Trending Sectors | Tech and AI Surge Amid EV Struggles; Oil and Auto Face Pressure
Tuesday, Oct 29, 2024 5:30 pm ET
1min read 【Major U.S. Stock Indices】
The major U.S. stock indices collectively closed higher. The S&P 500 rose 0.27% to 5823.52 points, the Dow Jones increased 0.65% to 42387.57 points, and the Nasdaq gained 0.26% to 18567.19 points. This performance reflects market optimism ahead of the upcoming earnings season, particularly driven by tech stocks, showing investors' strong confidence in the tech sector.
【Performance of Leading Tech】
The seven major U.S. tech giants generally rose: Microsoft was up 1.26%, Apple increased 0.12%, Amazon gained 1.30%, Alphabet, Google's parent company, rose 1.78%, and Meta was up 2.62%. Tesla, however, fell 1.14%. Notably, Microsoft's upcoming earnings report, focusing on its intelligent cloud business, and Apple's AI features have garnered market attention. Meta’s push into AI search engines has also heightened expectations for its advertising growth. Tesla faced increased competition in the electric vehicle sector and market volatility.
【AI and Chip Sector Performance】
The AI sector showed strong performance, with Nvidia rising 0.52%, leading related stocks, particularly those collaborating with OpenAI, such as Broadcom and TSMC, which were actively sought after by the market. In the chip sector, SMCI rose 2.93%, and Micron Technology increased 1.68%, indicating continued market interest in AI and high-performance computing demand. Meanwhile, Intel showed weakness due to strategic and manufacturing challenges.
【EV and Traditional Automotive Sector】
The EV sector generally declined, with Tesla falling for the second consecutive day, totaling a 3.59% drop. Domestic newcomers like Li Auto, Nio, and XPeng also suffered, dropping 2.44%, 3.61%, and 4.37%, respectively. Tesla is facing intensified market competition, while traditional automakers like Ford dropped significantly by 8.44% due to lowered profit forecasts, highlighting the overall industry pressure.
【Oil, Weight Loss Drugs, and Other Sectors】
Oil stocks generally declined, with ExxonMobil and Chevron falling 1.36% and 1.34%, respectively, pressured by international oil price fluctuations. Weight loss drug stocks showed mixed performance, with Novo Nordisk and AstraZeneca slightly down, while Eli Lilly and Biogen remained relatively strong. In gold stocks, Barrick Gold rose 1.50%, but Newmont fell 1.16%.
【Digital Currency and Meme Stock Performance】
Digital currency stocks generally rose, with Coinbase up 1.65%, reflecting market optimism as Bitcoin prices surpassed $70,000. Meme stocks were mixed, with AMC Entertainment flat and GameStop slightly down 0.22%.
【Market Summary and Investment Advice】
Overall, tech and AI-related sectors continue to be market highlights, while traditional industries like oil and automotive face significant pressure. Investors should focus on the upcoming tech giant earnings to adjust portfolios. Additionally, the digital currency market remains volatile, requiring caution. It is advised to focus on high-growth tech stocks while also considering the cyclical risks of traditional industries.
The major U.S. stock indices collectively closed higher. The S&P 500 rose 0.27% to 5823.52 points, the Dow Jones increased 0.65% to 42387.57 points, and the Nasdaq gained 0.26% to 18567.19 points. This performance reflects market optimism ahead of the upcoming earnings season, particularly driven by tech stocks, showing investors' strong confidence in the tech sector.
【Performance of Leading Tech】
The seven major U.S. tech giants generally rose: Microsoft was up 1.26%, Apple increased 0.12%, Amazon gained 1.30%, Alphabet, Google's parent company, rose 1.78%, and Meta was up 2.62%. Tesla, however, fell 1.14%. Notably, Microsoft's upcoming earnings report, focusing on its intelligent cloud business, and Apple's AI features have garnered market attention. Meta’s push into AI search engines has also heightened expectations for its advertising growth. Tesla faced increased competition in the electric vehicle sector and market volatility.
【AI and Chip Sector Performance】
The AI sector showed strong performance, with Nvidia rising 0.52%, leading related stocks, particularly those collaborating with OpenAI, such as Broadcom and TSMC, which were actively sought after by the market. In the chip sector, SMCI rose 2.93%, and Micron Technology increased 1.68%, indicating continued market interest in AI and high-performance computing demand. Meanwhile, Intel showed weakness due to strategic and manufacturing challenges.
【EV and Traditional Automotive Sector】
The EV sector generally declined, with Tesla falling for the second consecutive day, totaling a 3.59% drop. Domestic newcomers like Li Auto, Nio, and XPeng also suffered, dropping 2.44%, 3.61%, and 4.37%, respectively. Tesla is facing intensified market competition, while traditional automakers like Ford dropped significantly by 8.44% due to lowered profit forecasts, highlighting the overall industry pressure.
【Oil, Weight Loss Drugs, and Other Sectors】
Oil stocks generally declined, with ExxonMobil and Chevron falling 1.36% and 1.34%, respectively, pressured by international oil price fluctuations. Weight loss drug stocks showed mixed performance, with Novo Nordisk and AstraZeneca slightly down, while Eli Lilly and Biogen remained relatively strong. In gold stocks, Barrick Gold rose 1.50%, but Newmont fell 1.16%.
【Digital Currency and Meme Stock Performance】
Digital currency stocks generally rose, with Coinbase up 1.65%, reflecting market optimism as Bitcoin prices surpassed $70,000. Meme stocks were mixed, with AMC Entertainment flat and GameStop slightly down 0.22%.
【Market Summary and Investment Advice】
Overall, tech and AI-related sectors continue to be market highlights, while traditional industries like oil and automotive face significant pressure. Investors should focus on the upcoming tech giant earnings to adjust portfolios. Additionally, the digital currency market remains volatile, requiring caution. It is advised to focus on high-growth tech stocks while also considering the cyclical risks of traditional industries.
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.
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