Trending Sectors | Oil Surges, Tech & EVs Tumble, Vaccine Stocks Rise Amid Year-End Market Adjustments

【Major U.S. Stock Indices】

The three major U.S. stock indices showed mixed results. The S&P 500 index slightly declined by 0.1%, the Dow Jones Industrial Average rose by 0.22%, and the Nasdaq index fell by 0.33%. The overall market volatility indicates cautious sentiment among investors as the year-end approaches, particularly with the weak performance of tech stocks putting pressure on the Nasdaq.

【Performance of Leading Tech】

The seven tech giants generally declined, with Microsoft down 0.78%, Apple down 0.71%, Amazon down 0.86%, Google A down 1.01%, Meta down 0.97%, and Tesla dropping significantly by 3.25%. Nvidia led the decline among the tech giants, with a drop of 2.33%. Despite Nvidia's leadership in the AI sector drawing attention, concerns about its valuation and the volatility in the global chip market continue to exert pressure. For Apple, while there are plans to open Apple TV+ streaming services to attract users, negative news about the suspension of some models' sales in the EU weighed on its stock price.

【AI and Chip Sector】

The AI and chip sectors performed poorly overall. Nvidia fell by 2.33%, while related stocks such as SMCI and Arm Holdings dropped by 0.65% and 2.03%, respectively. Notably, although Nvidia was chosen by Wedbush as the AI winner for 2025, concerns over its short-term profitability and chip market demand have pressured its stock price. Additionally, new product launches in the AI chip field, such as Google's quantum computing chip Willow, have sparked market interest, but their commercialization prospects remain to be seen.

【Electric Vehicle Sector】

The electric vehicle sector saw significant declines, with Tesla leading the drop by 3.25%, marking four consecutive days of losses, bringing its market value down to $1,296.35 billion. Tesla's continued decline reflects market concerns over its slowing growth, particularly with weak fourth-quarter delivery expectations. Domestic newcomers like Li Auto, NIO, and XPeng also experienced varying degrees of decline, while Zeekr rose slightly by 0.39%, indicating Tesla's leadership position is being challenged.

【Oil Stocks】

Oil stocks performed strongly, with ExxonMobil rising by 1.78%, Occidental Petroleum up 1.98%, and Chevron gaining 1.29%. The rise in oil prices was mainly driven by a cold snap in the U.S., pushing crude prices higher. Moreover, market attention on Trump’s relations with Iran continues to support oil prices.

【Cryptocurrency-Related Stocks】

Cryptocurrency-related stocks generally fell, with Coinbase Global down 2.84% and Microstrategy down 4.40%. Despite a rebound in Bitcoin prices, concerns over cryptocurrency regulation and bubble risks caused related stocks to remain under pressure.

【Other Sector Performance】

Weight loss drug-related stocks saw mixed results, with Eli Lilly slightly declining, whereas Novo Nordisk and Amgen performed better. Vaccine stocks rose across the board, with Moderna up 5.59% due to positive vaccine-related news boosting market confidence.

【Investor Advice】

Overall, the market's adjustment towards the end of the year reflects sensitivity to macroeconomic and geopolitical factors. As investors strategize for 2025, attention should be paid to the reasonable valuation of tech stocks and the volatility in the oil and cryptocurrency markets. Balancing long-term opportunities in the AI and renewable energy sectors, investors should appropriately adjust their portfolios to address potential risks and opportunities.