Trending Sectors | Gold Shines Amid Tech and Energy Slump; EVs and Semiconductors Hit by Trade Tensions

【Major U.S. Stock Indices】

The U.S. stock market showed strong performance, with all three major indices rising over 1%. The S&P 500 increased by 1.81%, closing at 5363.36 points; the Dow Jones Industrial Average rose by 1.56%, closing at 40212.71 points; and the Nasdaq led with a 2.06% increase, closing at 16724.46 points. Overall, market sentiment was boosted as investors seemed to digest the impact of U.S.-China trade tensions, though future uncertainties remain to be wary of.

【Performance of Leading Tech】

The major tech stocks in the U.S. generally fell. Microsoft dropped 2.34%, Apple declined 4.24%, NVIDIA decreased 5.91%, Amazon fell 5.17%, Google A dropped 3.71%, Meta was down 6.74%, and Tesla fell 7.27%. The intensifying U.S.-China trade friction, particularly China's retaliatory measure to impose a 125% tariff on U.S. goods, could pressure the supply chains and sales of these tech giants. Additionally, Apple may have to raise iPhone prices to counteract tariff impacts, while Microsoft and Amazon are affected by changes in the competitive environment within the software and retail sectors.

【AI and Semiconductor Sector Performance】

The AI and semiconductor sectors generally saw declines. NVIDIA led the related stocks downward, falling 5.91%; SMCI dropped 8.25%, Arm Holdings fell 5.75%, and Micron Technology plummeted 10.04%. Chip manufacturers like TSMC and Intel fell 4.80% and 7.66%, respectively. Furthermore, chip equipment and materials stocks such as ASML and Applied Materials decreased by 5.49% and 7.67%, respectively. The escalating U.S.-China trade tensions may further impact the supply chain in the semiconductor industry, necessitating cautious attention from investors.

【Electric Vehicle Sector Performance】

The electric vehicle sector showed mixed performance, with Tesla dropping 7.27%, reducing its market cap to $811.331 billion. In contrast, newer domestic electric vehicle companies generally rose, with Li Auto gaining 5.25% and Xpeng Motors increasing by 3.04%. Traditional automakers weakened, with Toyota falling 3.97% and General Motors dropping 4.39%. U.S.-China trade tensions could have far-reaching impacts on the global automotive supply chain, although market expectations for long-term growth in the electric vehicle sector remain optimistic.

【Oil and Energy Sector Performance】

Oil stocks generally fell, with Exxon Mobil dropping 5.55%, Occidental Petroleum falling 9.35%, and Chevron declining 7.57%. Global trade tensions and oil price volatility affected investor confidence in energy stocks. The EIA's downgrading of oil price forecasts reflects market concerns over weak global demand growth.

【Cryptocurrency and Related Stocks Performance】

Cryptocurrency-related stocks generally declined, with Coinbase Global falling 4.22% and Microstrategy dropping 8.26%. Although Bitcoin experienced a robust rebound at one point, the market remains cautious about the volatility of cryptocurrencies. Recent global market uncertainties have significantly impacted cryptocurrencies, warranting investor caution.

【Gold and Precious Metals Sector Performance】

Gold stocks generally rose, with Barrick Gold up 2.34%, Newmont increasing 4.49%, and Franco-Nevada climbing 4.83%. The rise in gold prices due to macro uncertainties boosted the performance of precious metal stocks. The heightened risk aversion in the market favored gold as a traditional safe-haven asset, attracting investor preference.

【Banking and Financial Sector Performance】

Bank stocks fell sharply, with JPMorgan Chase down 3.09%, Bank of America dropping 3.50%, and Wells Fargo decreasing 4.85%. Although some banks exceeded earnings expectations, tariff risks and global economic uncertainties put pressure on bank stocks. Investors need to monitor future policy changes and their potential impact on the financial industry.

【Other Notable Sectors】

Vaccine stocks generally declined, with Pfizer dropping 4.00% and Moderna falling 8.14%. Despite high demand for vaccines, the market remains cautious about the overall performance of the pharmaceutical sector, especially given the impact of tariff policies and industry competition.

【Investment Recommendations】

Given the current market uncertainties, investors should remain cautious and focus on U.S.-China trade dynamics and their impact on supply chains. In terms of asset allocation, it might be prudent to increase the proportion of safe-haven assets like gold, while taking a wait-and-see approach with the technology and semiconductor sectors until clearer market signals emerge.