Trending Sectors | Tech and AI Surge, EV and Retail Struggle, Financials Under Pressure
Monday, Oct 21, 2024 5:31 pm ET
【Major U.S. Stock Indices】
The three major U.S. stock indices experienced slight gains. The S&P 500 rose 0.40% to 5864.67 points, the Dow Jones increased by 0.09% to 43275.91 points, and the Nasdaq saw a larger rise of 0.63%, closing at 18489.55 points. Overall, the strong performance of the tech sector drove the market upward.
【Performance of Leading Tech】
Among the seven major U.S. tech giants, Microsoft increased by 0.15%, Apple by 0.63%, Amazon by 0.04%, and Google A by 0.40%, while Meta and Tesla dropped by 0.23% and 0.84%, respectively. Microsoft's gain was partly due to its collaboration with OpenAI, with optimistic market sentiment regarding Azure's revenue growth. Apple was boosted by CEO Tim Cook's positive comments on products and better-than-expected market signals. Tesla's decline was linked to a lackluster Robotaxi event and cautious expectations for its upcoming earnings report.
【AI and Chip Sector】
The AI and chip sectors showed mixed performance. Nvidia rose significantly by 4.14% due to strong expectations for its AI chip demand, further boosted by its collaboration with Microsoft in AI. SMCI increased slightly by 1.14%, while Arm Holdings and Micron Technology fell by 0.44% and 1.86%, indicating weak demand for non-AI chips. Qualcomm released a new chip but saw a 1.12% drop in its stock price.
【Electric Vehicle Sector】
The electric vehicle sector was generally weak, with Tesla declining for the third consecutive day, reducing its market capitalization to $699.147 billion. Among domestic newcomers, XPeng rose against the trend by 3.15%, while Li Auto and Nio saw slight gains of 0.04% and a drop of 1.53%, respectively. Traditional automakers like Toyota and Ford also declined, reflecting market concerns about the economic outlook.
【Other Sector Performance】
Weight loss drug stocks generally fell, with companies like Eli Lilly and Novo Nordisk experiencing declines amid doubts about future sales growth. Oil stocks rose slightly, with ExxonMobil and Occidental Petroleum benefiting from stable oil prices. Digital currency stocks showed mixed results, with Coinbase dropping 2.95% and MicroStrategy rising 1.48%, highlighting uncertainty in the cryptocurrency market.
【Sectors to Watch】
Retail stocks showed clear divergence, with giants like Walmart and Target declining due to expectations of slowed consumer spending. Bank stocks generally fell, with significant declines in Goldman Sachs and Morgan Stanley, reflecting pressure on the financial sector. Vaccine stocks also slipped, with companies like Pfizer and Moderna under pressure.
【Investor Advice】
Overall, the tech sector, especially AI-related stocks, performed strongly and warrant consideration for increased holdings. Meanwhile, the weakness in the financial and retail sectors might offer buying opportunities at lower prices. Investors should closely watch the upcoming Tesla earnings report and changes in consumer spending expectations to adjust their portfolios.
The three major U.S. stock indices experienced slight gains. The S&P 500 rose 0.40% to 5864.67 points, the Dow Jones increased by 0.09% to 43275.91 points, and the Nasdaq saw a larger rise of 0.63%, closing at 18489.55 points. Overall, the strong performance of the tech sector drove the market upward.
【Performance of Leading Tech】
Among the seven major U.S. tech giants, Microsoft increased by 0.15%, Apple by 0.63%, Amazon by 0.04%, and Google A by 0.40%, while Meta and Tesla dropped by 0.23% and 0.84%, respectively. Microsoft's gain was partly due to its collaboration with OpenAI, with optimistic market sentiment regarding Azure's revenue growth. Apple was boosted by CEO Tim Cook's positive comments on products and better-than-expected market signals. Tesla's decline was linked to a lackluster Robotaxi event and cautious expectations for its upcoming earnings report.
【AI and Chip Sector】
The AI and chip sectors showed mixed performance. Nvidia rose significantly by 4.14% due to strong expectations for its AI chip demand, further boosted by its collaboration with Microsoft in AI. SMCI increased slightly by 1.14%, while Arm Holdings and Micron Technology fell by 0.44% and 1.86%, indicating weak demand for non-AI chips. Qualcomm released a new chip but saw a 1.12% drop in its stock price.
【Electric Vehicle Sector】
The electric vehicle sector was generally weak, with Tesla declining for the third consecutive day, reducing its market capitalization to $699.147 billion. Among domestic newcomers, XPeng rose against the trend by 3.15%, while Li Auto and Nio saw slight gains of 0.04% and a drop of 1.53%, respectively. Traditional automakers like Toyota and Ford also declined, reflecting market concerns about the economic outlook.
【Other Sector Performance】
Weight loss drug stocks generally fell, with companies like Eli Lilly and Novo Nordisk experiencing declines amid doubts about future sales growth. Oil stocks rose slightly, with ExxonMobil and Occidental Petroleum benefiting from stable oil prices. Digital currency stocks showed mixed results, with Coinbase dropping 2.95% and MicroStrategy rising 1.48%, highlighting uncertainty in the cryptocurrency market.
【Sectors to Watch】
Retail stocks showed clear divergence, with giants like Walmart and Target declining due to expectations of slowed consumer spending. Bank stocks generally fell, with significant declines in Goldman Sachs and Morgan Stanley, reflecting pressure on the financial sector. Vaccine stocks also slipped, with companies like Pfizer and Moderna under pressure.
【Investor Advice】
Overall, the tech sector, especially AI-related stocks, performed strongly and warrant consideration for increased holdings. Meanwhile, the weakness in the financial and retail sectors might offer buying opportunities at lower prices. Investors should closely watch the upcoming Tesla earnings report and changes in consumer spending expectations to adjust their portfolios.