Trending Sectors | Oil Gains Shine Amid Tech, EV, and Chip Struggles; Weight Loss Drugs and Gold Show Promise

【Major U.S. Stock Indices】

The U.S. stock market performed poorly, with all three major indices closing lower. The S&P 500 fell 0.43% to 5,881.63 points; the Dow Jones Industrial Average slightly declined by 0.07% to 42,544.22 points; and the Nasdaq dropped 0.90% to 19,310.79 points. This decline reflects market concerns about future uncertainties, especially after Warren Buffett advised buying the S&P 500 while warning of a potential "rude awakening," which made market sentiment more cautious.

【Performance of Leading Tech】

The leading tech giants generally declined, with Microsoft down 0.78%, Apple down 0.71%, Nvidia down 2.33%, Amazon down 0.86%, Google A down 1.01%, Meta down 0.97%, and Tesla down 3.25%. Tesla's recent stock price drop over four consecutive days was triggered by the Cybertruck explosion incident, weakening market confidence. Meanwhile, Apple faced legal pressure over a Siri privacy claim, paying $95 million to resolve the issue. Microsoft encountered market skepticism due to a Win11 BitLocker encryption vulnerability, negatively impacting its stock price.

【AI and Chip Sector Performance】

The AI and chip sectors were also under pressure, with Nvidia down 2.33%, SMCI down 0.65%, Arm Holdings down 2.03%, and Micron Technology down 1.35%. Despite Wedbush's continued optimism about Nvidia, its stocks performed poorly, possibly due to market concerns about the overall future profitability of the chip industry. Additionally, reports that TSMC delayed Apple's new product plans due to high 2nm process pricing might have influenced the market performance of related chip companies.

【Electric Vehicles, Weight Loss Drugs, and Oil Stocks Performance】

In the electric vehicle sector, Tesla's stock price remained under pressure, dropping 3.25%, with domestic newcomers like Li Auto, NIO, and XPeng also declining. In contrast, weight loss drug stocks performed relatively well, with mixed movements in the stock prices of Eli Lilly, Novo Nordisk, and AstraZeneca, while Biogen and Viking Therapeutics saw significant gains. Oil stocks generally rose, led by ExxonMobil and Occidental Petroleum, linked to recent increased volatility in the crude oil market and concerns about future supply risks.

【Other Sector Performance】

Digital currency stocks generally declined, with significant drops in Coinbase Global and MicroStrategy, reflecting the impact of Bitcoin price volatility on related stocks. Among meme stocks, AMC Entertainment saw a slight rise, while GameStop fell. Gold stocks broadly rose, with Barrick Gold and Newmont performing well, indicating investor preference for safe-haven assets. Retail stocks showed divergence, with Walmart and Costco declining, while Target and Dollar General saw slight increases. Bank stocks also diverged, with JPMorgan Chase and Citigroup remaining stable or slightly up, while Wells Fargo and Goldman Sachs declined.

【Investor Advice】

Investors should remain cautious in the current market environment, keeping an eye on potential risk factors and uncertainties, especially in the technology and electric vehicle sectors. Meanwhile, consider the safe-haven opportunities in the oil and gold sectors. For investments in leading tech giants, closely monitor company fundamentals and industry trends, particularly developments in regulatory and legal matters.