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Trending Sectors | Tech Giants, AI, EVs, Weight Loss Drugs Shine Amid Mixed Signals in Oil and Crypto Stocks

AInvestFriday, Aug 9, 2024 5:31 pm ET
3min read
【Major U.S. Stock Indices】

On August 8th (Thursday), the major U.S. stock indices all rose by over 1%. The S&P 500 Index increased by 2.30% to 5319.31 points; the Dow Jones Index climbed by 1.76% to 39446.49 points; and the Nasdaq Index surged by 2.87% to 16660.02 points. Overall, the market rebounded significantly, with investor sentiment improving, driven primarily by an oversold rebound and changes in market expectations due to a weak Treasury auction.

【Performance of Leading Tech】

The major tech giants in the U.S. generally saw gains. Microsoft rose by 0.83%, Apple by 1.37%, Amazon by 0.69%, Google A by 1.01%, Meta by 1.60%, Tesla by 0.58%, while Nvidia fell by 0.21%. Meta's weekly cumulative increase reached 6.1%, largely driven by the expansion of its advertising business and AI technology applications. Conversely, Google faced pressure from an antitrust lawsuit, which could potentially force it to divest its Android system. Microsoft, meanwhile, is collaborating with Palantir to advance its AI platform. Additionally, Apple announced the fall release of a new Mac Mini with an M4 chip and plans to introduce advanced AI features to further enhance its product competitiveness. Amazon has partnered with TikTok and Pinterest to launch in-app shopping features, which are expected to generate substantial advertising revenue.

【AI and Semiconductor Sector】

In the AI sector, performance varied among major companies. Nvidia fell by 0.21%, but its market value remains high at $2.58 trillion, reflecting confidence in its long-term growth. SMIC dropped by 0.23%, while Micron Technology rose by 1.10%. Mizuho Securities continues to be optimistic about Nvidia, projecting strong demand for AI chips. In the chip manufacturing sector, TSMC rose by 1.56%, highlighting its leading position in AI chip manufacturing. Among chip equipment and materials companies, ASML fell by 1.84%, and Applied Materials rose by 0.33%. In chip design, Broadcom increased by 1.73%, and Synopsys by 1.88%.

【Electric Vehicle Sector】

The electric vehicle sector saw mixed results. Tesla rose by 0.58%, marking its second consecutive day of gains, with its market cap rising to $638.9 billion. However, Chinese EV makers showed declines, with Li Auto up by 0.81%, Nio down by 1.05%, and Xpeng Motors down by 2.97%. Tesla faces an increasingly competitive environment, especially from the Chinese market. Meanwhile, Xpeng Motors announced restructuring plans aimed at enhancing its competitiveness in the AI field.

【Weight Loss Drug Sector】

Stocks in the weight loss drug sector mostly rose. Eli Lilly closed up by 5.57%, and Novo Nordisk by 4.14%. Eli Lilly’s strong performance was mainly due to progress in its new drug development and robust market demand. Novo Nordisk's growth was driven by its dominant position in the weight loss drug market and ongoing innovation.

【Oil Stocks】

Oil stocks showed mixed results. ExxonMobil rose by 0.81%, Occidental Petroleum fell by 0.21%, and Chevron rose by 0.35%. Despite oil price fluctuations, ExxonMobil and Chevron demonstrated relative stability through diversified operations and cost control. Occidental Petroleum faced concerns over its future profitability.

【Cryptocurrency Stocks】

Cryptocurrency-related stocks were mixed. Coinbase Global rose by 2.06%, while Riot Platforms fell by 2.77%. Coinbase's growth was fueled by increased trading volume on its platform, whereas Riot Platforms was significantly affected by Bitcoin price volatility.

【Meme Stocks】

Meme stocks had varied performance. AMC Entertainment fell by 1.57%, and GameStop rose by 0.83%. AMC's decline was mainly due to market doubts about its future profitability, while GameStop's rise was driven by investor interest in its new gaming hardware and retro gaming trends.

【Other Notable Sectors】

Retail stocks were mixed. Walmart rose by 0.43%, Costco by 1.85%, Home Depot by 0.09%, and Target by 1.14%. Walmart’s gains were mainly driven by positive quarterly earnings expectations, while Costco performed well due to increased foot traffic and an upward revision of its target price. Target’s rise was attributed to its expanding market share.Bank stocks saw moderate gains, with JPMorgan Chase up by 0.85% and Bank of America up by 0.18%. JPMorgan’s launch of an AI assistant positively impacted its stock, while Bank of America’s gains were limited due to news of clients selling dollars.Vaccine stocks showed mixed performance, with Pfizer down by 0.73% and Moderna up by 0.72%. Pfizer’s decline was mainly due to market concerns about its future profitability, while Moderna performed well due to continuing sales of its COVID-19 vaccine.

【Investment Recommendations】

Overall, the market has experienced a rebound after a period of adjustment. Investors should pay attention to the upcoming quarterly earnings report from Walmart, July CPI data, and 13F filings, as these data points will significantly impact market sentiment. It is recommended to focus on companies with long-term growth potential, especially those with competitive advantages in AI, semiconductors, electric vehicles, and weight loss drugs. Additionally, remain vigilant and monitor market fluctuations and their underlying causes to adjust investment strategies accordingly.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.