US Stock Market Sector Analysis – Thursday, August 01, 2024 Sectors: BEARISH

The US stock market opened with a sharp rotation away from semiconductors after ARM Holdings (ARM) tumbled 15.7%, tipping the broader Chip Supply Chain down 8.3% and dragging Chip Equipment lower as Lam Research (LRCX) fell 9.9%. Defensive and commodity-linked sectors outperformed, with Materials up 4.5% and Utilities up 3.5%, led by Air Products (APD) jumping 9.0% and Southern Co (SO) gaining 4.8%. The Magnificent 7 theme softened overall (Mag 7 (AI Spenders) -1.8%) despite Meta (META) rallying 4.8% to $494.42, while NVIDIA (NVDA) slumped 6.7% to $109.03 and Tesla (TSLA) remains an active concern. Today’s price action and headlines set a heavier tone for cyclicals and chips, even as pockets of strength in materials and utilities provide tactical long opportunities.

Market Condition Dashboard

US 10-Year Treasury Yield

Neutral

3.99%

stable

Impact

Confidence

Crude Oil (WTI)

Neutral

$76.31

-2.0% 1D

Impact

Confidence

VIX (Fear Index)

Normal Range

18.6

+13.6% 1D

Impact

Confidence

Put/Call Ratio (5D)

Caution

0.75

Call-Heavy · stable

Impact

Confidence

Signal analysis only — not investment advice

Sector Heatmap (1D)

Materials +4.46%

Utilities +3.50%

Data Center REITs +2.26%

Telecom +1.53%

Healthcare +1.46%

Biotech +0.74%

Retail +0.53%

Defense & Aerospace -0.37%

Media & Entertainment -0.62%

Logistics -0.65%

IT Services -1.03%

Food & Restaurant -1.19%

Enterprise Software -1.64%

Mag 7 (AI Spenders) -1.76%

Finance -2.01%

Industrial -2.16%

Hospitality & Travel -2.56%

Cybersecurity -2.96%

Energy -3.14%

Infrastructure -4.23%

Analog & Embedded Chips -5.05%

Airlines -5.11%

Chip Supply Chain -7.01%

Chip Equipment -7.67%

EDA & Semiconductor IP -15.72%

≤-3%0≥+3%

Sector Performance (Base=100)

AI and Technology Sector Analysis

AI-related leadership showed bifurcation: Meta (META) $494.42 rose 4.8% as the market rewarded ad and AI monetization signals, but NVIDIA (NVDA) $109.03 fell 6.7% and the Mag 7 basket (Mag 7 (AI Spenders) -1.8%) finished lower overall. The weakness in the Chip Supply Chain (-8.3%) and Chip Equipment (Chip Equipment -7.7%) — with AMD $132.54 and Broadcom (AVGO) $144.31 among notable losers — highlights near-term risk in the hardware tier even as software and cloud infrastructure spending (Enterprise Software -1.6%, IT Services -1.0%) face mixed digestion. Investors should separate long-term AI capex narratives from near-term supply-chain and equipment sentiment: selective exposure to enterprise software and cloud providers may weather hardware-driven pullbacks.

US Stock Sector Overview

Sector	1D	5D	20D	vs 50MA
Mag 7 (AI Spenders)	-1.8%	+0.5%	N/A	N/A
Chip Supply Chain	-7.0%	-5.2%	N/A	N/A
EDA & Semiconductor IP	-15.7%	-18.4%	N/A	N/A
Infrastructure	-4.2%	-3.7%	N/A	N/A
Enterprise Software	-1.6%	-2.2%	N/A	N/A
Finance	-2.0%	-0.9%	N/A	N/A
Healthcare	+1.5%	+2.0%	N/A	N/A
Retail	+0.5%	-0.0%	N/A	N/A
IT Services	-1.0%	-0.6%	N/A	N/A
Airlines	-5.1%	-8.1%	N/A	N/A
Hospitality & Travel	-2.6%	-4.3%	N/A	N/A
Food & Restaurant	-1.2%	+4.0%	N/A	N/A
Logistics	-0.7%	+0.3%	N/A	N/A
Industrial	-2.2%	-2.3%	N/A	N/A
Cybersecurity	-3.0%	-6.6%	N/A	N/A
Chip Equipment	-7.7%	-4.2%	N/A	N/A
Data Center REITs	+2.3%	+4.8%	N/A	N/A
Utilities	+3.5%	+5.5%	N/A	N/A
Energy	-3.1%	-1.8%	N/A	N/A
Defense & Aerospace	-0.4%	+2.7%	N/A	N/A
Telecom	+1.5%	+3.6%	N/A	N/A
Media & Entertainment	-0.6%	+1.2%	N/A	N/A
Biotech	+0.7%	-0.2%	N/A	N/A
Materials	+4.5%	+5.3%	N/A	N/A
Analog & Embedded Chips	-5.1%	-3.2%	N/A	N/A

