Trending Sectors | Tech Under Pressure, EVs and Weight Loss Drugs Soar, Oil and Crypto Mixed

【Major U.S. Stock Indices】

The major U.S. stock indices showed mixed performances. The S&P 500 fell 0.2% to close at 4515.99 points; the Dow Jones Industrial Average rose 0.12% to close at 35236.16 points; and the Nasdaq dropped 0.42% to close at 13958.29 points. Overall market sentiment was cautious, with weakness in tech stocks dragging down the Nasdaq, while the Dow posted a slight gain supported by financial and industrial stocks.

【Performance of Leading Tech】

The seven major tech giants mostly declined. Microsoft (MSFT) fell 0.13%, mainly due to plans by the company's board members to sell 78,400 shares, and weaker-than-expected recovery in the PC market. Apple (AAPL) declined 0.86%, despite receiving a "buy" rating from Goldman Sachs with a slightly increased target price of $276, as concerns over the 30% "Apple tax" commission weighed on the market. Nvidia (NVDA) plunged 1.66%, resulting in a market cap loss of $27.9 billion, impacted by antitrust investigations and executive share sales. Amazon (AMZN) dropped 1.66%, even though the company won a $20 billion media account, the dismissal of a Prime Video privacy lawsuit did not boost the stock. Google (GOOGL) fell 0.58%, primarily affected by a Department of Justice investigation into its digital advertising business. Meta (META) edged up 0.19%, maintaining a "buy" rating with a target price of $660 from Cantor Fitzgerald. Tesla (TSLA) surged 4.18%, benefiting from Elon Musk's announcement of the launch of the super AI training cluster Colossus and strong performance in the Chinese market.

【AI and Semiconductor Sector】

The AI and semiconductor sectors had mixed performances. Nvidia (NVDA) dropped 1.66%, significantly shrinking its market cap due to heightened concerns over its high valuation and antitrust investigation. SMIC (AMD) fell 4.14%, mainly dragged down by Nvidia's decline. Arm Holdings (ARM) dropped 2.25%, affected by the overall weakness in the industry. Micron Technology (MU) bucked the trend, rising 0.8%, with Mizuho Securities maintaining its "buy" rating and a target price of $145. Intel (INTC) fell 3.33%, despite launching a new generation of AI PC chips, as setbacks in its chip foundry business and executive share sales heightened market concerns. TSMC (TSM) edged up 0.24%, showing relative stability. Chip equipment company ASML (ASML) fell 4.01%, with its rating downgraded to neutral by UBS.

【EV and Weight Loss Drug Sector】

The EV sector had mixed performances. Tesla (TSLA) surged 4.18% after the announcement of the launch of the super AI training cluster Colossus. Among domestic newcomers, Li Auto (LI) fell 1.21%, NIO (NIO) rose 2.17%, and XPeng Motors (XPEV) gained 0.72%. Traditional automakers had varied results: Toyota (TM) fell 0.77%, General Motors (GM) rose 0.08%, and Ford (F) fell 0.27%. In the weight loss drug sector, Eli Lilly (LLY) fell 1.13%, Novo Nordisk (NVO) dropped 1.29%, but GlaxoSmithKline (GSK) rose 1.87%. Overall, the sector saw more gains than losses, with market optimism about the future of weight loss drugs remaining strong.

【Oil and Gold Stocks】

Oil stocks generally declined. ExxonMobil (XOM) fell 1.22%, Occidental Petroleum (OXY) dropped 1.39%, and Chevron (CVX) declined 1.79%. OPEC+ discussions about delaying production increases added to oil price volatility, heightening market uncertainty. Gold stocks were also mixed. LBMA gold prices edged up 0.06%, but Barrick Gold (GOLD) fell 1.43% and Newmont Mining (NEM) dropped 1.26%.

【Cryptocurrency and Meme Stocks】

Cryptocurrency-related stocks showed mixed performances. Coinbase Global (COIN) fell 3.49%, dragged down by a decline in Bitcoin prices. Microstrategy (MSTR) rose 2.07%, Riot Platforms (RIOT) gained 1.03%, but Marathon Digital (MARA) dropped 2.49%. Among meme stocks, AMC Theatres (AMC) rose 1.51%, while GameStop (GME) fell 4.41%.

【Other Notable Sectors】

Retail stocks showed clear divergence. Walmart (WMT) rose 0.09%, Costco (COST) gained 1.30%, Home Depot (HD) fell 0.02%, Target (TGT) rose 0.45%, but Dollar Tree (DLTR) plunged 22.16%, primarily due to a downward revision in its full-year revenue guidance. Banking stocks were also mixed. JPMorgan Chase (JPM) fell 0.44%, Bank of America (BAC) dropped 0.49%, Wells Fargo (WFC) fell 0.43%, while Morgan Stanley (MS) rose 0.89% and Goldman Sachs (GS) gained 0.65%.

【Investment Recommendations】

Overall, the U.S. stock market showed mixed performances, with tech stocks generally under pressure, while financial and traditional industrial sectors remained relatively stable. Investors should be mindful of the high valuation risks in tech stocks, particularly those affected by antitrust investigations. Meanwhile, the EV and weight loss drug sectors still hold significant potential, with short-term fluctuations not altering the long-term upward trend. Increased volatility in oil and gold stocks calls for cautious trading. For cryptocurrency and meme stocks, investors are advised to remain vigilant, manage their positions, and avoid excessive speculation.