Trending Sectors | Tech Tumbles, Oil and EVs Diverge: Key Insights for Investors in AI, Semiconductors, and More

【Major U.S. Stock Indices】

The major U.S. stock indices collectively declined. The S&P 500 fell 1.59% to 5861.57, primarily dragged down by weakening tech stocks. The Dow Jones Industrial Average decreased by 0.45% to 43239.50, mainly due to drops in Nvidia and Salesforce shares. The Nasdaq experienced a steep decline of 2.78%, closing at 18544.42, as tech stocks broadly underperformed. Overall, the market expressed disappointment in the performance of tech giants, with investors maintaining a cautious outlook regarding economic prospects.

【Performance of Leading Tech】

The top seven U.S. tech giants generally fell. Microsoft dropped 1.80% despite recently launching a preview of GPT-4.5 in its Azure OpenAI services, as investors expressed concerns over returns from its AI investments. Apple decreased by 1.27%, even as Goldman Sachs maintained a "buy" rating, projecting that the iPhone 16e will penetrate the mid-to-low end market. Amazon slid 2.62%, with its release of the Ocelot quantum chip drawing attention, yet receiving a tepid market reaction. Google A declined 2.45%, entering oversold territory, facing issues with investor confidence. Meta fell 2.29%, with its plan to launch a standalone AI application attracting interest but failing to boost its stock price. Tesla decreased by 3.04%, amid skepticism over its future growth trajectory following the launch of its autonomous taxi service in California. Overall, while tech giants continue to innovate, the market remains skeptical about their short-term returns.

【AI and Semiconductor Sector Performance】

The AI and semiconductor sectors saw significant declines. Nvidia plummeted 8.48% as, despite strong AI spending reported in its financials, investor concerns over short-term performance led to a steep drop in its stock price. SMCI and Arm Holdings also fell by 15.97% and 6.21%, respectively. Microsoft called for more relaxed export controls on AI chips, but the market remains cautious about risks in the semiconductor sector. Overall, the AI and semiconductor sectors face short-term profitability pressures, and investors should monitor their long-term growth potential.

【Performance of EVs, Weight Loss Drugs, Oil, and Other Sectors】

In the electric vehicle sector, Tesla registered a sixth consecutive day of losses, with its market cap declining to $906.897 billion. Domestic newcomers like NIO and XPeng showed better performance, rising 1.59% and 1.39%, respectively. Oil stocks generally increased, with ExxonMobil up 0.67%, benefiting from a brief rebound in international oil prices. Weight loss drug stocks showed mixed performance, with Viking Therapeutics rising 3.06%, while other companies like Eli Lilly and Novo Nordisk saw slight declines. Overall, the market's stance on new energy and traditional energy is increasingly divided, and investors should monitor changes in policy and market demand.

【Other Sector Performance】

Cryptocurrency-related stocks broadly fell, with Coinbase down 2.16%, linked to the ongoing decline in Bitcoin. Meme stocks such as AMC Entertainment and GameStop fell by 0.92% and 0.49%, respectively. Gold stocks were mixed, with Barrick Gold and Newmont falling by 3.52% and 3.37%. In retail, Walmart slightly rose by 0.68%, while Target and Costco fell by 1.19% and 1.02%, respectively. Banking stocks were mixed, with JPMorgan Chase and Bank of America posting slight gains, while Morgan Stanley and Goldman Sachs fell by 1.36% and 1.56%.

【Market Summary and Recommendations】

Overall, the U.S. stock market performed poorly, primarily weighed down by tech stocks, especially the pullback in the AI and semiconductor sectors. Investors should be wary of short-term market fluctuations while focusing on the long-term growth potential of tech giants. In the energy sector, oil stocks are supported by fluctuations in international oil prices, and investors should closely watch international market trends. For emerging markets like electric vehicles and weight loss drugs, attention should be paid to policy support and changes in market demand. Investors are advised to maintain a diversified investment portfolio to navigate market uncertainties.