Trending Sectors | Tech Weakens, Energy Shines: A Deep Dive into Leading U.S. Stock Sector Performance

【Major U.S. Stock Indices】

On Monday, the major U.S. stock indices closed with mixed results. The Dow Jones Industrial Average rose 0.16% to a record high of 34,784.74 points; the S&P 500 fell 0.31% to 4,441.67 points; and the Nasdaq dropped 0.85% to 14,913.58 points. Overall, the Dow showed relative strength, while declines in tech stocks dragged down the S&P 500 and Nasdaq.

【Performance of Leading Tech】

On Monday, tech giants generally trended downward. Microsoft fell 0.79%, Apple edged up 0.15%, Nvidia dropped significantly by 2.25%, Amazon fell 0.87%, Google A edged up 0.33%, Meta dropped 1.30%, and Tesla had the largest decline, falling 3.23%. Microsoft's recent actions, such as hosting a cybersecurity event next month and aggressively pushing AI growth, have drawn market attention. Apple announced a CFO transition plan, and market expectations for new CFO Kevin Parekh remain unclear. Amazon expanded its cloud gaming business through its Fire TV devices. Additionally, Meta partnered with Sage Geosystems to develop geothermal power to support data center growth, highlighting its renewable energy initiatives.

【Artificial Intelligence and Semiconductor Sector Performance】

The AI and semiconductor sectors were weak. Nvidia dropped 2.25%, with market sentiment cautious ahead of Nvidia's second-quarter earnings release. Among Nvidia-related stocks, AMD fell 8.27%, Arm Holdings dropped 4.96%, and Micron Technology fell 3.83%. Nvidia is set to announce details of its Blackwell architecture, which might further influence the market. In the chip manufacturing sector, TSMC fell 1.29%, and Intel dropped 2.00%. In the chip equipment and materials sector, ASML fell 2.64%, Applied Materials dropped 3.18%, and Lam Research fell 3.36%. Additionally, Qualcomm announced the acquisition of French IoT company Sequans’ 4G IoT technology, but its stock still fell 2.31%.

【Electric Vehicle, Weight Loss Drug, Oil, Gold, Cryptocurrency, and Meme Stocks Performance】

In the electric vehicle sector, Tesla fell 3.23%, with its market cap down to $681.129 billion. Among Chinese EV makers, Li Auto fell 2.31%, Nio dropped 1.23%, while Xpeng Motors surged 7.13%. In the weight loss drug sector, major constituent stocks like Eli Lilly, Novo Nordisk, and AstraZeneca generally declined. In the oil sector, Exxon Mobil performed notably well, rising 2.14%, Occidental Petroleum gained 0.23%, and Chevron rose 0.60%. Cryptocurrency stocks generally fell, with Coinbase Global dropping 3.50% and MicroStrategy falling 2.07%. Among meme stocks, AMC Entertainment remained flat, while GameStop fell 3.83%. Gold stocks showed mixed performance, with Newmont rising 0.42% and Barrick Gold falling 0.15%.

【Other Notable Sectors or Stocks】

In retail stocks, Walmart rose 0.44%, Costco gained 1.51%, Home Depot fell 0.39%, and Target rose 0.25%. Bank stocks showed notable divergence, with JPMorgan Chase rising 0.39%, Bank of America up 0.38%, and Wells Fargo edging up 0.04%. Among vaccine stocks, Pfizer edged up 0.07%, Moderna fell 0.95%, and BioNTech fell 0.77%.

【Market Summary and Investment Advice】

Overall, the U.S. stock market showed a trend of weakening tech stocks while traditional sectors remained relatively resilient. Investors need to closely monitor companies about to release their earnings, particularly heavyweight firms like Nvidia. Given the current market environment, tech stocks exhibit high volatility; thus, investors may consider reducing risk exposure and increasing allocation to defensive sectors such as consumer staples and energy stocks. Additionally, keep an eye on macroeconomic data and Federal Reserve policies to identify investment opportunities amid market fluctuations.