Trending Sectors | Tech, AI Chips, EVs, and Healthcare Lead the Charge, Oil and Gold Diverge

【Major U.S. Stock Indices】

The U.S. stock market showed strong performance with the S&P 500 up 0.97%, the NASDAQ up 1.39%, and the Dow Jones Industrial Average up 0.58%. Positive market sentiment prevailed as investors' concerns about economic prospects eased, driven particularly by strong performance in tech stocks.

【Performance of Leading Tech】

Among the seven major tech giants, Microsoft rose 0.73%, Apple slightly fell 0.07%, and Nvidia had the most significant gain of 4.35%. Amazon increased by 0.66%, Alphabet's Class A shares rose by 2.28%, Meta went up 0.35%, and Tesla surged by 3.05%. In news, both Microsoft and Apple saw high options trading volumes, reflecting strong investor interest in their future trends. Apple rose for seven consecutive days, benefiting from Morgan Stanley's upward revision of iPhone sales forecasts. Nvidia's strong performance was bolstered by its leading position in AI chips and Goldman Sachs' positive earnings outlook for 2025. Amazon's acquisition of Xperi's subsidiary Perceive furthered its strategic layout in edge AI technology, contributing to its stock price rise. Alphabet was picked by analysts as an excellent large-cap stock for 2024, backing its optimistic outlook. Meta continued to enhance platform activity by introducing new features to attract digital creators and businesses. Tesla saw a significant stock price increase due to the exposure of its new-generation Roadster and potential policy support.

【AI and Semiconductor Sector Gains】

The AI and semiconductor sectors continued to perform strongly, particularly Nvidia and AMD. Nvidia saw a six-day upward streak, accumulating a gain of 24.11%, bringing its market cap to $3.20 trillion. Strong demand for its AI chips and Goldman Sachs' positive earnings outlook fueled the rapid stock price increase. AMD's trading data indicated active involvement in the AI chip business, competing with Nvidia. SMIC released a key investor update and announced an acquisition deal with ZT Systems, demonstrating enhanced AI hardware manufacturing capabilities. TSMC announced the groundbreaking of its first wafer plant in Europe, reinforcing its leadership in global chip manufacturing.

【Electric Vehicle Sector Performance】

The electric vehicle sector performed excellently overall. Tesla rose for three consecutive days, with a cumulative gain of 10.60%, and its market cap recovered to $711.942 billion. Domestic players like Li Auto, NIO, and XPeng also performed well, with gains of 4.58%, 3.04%, and 3.75%, respectively. Traditional automakers like Toyota, General Motors, and Ford also showed strength, indicating market interest in both electric and traditional vehicles.

【Weight Loss Drug Sector Mixed Performance】

In the weight loss drug sector, Eli Lilly fell 0.12%, Novo Nordisk rose 0.23%, AstraZeneca increased 0.44%, Amgen rose 2.03%, GlaxoSmithKline increased 0.57%, and Biogen rose 2.06%. Viking Therapeutics saw a significant rise of 17.49%. This indicates continued strong demand for weight loss drugs, with emerging companies like Viking Therapeutics showing particularly notable performance.

【Oil and Gold Stocks Diverge】

In the oil sector, ExxonMobil slightly rose 0.30%, while Occidental Petroleum and Chevron fell 0.38% and 0.30%, respectively. Oil prices remained stagnant due to demand concerns. In the gold sector, Barrick Gold rose 2.54%, Newmont increased 1.95%, and Franco-Nevada rose 1.22%, indicating continued safe-haven sentiment in the gold market.

【Digital Currency and Meme Stocks Performance】

Among digital currency-related stocks, Coinbase Global fell 0.41%, while Microstrategy, Riot Platforms, and Marathon Digital rose 1.74%, 0.75%, and 1.23%, respectively. Meme stocks like AMC Entertainment and GameStop both rose, gaining 0.40% and 1.16%, respectively.

【Retail and Banking Stocks Mostly Up】

In retail stocks, Walmart rose 0.37%, Costco increased 0.20%, Home Depot rose 0.28%, Target increased 0.41%, and Dollar Tree rose 1.75%. Banking stocks mostly rose, with JPMorgan Chase up 0.69%, Bank of America up 0.84%, Wells Fargo up 2.02%, Morgan Stanley up 0.31%, Goldman Sachs up 0.08%, and Citigroup up 1.03%.

【Vaccine Stocks Rise】

In the vaccine sector, Pfizer rose 1.77%, Moderna increased 3.59%, BioNTech rose 5.56%, and Novavax surged 7.25%. Novavax's strong performance particularly highlighted market optimism about its vaccine candidates.

【Investment Recommendations】

Given the above market performance, investors may consider focusing on tech stocks and AI chip sectors, especially leading companies like Nvidia and AMD. The electric vehicle sector and weight loss drug sector also warrant continued attention. While oil and gold stocks retain their safe-haven appeal, changes in market demand should be monitored. For retail and banking stocks, investors might consider appropriate allocation when market sentiment stabilizes. The strong performance of vaccine stocks indicates long-term investment potential in the healthcare sector. Overall, market sentiment is positive, but investors should remain vigilant about macroeconomic and policy changes that may impact the market.