Trending Sectors | Tech and Chips Surge, Traditional Auto Gains, EVs and Weight-Loss Stocks Show Mixed Results

【Major U.S. Stock Indices】

The U.S. stock market showed positive performance, with all three major indices rising. The S&P 500 increased by 1.2%, the Dow Jones Industrial Average rose by 1.5%, and the tech-heavy Nasdaq climbed 1.7%. The market is not worried about the potential "hawkish cut" by the Federal Reserve and is instead looking forward to a potential "Santa Claus rally" by the end of the year. Optimism about Federal Reserve policy and confidence in future economic growth provided strong support for the market.

【Performance of Leading Tech】

The seven tech giants generally saw gains, with Microsoft being the exception, dipping slightly by 0.01%. Apple rose by 1.92%, benefiting from continued market anticipation of its hardware innovations. Nvidia surged 3.31%, driven by Morgan Stanley's positive outlook on artificial intelligence. Amazon was up 0.86% as analysts widely raised its target price, reflecting confidence in its e-commerce and cloud services. Google and Meta increased by 1.54% and decreased by 1.73%, respectively, with Meta facing advertising business challenges despite a target price raise. Tesla fell by 3.57% amid ongoing recall events, with the market remaining cautious about its short-term performance.

【AI and Chip Sector Performance】

In the AI sector, Nvidia shone with a 3.31% increase, bolstered by EU approval for its acquisition of AI startup Run:ai. SMCI and Qualcomm also rose by 0.88% and 1.65%, respectively. The overall chip manufacturing sector was positive, with TSMC gaining 1.32% due to an expected increase in market share. In chip equipment and materials, Applied Materials and Lam Research rose by 1.29% and 0.83%, while ASML fell by 0.64%. The market holds an optimistic view of long-term investment opportunities in the chip industry.

【EV and Traditional Auto Sector】

The electric vehicle sector showed mixed performance, with Tesla declining for three consecutive days, totaling a 12.35% drop. Chinese EV makers performed well, with NIO up 3.18%. Traditional automakers were strong, with Toyota and General Motors rising by 2.27% and 2.92%, respectively. The intensifying competition in the EV market and traditional automakers' transition strategies may be key reasons for their stock price increase.

【Other Key Sectors】

Weight-loss drug stocks were mixed, with Eli Lilly up 1.44% and Novo Nordisk down 17.82%. Oil stocks broadly increased, with Occidental Petroleum surging 3.90%, amid differing views on next year's oil prices. Gold stocks also performed well, with Newmont up 3.40%. In cryptocurrency-related stocks, MicroStrategy rose by 11.76%, reflecting market approval of its Bitcoin reserve strategy.

【Other Noteworthy Sectors】

In retail, Walmart fell by 1.24%, but Dollar Tree shone with a 5.60% increase. Bank stocks generally rose, with Morgan Stanley and Goldman Sachs up by 2.44% and 2.19%, respectively. Vaccine stocks were mixed, with Pfizer gaining 2.29% while Moderna fell by 0.58%.

【Summary and Recommendations】

Overall, the U.S. stock market showed positive performance driven by multiple favorable factors, especially the strong rebound in tech stocks, which bolstered market confidence. Investors should pay attention to Federal Reserve policy developments and their long-term impact on the market. Meanwhile, macroeconomic data and corporate earnings will remain important indicators of market trends. It is recommended that investors actively participate in the market in the short term while maintaining a focus on and assessment of fundamentals.