Trending Sectors | Tech Giants Tumble, Oil Stocks Rise, EVs and AI Face Challenges, Retail Sector Mixed

【Major U.S. Stock Indices】

The three major U.S. stock indices closed lower collectively. The S&P 500 fell 0.33% to 5693.31 points; the Dow Jones Industrial Average declined 0.37% to 42299.70 points; the Nasdaq Composite dropped 0.53% to 17804.03 points. Overall, market sentiment was weak as investors showed caution towards recent market volatility.

【Performance of Leading Tech】

Stocks of the seven major tech giants generally fell. Nvidia had the largest drop of 5.74%, mainly due to concerns about a bubble in AI power stocks. Microsoft decreased by 1.31% as the company plans to develop its own artificial intelligence to reduce reliance on OpenAI. Apple's stock declined by 0.99% despite its active positioning in the AR/VR market, facing challenges from new regulations. Amazon fell 2.23% as it cuts support staff for its fulfillment services. Google A dropped 3.22% despite receiving FedRAMP high authorization to boost AI applications in national security, as the market reacted poorly to news of its closed-door development of the Android operating system. Meta fell 2.45%, even though it maintains a leading position in the AR/VR market, due to exposed content moderation flaws. Tesla fell 5.58%, even though analysts believe the company will benefit from Trump's auto tariffs, market sentiment remained weak.

【AI and Chip Sector】

The AI and chip sectors were hit hard. Nvidia saw another significant drop as concerns over its high market valuation increased. Stocks related to concepts like SMCI, Arm Holdings, and Micron Technology followed suit. Chip manufacturers like TSMC and Intel were not spared, falling 4.09% and 3.22% respectively. Chip equipment stocks such as ASML and Applied Materials were also dragged down, with the overall market showing uncertainty about the future demand for AI and chips. Additionally, SMCI's successful delivery of 20 new systems failed to boost its stock price.

【Electric Vehicle Sector】

The electric vehicle sector performed poorly, with Tesla plunging 5.58%. Its sales decline in the European market is considered temporary, but it failed to stop the stock from falling. Among the domestic newcomers, Li Auto rose 2.42% against the trend, as the company announced the full open-source of its self-developed vehicle operating system, "Ideal Halo OS," which may boost investor confidence. NIO and XPeng Motors fell 3.87% and 1.38% respectively, affected by overall market sentiment.

【Oil and Gold Sector】

Oil stocks rose against the trend, with Exxon Mobil, Occidental Petroleum, and Chevron rising 1.44%, 1.51%, and 1.22% respectively. A Goldman Sachs report indicated a short-term upward trend for oil prices, supporting oil stocks. In contrast, gold stocks generally fell, with companies like Barrick Gold and Newmont seeing declines, as investor demand for safe-haven assets may fluctuate due to market dynamics.

【Cryptocurrency and Meme Stocks】

Cryptocurrency-related stocks generally fell, with Coinbase Global and Microstrategy down 5.03% and 3.66% respectively. GameStop rose 11.65% against the trend, as the company's announcement to purchase Bitcoin and other crypto assets was well-received by investors. AMC Entertainment fell 1.30%, reflecting divided confidence in meme stocks.

【Other Sector Performance】

The retail sector was mixed, with Walmart and Home Depot seeing some gains, while Costco fell slightly. In the banking sector, Bank of America and Wells Fargo generally fell, as uncertainty in the financial environment may affect investor confidence. Vaccine stocks also faced selling pressure, with Moderna dropping as much as 7.00%, as the market remains cautious about the prospects of vaccine-related companies.

【Summary and Suggestions】

Overall, the U.S. stock market has experienced significant volatility recently, with varied performance across different sectors. In the current market environment, investors should remain cautious and pay attention to changes in macroeconomic indicators and specific dynamics within industries. It's particularly important to keep an eye on the long-term prospects of tech giants, AI, and the chip sector. In a high-uncertainty environment, it may be wise to adjust investment portfolios accordingly and increase the allocation of defensive assets.