Trending Sectors | Tech, AI, EVs, and Gold Shine as Investors Seek Opportunities in Diverse US Stock Sectors

【Major U.S. Stock Indices】

The U.S. stock market closed strongly, with all three major indices ending higher. The S&P 500 rose by 1.07% to 5554.13 points; the Dow Jones Industrial Average gained 0.31% to 40861.71 points; and the Nasdaq increased by 2.17% to 17395.53 points. Overall market sentiment was positive, driven by strong performance in tech stocks and investors' optimistic outlook on the economy.

【Performance of Leading Tech】

Tech giants generally performed well. Microsoft rose 0.94%, despite announcing layoffs of 650 employees in its Xbox gaming division, boosted by the news of adding OpenAI's o1 preview and o1-mini to Azure and GitHub. Apple edged up 0.05%, benefiting from FDA approval of its AirPods as hearing aids. Amazon climbed 1.34%, with plans to invest $1.8 billion in expanding its AWS data center operations in Brazil. Google A surged 2.34%, maintaining a buy rating from Goldman Sachs despite facing an EU investigation into its large model data privacy. Meta gained 2.69%, with WhatsApp launching Meta certification and custom messaging features in India, enhancing investor confidence. Tesla rose 0.74% due to strong sales in the Chinese market. Nvidia was the standout performer, up 1.91%, driven by strong demand for its next-generation Blackwell AI chips.

【AI and Chip Sector Performance】

The AI and chip sectors showed mixed results. Nvidia rose 1.91%, marking its fourth consecutive day of gains, with a market cap reaching $2.92 trillion. CEO Jensen Huang's discussions at the White House with other tech leaders on AI infrastructure needs further boosted confidence in its prospects. SMCI fell 0.73%, while Micron Technology dropped 3.79%, weighed down by a death cross in its stock and analysts' forecasts of slowing growth. Qualcomm declined 0.95%, and Intel fell 1.43%. In the chip manufacturing sector, TSMC gained 0.70%, with its Q3 revenue expected to beat forecasts. In chip equipment and materials, ASML and Applied Materials had lackluster performances, down 0.00% and 1.47%, respectively.

【Electric Vehicle Sector Performance】

In the electric vehicle sector, Tesla rose 0.74%, continuing to lead the market. However, Chinese EV startups generally declined, with Li Auto falling 3.58%, Nio dropping 5.71%, and XPeng Motors down 5.69%. Traditional automakers performed better, with Toyota up 0.85%, General Motors rising 3.25%, and Ford up 1.63%.

【Weight Loss Drug Sector Performance】

Weight loss drug stocks were mostly up. Eli Lilly closed up 1.54%, Novo Nordisk rose 1.07%, and AstraZeneca fell 1.95%, mainly due to disappointing progress in its drug development. Amgen edged up 0.02%, GlaxoSmithKline dropped 1.51%, Biogen decreased 0.60%, and Viking Therapeutics surged 3.26%.

【Oil Stock Performance】

Oil stocks performed strongly overall. ExxonMobil rose 1.38%, as its Louisiana refinery plans to increase production post-storm. Occidental Petroleum climbed 0.65%, and Chevron gained 0.96%, with news of offshore platform staff redeployments boosting its stock.

【Digital Currency Stocks Performance】

Digital currency stocks showed mixed results. Coinbase Global surged 3.65% following the launch of its new ERC20 token, Coinbase Wrapped BTC (CbBTC). MicroStrategy rose 1.15%, Riot Platforms fell 0.85%, and MARA Holdings edged up 0.06%.

【Meme Stock Performance】

Meme stocks generally declined. AMC Entertainment dropped 1.01%, and GameStop fell 1.16%, as speculative interest in these stocks waned.

【Gold Stock Performance】

Gold stocks saw broad gains, benefiting from gold prices hitting a historic high. Barrick Gold rose 4.15%, Newmont gained 4.22%, and Franco-Nevada increased 3.00%. Analysts generally believe that multiple favorable factors will continue to drive gold prices higher.

【Retail Stock Performance】

Retail stocks generally rose. Walmart climbed 1.04%, Costco gained 1.62%, Home Depot rose 1.06%, Target increased 0.78%, Dollar General surged 3.28%, and Dollar Tree was up 1.97%.

【Bank Stock Performance】

Bank stocks were mixed. JPMorgan Chase fell 0.30%, Bank of America dropped 0.56%, and Wells Fargo plunged 4.02%, mainly due to its formal agreement with the Office of the Comptroller of the Currency (OCC). Goldman Sachs gained 0.61%, and Citigroup edged up 0.05%.

【Vaccine Stock Performance】

Vaccine stocks showed significant divergence. Pfizer fell 1.69%, with Moderna dropping the most at 12.36%, mainly due to disappointing sales forecasts for 2025. BioNTech rose 5.77%, and Novavax fell 3.01%.

【Other Noteworthy Sectors】

In the financial sector, BGC Group stood out, planning to trade futures on a new exchange. In consumer stocks, Petlibro received a positive market response for selling innovative pet tech products at Target stores and online. Overall, it is evident that tech stocks, especially those related to AI, remain the primary drivers of the current market. Investors may focus on leading companies in these sectors while keeping an eye on market sentiment to allocate assets wisely and avoid over-concentration. For traditional industry investors, stable oil and gold stocks could be good hedging options.