Trending Sectors | Mixed Fortunes: AI, Chips, EVs Lag, While Pharma and Gold Shine Amid Divergent Trends

【Major U.S. Stock Indices】

On May 29, Eastern Time, the three major stock indices closed higher. The S&P 500 rose by 0.40% to 5912.17 points, the Dow Jones Industrial Average increased by 0.28% to 42215.73 points, and the Nasdaq gained 0.39% to 19175.87 points. This rise was mainly driven by market optimism about economic prospects and a rebound in major tech stocks. Despite the overall positive market performance, investors still need to be aware of potential macroeconomic challenges.

【Performance of Leading Tech】

Among the tech giants, Microsoft fell by 0.72%, while Apple saw a slight increase of 0.10%. Amazon dropped 0.63%, and Tesla experienced a significant decline of 1.65%. Google and NVIDIA decreased by 0.31% and 0.51%, respectively, while Meta slightly rose by 0.20%. Microsoft's decline was linked to its recent town hall promoting AI sales, despite Barclays agreeing to purchase 100,000 licenses for Microsoft's Copilot AI assistant, which had a limited impact on its stock price. Amazon's cancellation of the SmartCockpit deal with Stellantis may have pressured its stock. Additionally, Apple's slight rise could be related to active trading in the options market.

【AI and Chip Sector Performance】

In the AI sector, NVIDIA led the decline, with a market cap of $3.40 trillion. Although its data center business performed strongly, CEO Jensen Huang's plan to sell shares might have negatively impacted investor sentiment. The chip manufacturing sector showed a downward trend, with TSMC and Intel down by 0.78% and 0.88%, respectively. Moreover, Marvell's earnings disappointed Wall Street, further dragging down the sector's performance.

【Electric Vehicle Sector】

The electric vehicle sector performed poorly, with Tesla down 1.65% as its market cap declined. Despite Tesla's upcoming showcase of its Robotaxi technology, continued losses in its insurance business pressured its stock price. Domestic EV startups generally fell, and traditional automakers like Toyota and General Motors were not spared, reflecting market caution about the automotive industry's outlook.

【Other Sector Performances】

Weight loss drug stocks performed well, with companies like Eli Lilly, Novo Nordisk, and AstraZeneca closing higher. Oil stocks generally fell, with Exxon Mobil and Chevron declining, reflecting market concerns about energy demand prospects. Cryptocurrency-related stocks plummeted, and meme stocks like AMC and GameStop also took a hit, indicating investors' risk-averse sentiment towards high-risk assets. Gold stocks showed mixed performance, with overall market demand for safe havens appearing to weaken.

【Special Focus Sectors】

Vaccine stocks fell across the board, with significant declines in companies like Pfizer and Moderna, highlighting ongoing market concerns about vaccine demand. Additionally, bank stocks such as JPMorgan Chase and Goldman Sachs also declined, indicating reduced market confidence in the financial sector.

【Summary and Recommendations】

Overall, despite the rise in the three major indices, there is internal market divergence, with tech stocks and consumer stocks showing distinct trends. Investors should continue to monitor macroeconomic data and the latest developments in AI from major tech companies. For highly volatile sectors like cryptocurrencies and meme stocks, it is advisable to remain cautious and stay informed about policy and market changes.