Trending Sectors | Tech Resilience & Semiconductor Promise Amid EV, Pharma, and Commodity Pressures

【Major U.S. Stock Indices】

On October 10 (Friday), the major U.S. stock indices all fell by more than 1%. The S&P 500 Index dropped 2.71%, closing at 6,552.51 points; the Dow Jones Industrial Average declined 1.90%, ending at 45,479.60 points; while the Nasdaq plummeted 3.56%, finishing at 22,204.43 points. Overall, market sentiment was gloomy, as investors were concerned about upcoming macroeconomic data and corporate earnings season. Additionally, geopolitical tensions exacerbated market unease.

【Performance of Leading Tech】

Among the seven tech giants, Microsoft fell 0.47%, Apple declined 1.56%, Alphabet's Google A dropped 1.26%, and Tesla decreased 0.72%. In contrast, Meta rose 2.18%, Amazon gained 1.12%, and Nvidia surged by 1.83%. Despite a general downturn, Meta and Amazon performed relatively well, possibly due to optimism about their advertising and cloud computing business prospects. Meanwhile, Apple's decline could be related to sluggish sales in the Chinese market, and Tesla's stock dip may be affected by global delivery challenges.

【AI and Chip Sector Performance】

Nvidia continued to be a standout, rising for two consecutive days with a weekly gain of 4.07%, reaching a market value of $4.45 trillion. Arm Holdings also performed well, increasing by 2.33%. However, SMCI and Micron Technology fell by 1.19% and 2.14%, respectively. The semiconductor manufacturing sector showed mixed results, with TSMC down 1.52%, while Intel rose 0.99%. In the chip equipment and materials segment, Applied Materials climbed 1.28%, but ASML and Lam Research fell by 0.74% and 1.08%, respectively. Overall, the chip industry remains poised for long-term growth driven by technological innovation and market demand.

【Electric Vehicle Sector Performance】

The electric vehicle sector weakened overall, with Tesla down 0.72%, reducing its market value to $1,374.917 billion. Domestic newcomers like Li Auto, NIO, and XPeng Motors also fell by 4.18%, 4.97%, and 5.29%, respectively. Traditional car makers showed weakness too, with Toyota, General Motors, and Ford Motors declining by 2.97%, 0.85%, and 2.04%, respectively. Intensified competition in the electric vehicle market, coupled with economic uncertainty, leads investors to adopt a cautious outlook for this sector in the short term.

【Weight Loss and Pharmaceutical Sector Performance】

Weight loss stocks saw more declines than gains, with Eli Lilly, AstraZeneca, Novo Nordisk, and Amgen dropping by 2.54%, 0.60%, 2.98%, and 1.79%, respectively; the only gainer, GlaxoSmithKline, rose marginally by 0.22%. In the vaccine segment, Pfizer, Moderna, and BioNTech fell by 1.71%, 1.40%, and 1.69%, respectively. The pharmaceutical sector overall faced pressure due to investor concerns about uncertainties in drug pricing policies.

【Oil and Gold Stocks Performance】

Oil stocks broadly declined, with ExxonMobil, Occidental Petroleum, and Chevron dropping by 0.97%, 1.15%, and 1.37%, respectively. Gold stocks also did not fare well, with Gold Bullion ETF, Barrick Gold, and Newmont falling by 1.85%, 2.78%, and 3.61%, respectively. Expectations of slowing global economic growth put pressure on the commodities market.

【Other Sectors to Watch】

The cryptocurrency and meme stock sectors showed divergence, with Coinbase Global slightly down by 0.07%, while AMC Entertainment rose by 3.17%. In retail stocks, Costco stood out, increasing by 3.07%, whereas Walmart and Home Depot fell by 1.10% and 1.59%. Bank stocks generally rose, with JPMorgan Chase and Goldman Sachs gaining 0.49% and 0.44%, respectively.

【Investment Advice】

The current market environment is complex, and investors need to proceed cautiously. It is advisable to focus on company fundamentals and long-term growth potential, while closely monitoring macroeconomic data and geopolitical developments. Tech and semiconductor stocks with sustained technological innovation potential remain favorable for the long term; however, caution is warranted for pharmaceutical and energy stocks affected by policy changes.