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Trending Sectors | Tech, AI, EVs, and Oil Stocks Show Mixed Performance Amid Rising Gold and Retail Shares

AInvestTuesday, Aug 20, 2024 5:31 pm ET
2min read
【Major U.S. Stock Indices】

On August 19, Eastern Time, the three major indices collectively closed higher. The S&P 500 index rose 0.97% to 5608.25 points, the Dow Jones index increased 0.58% to 40896.53 points, and the Nasdaq index climbed 1.39% to 17876.77 points. This upward trend was mainly driven by the recovery in market confidence, with investors returning to the stock market. Despite underperformance in certain sectors, the overall market sentiment remained positive.

【Performance of Leading Tech】

The performance of the seven tech giants in the U.S. market was mixed. Microsoft rose 0.78%, announcing a CAD 0.10 dividend for its open-ended index fund and updated its service agreement, emphasizing that AI tools are only for assistance. Apple increased 0.27%, with rumors suggesting its next event will be held on September 10, and the India-made iPhone Pro series is expected to debut globally. Nvidia fell 2.12% despite multiple major banks being bullish on its Q2 performance, as there were concerns of overbuying. Amazon rose 0.37%, with its gaming division collaborating with Glowmade on a new game, and Waymo's Robotaxi business rapidly expanding. Google A climbed 0.31%, as Alphabet's Waymo service doubled its passenger count and secured two renewable energy project agreements. Meta fell 0.48%, with executives planning to sell some shares. Tesla dropped 0.73%, with the EU planning to reduce tariffs on China-made Tesla cars to 9%, but market sentiment remained cautious.

【AI and Semiconductor Sector】

The AI and semiconductor sector performed weakly overall. Nvidia dropped 2.12%, with a market cap reaching $3.13 trillion, despite optimism from earnings and Jackson Hole boosting the stock market, as concerns of overbuying persisted. SMIC fell 2.04%, Arm Holdings dropped 1.78%, and Micron Technology decreased 0.59%. In AI PC stocks, Nvidia fell 2.12%, AMD rose 0.72%, Qualcomm fell 1.23%, Intel dropped 2.46%, and Micron Technology decreased 0.59%. In chip manufacturing, TSMC fell 1.94%, and Intel dropped 2.46%. In chip equipment and materials, ASML fell 0.75%, Applied Materials dropped 2.27%, and Lam Research fell 2.09%. In chip design, Broadcom fell 1.05%, Synopsys dropped 0.21%, Texas Instruments rose 0.94%, and Arm Holdings fell 1.78%.

【Electric Vehicle, Weight Loss Drugs, and Oil Stocks】

In the electric vehicle sector, Tesla fell 0.73%, with its market cap down to $706.313 billion. Domestic new energy vehicle companies saw widespread declines: Li Auto fell 5.40%, Nio dropped 5.41%, XPeng fell 5.97%, and Zeekr dropped 8.26%. Traditional automakers also weakened, with Toyota falling 1.28%, General Motors rising 0.48%, and Ford dropping 0.37%.Weight loss drug stocks showed mixed performance. Eli Lilly rose 3.08%, Novo Nordisk increased 0.38%, AstraZeneca rose 0.41%, Amgen increased 0.18%, GlaxoSmithKline rose 0.19%, Biogen fell 0.28%, and Viking Therapeutics dropped 0.74%.Oil stocks mostly declined, with ExxonMobil falling 3.33%, Occidental Petroleum dropping 2.13%, and Chevron decreasing 1.46%.Cryptocurrency-related stocks mostly fell, with Coinbase Global dropping 3.53%, MicroStrategy falling 1.23%, Riot Platforms decreasing 0.12%, and Marathon Digital falling 0.12%.Meme stocks mostly fell, with AMC Entertainment dropping 0.20% and GameStop falling 1.68%.

【Gold, Retail, Banking, and Vaccine Stocks】

Gold stocks mostly rose, with LBMA Gold Price PM increasing 0.37%, Barrick Gold rising 0.99%, Newmont rising 0.51%, and Franco-Nevada increasing 1.24%.Retail stocks were mixed, with Walmart rising 1.11%, Costco increasing 0.44%, Home Depot rising 1.16%, Target falling 0.21%, Dollar General dropping 0.41%, and Dollar Tree falling 1.31%.Bank stocks mostly fell, with JPMorgan Chase falling 0.43%, Bank of America dropping 2.47%, Wells Fargo decreasing 0.53%, Morgan Stanley falling 0.95%, Goldman Sachs dropping 1.45%, and Citigroup falling 1.16%.Vaccine stocks were mixed, with Pfizer rising 0.35%, Moderna falling 3.36%, BioNTech dropping 1.56%, and Novavax falling 6.33%.

【Other Noteworthy Sectors and Stocks】

Other noteworthy stocks include retail giants Home Depot, Costco, and Walmart. Home Depot rose 1.16% despite reporting losses, Costco introduced a "doomsday bucket" product that can last 25 years, pushing its stock up 0.44%, and Walmart's earnings indicated stable consumer health, leading to a 1.11% increase in its stock.

【Overall Review and Investment Advice】

The U.S. stock market overall showed positive performance, despite underperformance in certain sectors, reflecting a recovery in market confidence. Investors should remain cautiously optimistic in the current market environment, focusing on the short-term volatility in tech and semiconductor stocks, while also considering investment opportunities in gold and certain retail stocks. It is recommended to diversify investments and monitor market dynamics and company fundamentals to navigate potential market fluctuations.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.