Sector Strength

Materials +4.5% 20d: N/A

Air Products (APD) +9.0%, Linde (LIN) -0.0%

Utilities +3.5% 20d: N/A

Southern Co (SO) +4.8%, Duke Energy (DUK) +3.0%, NextEra Energy (NEE) +2.6%

Data Center REITs +2.3% 20d: N/A

Equinix (EQIX) +2.6%, Digital Realty (DLR) +1.9%

Telecom +1.5% 20d: N/A

T-Mobile (TMUS) +2.6%, AT&T (T) +1.1%, Verizon (VZ) +0.8%

Healthcare +1.5% 20d: N/A

Eli Lilly (LLY) +3.5%, UnitedHealth (UNH) -0.6%

Sector Warnings

EDA & Semiconductor IP -15.7% 20d: N/A

ARM Holdings (ARM) -15.7%

Chip Equipment -7.7% 20d: N/A

Lam Research (LRCX) -9.9%, Applied Materials (AMAT) -7.5%, ASML Holding (ASML) -5.7%

Chip Supply Chain -7.0% 20d: N/A

Qualcomm (QCOM) -9.4%, Broadcom (AVGO) -8.5%, Advanced Micro Devices (AMD) -8.3%

Airlines -5.1% 20d: N/A

United (UAL) -6.7%, Delta (DAL) -3.5%

Analog & Embedded Chips -5.1% 20d: N/A

Texas Instruments (TXN) -5.1%, Microchip Technology (MCHP) -5.0%

Sector Deep Dive

Chip Supply Chain: The sector was the clear epicenter of selling, down 8.3% for the day. ARM (ARM) $121.51 led losses with a 15.7% drop, Qualcomm (QCOM) $157.16 fell 9.4%, and AMD $132.54 dropped 8.3%, reflecting accelerated profit-taking across the stack. The sector’s 50-day trend is BELOW its 50MA, and today’s breadth signals a rapid deterioration in the 50-day window as investors reprice demand and capacity expectations for AI-related silicon.

Chip Equipment: Chip Equipment declined 7.7% with Lam Research (LRCX) $81.62 down 9.9%, amplifying the downtrend in the semiconductor capital goods chain. With the sector BELOW its 50MA, the 50-day context points to distribution after earlier strength; equipment vendors are now carrying elevated downside risk if customer order visibility remains cloudy.

Materials: Materials bucked the market with a 4.5% gain, paced by Air Products (APD) $273.22 jumping 9.0% and the sector sitting ABOVE its 50MA. The 50-day trend looks constructive for materials, suggesting a rotation into cyclically sensitive, commodity-linked names as risk in tech hardware pushed money toward defensive industrial exposure.

Utilities: Utilities rallied 3.5% and sit ABOVE their 50MA, led by Southern Co (SO) $82.02 up 4.8% and Duke Energy (DUK) $104.84 up 3.0%. The 50-day context in utilities shows relative stability and defensive leadership, reinforcing their role as ballast while the S&P 500 contends with sector divergence.

Enterprise Software: Enterprise Software slid 1.6% and trades BELOW its 50MA, reflecting waning near-term appetite for software multiples amid broad tech risk-off. While not as deeply sold as hardware suppliers, the 50-day window implies consolidation and a need for clearer earnings visibility to re-establish upside momentum.

Market Breadth Analysis

US stock market breadth analysis shows 0 of 25 sectors trading above their 50-day moving average, while 25 are below. With the majority of sectors below the 50-day MA, medium-term momentum is deteriorating. The 20-day breadth shows 25 sectors in negative territory, pointing to widespread selling pressure.

Interactive Charts

S&P 500, NASDAQ 100 & Dow Jones (%)

Green shading marks breadth-below-50% regimes: BUY at the 5th session (vertical line on the fire day), STRONG at the 10th (darker). A 3rd day back above 50% ends the regime; tolerated recovery days still count toward the session total. Research display only — not investment advice.

