Trending Sectors | Tech and AI Slump, EVs and Oil Surge: A Guide to Potential Opportunities

【Major U.S. Stock Indices】

In recent trading, the major U.S. stock indices showed mixed performances. The S&P 500 fell 1.46%, closing at 6012.28 points; the Dow Jones Industrial Average rose 0.65%, closing at 44713.58 points; and the Nasdaq dropped 3.07%, closing at 19341.83 points. This divergence in performance reflects changes in market sentiment across different sectors, particularly the weakness in tech stocks weighing on the Nasdaq, while the Dow was supported by relatively stable performance in traditional industry stocks.

【Performance of Leading Tech】

The seven major U.S. tech giants showed significant divergence. Microsoft fell 2.14%, while Apple rose against the trend by 3.25%, benefiting from positive market expectations regarding its new technology and board adjustments. Nvidia plummeted 16.86% due to the impact of DeepSeek technology, marking its largest single-day market value loss. Amazon saw a slight increase of 0.30%, Google A dropped 4.20%, and Meta rose 1.91% due to its recent active moves in content creation. Tesla dropped 2.32%, continuing to be pressured by challenges in its AI sector.

【AI and Chip Sector Decline】

The AI and chip sectors suffered heavy losses due to the impact of DeepSeek technology. Nvidia led the decline among related stocks, with a drop of 16.86%, while SMCI (ticker: SMCI) and Micron Technology, among other chip-related stocks, also saw significant declines. This indicates market concerns over the potential impact of AI ASIC technology. Additionally, the semiconductor manufacturing and equipment sectors were also under pressure, with significant declines in companies like TSMC, ASML, and Applied Materials.

【Diverging Performance in Electric Vehicle Sector】

In the electric vehicle sector, Tesla fell for the fifth consecutive day, with its market value further declining. In contrast, domestic new entrants such as Li Auto and XPeng performed relatively well, rising by 1.72% and 2.72%, respectively. Traditional automakers showed strong performance, with General Motors and Ford both recording significant gains, indicating market confidence in their transition to the electric vehicle sector.

【Performance of Other Sectors】

Oil stocks generally rose, benefiting from the rising international oil prices. Digital currency stocks, however, saw broad declines, with Coinbase and Riot Platforms experiencing the most significant drops. Meme stocks also faced declines, with AMC Entertainment and GameStop both plummeting. Additionally, gold stocks saw slight declines, while retail stocks rose overall, with companies like Walmart and Target performing exceptionally well. Bank stocks were mixed, with JPMorgan Chase slightly up, while Morgan Stanley and Goldman Sachs saw slight declines. Vaccine stocks performed strongly, with companies like Pfizer and Moderna seeing gains.

【Investor Advice】

In the current market environment, investors should be cautious of further adjustment risks in tech and chip stocks, particularly those impacted by AI technology shifts. Defensive stocks in traditional industries and retail stocks might offer stable returns. Despite short-term market volatility, long-term investors can focus on companies with innovation capabilities and transformation potential. Strategically, it is advisable to invest in high-quality companies during dips and closely monitor the impact of macroeconomic policies on the market.