Trending Sectors | Tech and EV Surge: AI, Semiconductors, and Electric Vehicles Lead U.S. Stock Sector Gains
Friday, Sep 20, 2024 5:30 pm ET
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【Major U.S. Stock Indices】
The major U.S. stock indices showed strong performance, with the S&P 500 rising 1.70% to 5713.64, marking the 39th record high of the year. The Dow Jones increased 1.26% to 42025.19, continuing its record-setting trend. The Nasdaq was particularly impressive, up 2.51% to 18013.98. The market welcomed the Federal Reserve's interest rate cut, viewing it as new momentum for the stock market.
【Performance of Leading Tech】
The top seven tech stocks all rose: Microsoft up 1.83%, Apple up 3.71%, Nvidia up 3.97%, Amazon up 1.85%, Alphabet A up 1.46%, Meta up 3.93%, and Tesla up 7.36%. Microsoft's strong performance was partly driven by active trading in its options market, while Apple drew investor attention due to iPhone 16 demand. Tesla surged on progress in its Robotaxi project. JPMorgan's rating suggests Apple's stock drop would be a buying opportunity.
【AI and Semiconductor Sector】
The AI and semiconductor sectors stood out, with Nvidia up 3.97% and its market cap reaching $2.85 trillion. Chip stocks generally rose, with TSMC up 5.34% and ASML up 5.12%. Rumors of OpenAI completing a $6.5 billion funding round boosted the AI sector. Intel gained 1.78% on potential acquisition talks with Qualcomm.
【Electric Vehicle Sector】
The electric vehicle sector performed strongly, with Tesla up 7.36%. Domestic upstarts like NIO, XPeng, and Zeekr rose 7.57%, 8.68%, and 8.51%, respectively. Tesla's upcoming Robotaxi launch drew high expectations, while NIO garnered attention due to new model launches and a positive JPMorgan rating.
【Oil and Gold Stocks】
Oil stocks edged up, with ExxonMobil rising 1.24%. The U.S. Department of Energy's investment plans and a reduction in global oil inventories supported the sector. Gold stocks rose, with LBMA gold price PM up 1.55%, driven by optimistic demand expectations following the Federal Reserve's rate cut.
【Crypto and Meme Stocks】
Crypto-related stocks generally rose, with Microstrategy up 9.04%, benefiting from Bitcoin's strong performance. Meme stocks mostly fell, with AMC down 1.46%, as market sentiment toward the sector remained tepid.
【Other Sectors】
Retail stocks were mixed, with Target up 1.88% and Walmart down 1.25%. Banking stocks rose, with Goldman Sachs up 3.97%, driven by a rebound in the financial sector. Vaccine stocks mostly fell, with Moderna down 2.63%, reflecting ongoing concerns over vaccine demand.
【Investor Advice】
Given the positive market reaction to the Federal Reserve's rate cut, investors may focus on opportunities in the tech and semiconductor sectors while closely monitoring changes in macroeconomic indicators. Gold, as a safe-haven asset, also warrants attention. In the context of sector rotation, investors should remain flexible and adjust their portfolios accordingly.
The major U.S. stock indices showed strong performance, with the S&P 500 rising 1.70% to 5713.64, marking the 39th record high of the year. The Dow Jones increased 1.26% to 42025.19, continuing its record-setting trend. The Nasdaq was particularly impressive, up 2.51% to 18013.98. The market welcomed the Federal Reserve's interest rate cut, viewing it as new momentum for the stock market.
【Performance of Leading Tech】
The top seven tech stocks all rose: Microsoft up 1.83%, Apple up 3.71%, Nvidia up 3.97%, Amazon up 1.85%, Alphabet A up 1.46%, Meta up 3.93%, and Tesla up 7.36%. Microsoft's strong performance was partly driven by active trading in its options market, while Apple drew investor attention due to iPhone 16 demand. Tesla surged on progress in its Robotaxi project. JPMorgan's rating suggests Apple's stock drop would be a buying opportunity.
【AI and Semiconductor Sector】
The AI and semiconductor sectors stood out, with Nvidia up 3.97% and its market cap reaching $2.85 trillion. Chip stocks generally rose, with TSMC up 5.34% and ASML up 5.12%. Rumors of OpenAI completing a $6.5 billion funding round boosted the AI sector. Intel gained 1.78% on potential acquisition talks with Qualcomm.
【Electric Vehicle Sector】
The electric vehicle sector performed strongly, with Tesla up 7.36%. Domestic upstarts like NIO, XPeng, and Zeekr rose 7.57%, 8.68%, and 8.51%, respectively. Tesla's upcoming Robotaxi launch drew high expectations, while NIO garnered attention due to new model launches and a positive JPMorgan rating.
【Oil and Gold Stocks】
Oil stocks edged up, with ExxonMobil rising 1.24%. The U.S. Department of Energy's investment plans and a reduction in global oil inventories supported the sector. Gold stocks rose, with LBMA gold price PM up 1.55%, driven by optimistic demand expectations following the Federal Reserve's rate cut.
【Crypto and Meme Stocks】
Crypto-related stocks generally rose, with Microstrategy up 9.04%, benefiting from Bitcoin's strong performance. Meme stocks mostly fell, with AMC down 1.46%, as market sentiment toward the sector remained tepid.
【Other Sectors】
Retail stocks were mixed, with Target up 1.88% and Walmart down 1.25%. Banking stocks rose, with Goldman Sachs up 3.97%, driven by a rebound in the financial sector. Vaccine stocks mostly fell, with Moderna down 2.63%, reflecting ongoing concerns over vaccine demand.
【Investor Advice】
Given the positive market reaction to the Federal Reserve's rate cut, investors may focus on opportunities in the tech and semiconductor sectors while closely monitoring changes in macroeconomic indicators. Gold, as a safe-haven asset, also warrants attention. In the context of sector rotation, investors should remain flexible and adjust their portfolios accordingly.