SMCI fell 2.59%, Arm Holdings decreased 0.46%, and Micron Technology dropped 2.85%. The chip industry overall is pressured by inventory reduction, particularly after Micron Technology's rating downgrade. Additionally, Nvidia-related stocks are limited by sales risks in China, resulting in weak overall performance.

【Electric Vehicle and New Energy Sector】

In the electric vehicle sector, Tesla rose for the fifth consecutive day, with a gain of 3.50%, as its market expansion plans in Saudi Arabia bolstered investor confidence. In contrast, domestic new forces stocks generally declined, with Li Auto down 0.53% and XPeng down 1.78%. Traditional automakers like General Motors and Ford performed strongly, rising 2.20% and 0.39%, respectively.

【Oil and Commodities Sector】

Driven by supply concerns, oil stocks rose broadly. ExxonMobil increased 0.68%, and Occidental Petroleum gained 2.27%. Meanwhile, gold stocks also generally rose, with Barrick Gold up 2.44% and Newmont increasing 1.56%, as market demand for safe havens enhanced.

【Digital Currency and Meme Stocks】

Digital currency concept stocks were mixed, with Coinbase Global up 0.59% and Riot Platforms down 2.41%. Bitcoin price fluctuations significantly impacted related stocks. In the meme stock sector, AMC Entertainment fell 0.32% and GameStop dropped 0.82%, as investor interest in these highly volatile stocks weakened.

【Vaccine and Pharmaceutical Sector】

Vaccine stocks as a whole declined, with Pfizer down 2.26% and Moderna down 0.94%. Pfizer's stock drop was partly due to the U.S. investigation report on its vaccine success, causing a cautious market response.

【Summary and Recommendations】

Overall, the U.S. stock market showed weakness under the influence of tech stock pullbacks and economic uncertainty factors. Investors should focus on macroeconomic data and industry development trends, particularly fundamental changes in the tech sector. It might be wise to consider diversified investments to mitigate risks from market volatility.