Trending Sectors | Tech, EV, and Oil Stocks in Focus Amid Broader Declines

【Major U.S. Stock Indices】

The three major U.S. stock indices fell across the board. The Dow Jones Industrial Average declined by 0.43%, closing at 34,426.96 points; the S&P 500 fell by 0.89%, closing at 4,370.36 points; and the Nasdaq Composite dropped by 1.67%, closing at 13,223.99 points. Investors were cautious ahead of Federal Reserve Chairman Jerome Powell's speech at Jackson Hole, leading to a broad decline in tech stocks, which weighed heavily on the overall market performance.

【Performance of Leading Tech】

The major tech giants experienced widespread declines. Microsoft fell by 2.03%, Apple by 0.83%, Amazon by 2.21%, Google A by 1.24%, and Meta by 0.60%. Tesla saw a significant drop of 5.65%. Meta’s stock was pressured by setbacks in the marketing of its Llama 3 AI model, which failed to attract interest from Amazon and Microsoft. Meanwhile, Microsoft’s AI tool, Recall, will begin testing in October, potentially impacting future performance positively. Tesla's stock plummeted due to evaluations concerning its self-driving taxi development. Additionally, the National Labor Relations Board designated Amazon as a joint employer for delivery drivers, potentially paving the way for national union organization and posing operational challenges for Amazon.

【AI and Semiconductor Sector Performance】

The AI and semiconductor sectors underperformed. Nvidia fell by 3.70%, with a market cap reaching $3.04 trillion, leading the decline in related stocks. SMIC dropped by 3.04%, Arm Holdings by 1.13%, and Micron Technology by 3.76%. Despite Nvidia raising its target price ahead of its earnings report, market sentiment remained cautious. TSMC received a substantial €5 billion subsidy, potentially boosting its production capacity significantly, but its stock still declined by 2.92%. Notably, Qualcomm unveiled a new chip targeting the mid-range AI market, but its stock fell by 3.00%.

【Electric Vehicle Sector Performance】

In the electric vehicle sector, Tesla experienced the most significant decline, down by 5.65%. Meanwhile, Lucid introduced three affordable electric vehicles to compete with Tesla’s Model Y and Model 3. Domestic new entrants showed steady performance, with Li Auto rising by 1.04%, Nio remaining flat, and XPeng dropping by 2.12%. Zeekr had a standout performance, surging by 7.06%. Additionally, XPeng announced plans to enter more right-hand drive markets, including the UK.

【Oil Stocks Performance】

Oil stocks generally rose. ExxonMobil increased by 0.77%, Occidental Petroleum edged up by 0.14%, and Chevron rose by 0.28%. Notably, Chevron plans to invest $1 billion in Bangalore, India, to establish its largest technology center outside the U.S., which could benefit its long-term growth prospects.

【Cryptocurrency Stocks Performance】

Cryptocurrency-related stocks mostly declined. Coinbase Global fell by 3.78%, MicroStrategy by 5.38%, Riot Platforms by 3.59%, and Marathon Digital by 4.37%. Although Bitcoin rebounded by over 20% from its low point, overall market sentiment remained cautious.

【Meme Stocks Performance】

Meme stocks generally fell. AMC Theatres dropped by 1.80%, and GameStop declined by 1.91%. Although AMC's newly released 3D version of “Coraline” exceeded box office expectations, it failed to boost the stock price.

【Gold Stocks Performance】

Gold stocks mostly decreased. LBMA Gold Price PM fell by 1.20%, Barrick Gold dropped by 1.84%, Newmont by 0.89%, and Franco-Nevada by 1.96%. Despite market confidence in gold prices rising to $2,750 by year-end, short-term investor sentiment remained subdued.

【Retail Stocks Performance】

Retail stocks showed mixed performance. Walmart rose by 0.45%, Costco fell by 0.44%, Home Depot decreased by 1.38%, and Target dropped by 1.53%. Despite Target's second-quarter performance exceeding expectations and a strong outlook, it did not fully offset market caution.

【Bank Stocks Performance】

Bank stocks showed mixed performance. JPMorgan Chase rose by 0.95%, Bank of America increased by 1.26%, Wells Fargo by 0.90%, Morgan Stanley fell by 0.13%, Goldman Sachs rose by 0.26%, and Citigroup fell by 0.18%. Despite a generally strong performance, market focus remained on the Federal Reserve’s policy moves.

【Vaccine Stocks Performance】

Vaccine stocks mostly declined. Pfizer fell by 0.86%, Moderna plummeted by 6.47%, BioNTech by 1.98%, and Novavax tumbled by 7.57%. Although the updated COVID-19 vaccines from Pfizer and Moderna received FDA approval, it failed to lift the related stocks.

【Other Notable Stocks and Sectors】

Other noteworthy stocks include ULTATEL, which was recognized as an Inc. 5000 honoree for 2024, indicating robust growth potential. Additionally, Palantir Technologies’ stock surged, with analysts recommending to wait for a pullback before buying.

【Investment Advice】

Overall, the recent U.S. stock market was affected by multiple factors, resulting in weak performance. Tech stocks, especially the big seven and the AI and semiconductor sectors, saw broad declines. While some sectors like oil stocks performed well, overall market sentiment remained cautious. In the current market environment, investors should maintain caution, closely monitor Federal Reserve policy developments and company fundamentals, and adjust their portfolios accordingly.