Trending Sectors | Tech and EV Struggle as Oil Stocks Shine Amid Cautious Market Sentiment

【Major U.S. Stock Indices】

On August 29 (Eastern U.S. time), all three major U.S. stock indices closed lower. The S&P 500 fell 0.64% to 6460.26 points, the Dow Jones Industrial Average declined 0.20% to 45544.88 points, and the Nasdaq dropped 1.15% to 21455.55 points. The market was broadly under pressure, mainly due to the drag from tech and chip stocks, with investors increasingly concerned about the economic outlook. The Nasdaq's performance was particularly poor, indicating stronger selling pressure on tech stocks.

【Performance of Leading Tech】

The seven major U.S. tech giants generally saw declines in trading. Microsoft fell 0.58%, Apple edged down 0.18%, Amazon dropped 1.12%, Meta decreased by 1.65%, and Tesla plunged 3.50%. Google A was one of the few tech giants to rise, with a slight increase of 0.60%. Nvidia fell 3.32%, continuing its three-day decline. The collective downturn of tech giants reflects a decrease in market risk appetite, with increasing selling pressure on high-valuation tech stocks. Notably, Nvidia's recent sustained decline may be related to market caution toward the short-term prospects of the AI sector.

【AI and Chip Sector Under Pressure】

The AI and chip sectors were notably weak yesterday. Nvidia, as a leader in the AI industry, fell for three consecutive days, leading the decline among related concept stocks. SMCI and Arm Holdings also suffered, dropping 5.53% and 2.97%, respectively. In the chip manufacturing area, TSMC and Intel weakened, falling 3.11% and 2.33%, respectively. Overall, the softness in the AI and chip sectors reflects cautious market sentiment about future growth in these areas, which may be related to a slowdown in global economic growth.

【Electric Vehicle Sector Under Pressure】

The electric vehicle sector performed poorly overall. Tesla plunged 3.50%, with its market cap dropping to $1076.88 billion. Among domestic newcomers, Li Auto slightly increased 0.39%, but NIO and XPeng Motors fell 2.00% and 4.06%, respectively. Traditional automakers performed relatively better, with General Motors and Ford rising 0.17% and 0.51%, respectively. The volatility in the electric vehicle market may be linked to economic uncertainty and intensified industry competition.

【Oil Stocks Rising】

In contrast to other sectors' general decline, oil stocks showed resilience yesterday. ExxonMobil rose 0.83% and Chevron increased 0.80%. The rise in oil stocks may be benefiting from firm oil prices and optimistic market expectations for energy demand.

【Cryptocurrency and Meme Stock Volatility】

Cryptocurrency-related stocks showed mixed performance, with Coinbase Global and Strategy down 1.27% and 1.31%, while MARA Holdings slightly rose 0.13%. Meme stocks were generally pressured, with AMC Entertainment and GameStop falling 0.71% and 1.67%, respectively. Interest in high-risk assets seems to be cooling.

【Gold and Retail Stock Divergence】

Gold stocks showed mixed performance, with Newmont and Franco-Nevada rising 1.96% and 2.11%, while Barrick Gold fell 2.78%. Retail stocks also showed a mixed pattern, with Walmart rising 0.91% and Target falling 0.86%. The rise in gold stocks may be driven by safe-haven demand, while the divergence in retail stocks reflects fluctuations in consumer confidence.

【Vaccine Stock Mixed Performance】

Among vaccine stocks, Pfizer rose 0.65%, while Moderna and BioNTech fell 1.55% and 1.89%, respectively. The mixed performance of vaccine stocks may be related to changes in market expectations regarding pandemic developments.

【Summary and Recommendations】

Overall, the U.S. stock market's performance on August 29 reflects investors' cautious attitude toward the economic outlook, with increased concerns over high-valuation tech and chip stocks. The rise in oil stocks shows some investors' preference for the energy sector. In the current market environment, investors should remain vigilant, monitor economic data and policy developments, and consider diversifying investments to mitigate risk.