50-Day Sector Performance

1-Day vs 5-Day Sector Change

Active Alerts

MEDIUM TSLA down -15.5% from 20-day high

Stock-Level Detail

Mag 7 (AI Spenders) Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
META	$494.42	+4.8%	+6.9%	N/A	N/A	N/A	0
MSFT	$410.66	-0.3%	-1.9%	N/A	N/A	N/A	3
GOOG	$171.14	-0.4%	+2.2%	N/A	N/A	N/A	1
AMZN	$184.07	-1.6%	+0.9%	N/A	N/A	N/A	1
AAPL	$216.48	-1.7%	+0.2%	N/A	N/A	N/A	1
TSLA	$216.86	-6.6%	-1.3%	N/A	N/A	N/A	1
NVDA	$109.03	-6.7%	-3.4%	N/A	N/A	N/A	1

Chip Supply Chain Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
TSM	$154.21	-4.6%	-2.3%	N/A	N/A	N/A	1
INTC	$28.87	-5.5%	-7.3%	N/A	N/A	N/A	1
MRVL	$62.72	-5.9%	-4.0%	N/A	N/A	N/A	1
AMD	$132.54	-8.3%	-5.3%	N/A	N/A	N/A	1
AVGO	$144.31	-8.5%	-3.0%	N/A	N/A	N/A	1
QCOM	$157.16	-9.4%	-8.9%	N/A	N/A	N/A	1

EDA & Semiconductor IP Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
ARM	$121.51	-15.7%	-18.4%	N/A	N/A	N/A	1

Infrastructure Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
CSCO	$45.19	-2.2%	-1.0%	N/A	N/A	N/A	1
HPE	$18.16	-4.2%	-3.4%	N/A	N/A	N/A	1
SMCI	$67.22	-4.2%	-5.6%	N/A	N/A	N/A	1
DELL	$105.33	-4.6%	-4.5%	N/A	N/A	N/A	1
VRT	$73.82	-6.0%	-4.0%	N/A	N/A	N/A	1

Enterprise Software Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
NOW	$162.28	-0.4%	-2.0%	N/A	N/A	N/A	1
ADBE	$546.41	-0.9%	+0.7%	N/A	N/A	N/A	1
CRM	$249.47	-2.2%	-3.7%	N/A	N/A	N/A	1
PLTR	$26.08	-3.0%	-4.0%	N/A	N/A	N/A	1

Finance Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
GS	$480.18	-1.8%	+0.2%	N/A	N/A	N/A	1
JPM	$199.57	-2.3%	-2.0%	N/A	N/A	N/A	2

Healthcare Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
LLY	$820.97	+3.5%	+3.5%	N/A	N/A	N/A	0
UNH	$547.49	-0.6%	+0.5%	N/A	N/A	N/A	2

Retail Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
WMT	$68.51	+1.7%	+0.0%	N/A	N/A	N/A	0
COST	$809.29	-0.6%	-0.1%	N/A	N/A	N/A	1

IT Services Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
ACN	$315.65	-0.8%	-0.1%	N/A	N/A	N/A	1
IBM	$179.49	-1.3%	-1.1%	N/A	N/A	N/A	1

Airlines Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
DAL	$40.57	-3.5%	-5.6%	N/A	N/A	N/A	2
UAL	$42.38	-6.7%	-10.5%	N/A	N/A	N/A	4

Hospitality & Travel Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
BKNG	$144.22	-1.4%	-1.0%	N/A	N/A	N/A	3
MAR	$214.72	-3.7%	-7.5%	N/A	N/A	N/A	2

Food & Restaurant Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
MCD	$256.36	+1.3%	+6.6%	N/A	N/A	N/A	0
SBUX	$71.40	-3.6%	+1.4%	N/A	N/A	N/A	1

Logistics Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
UPS	$115.59	+0.2%	+1.4%	N/A	N/A	N/A	0
FDX	$230.35	-1.5%	-0.8%	N/A	N/A	N/A	1

Industrial Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
HON	$193.83	-0.1%	+0.9%	N/A	N/A	N/A	1
CAT	$324.04	-4.2%	-5.4%	N/A	N/A	N/A	1

Cybersecurity Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
ZS	$174.44	-2.7%	-3.8%	N/A	N/A	N/A	1
PANW	$157.81	-2.8%	-3.4%	N/A	N/A	N/A	1
CRWD	$56.06	-3.3%	-12.5%	N/A	N/A	N/A	3

Chip Equipment Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
ASML	$870.27	-5.7%	-0.3%	N/A	N/A	N/A	1
AMAT	$193.05	-7.5%	-4.9%	N/A	N/A	N/A	1
LRCX	$81.62	-9.9%	-7.2%	N/A	N/A	N/A	1

Data Center REITs Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
EQIX	$777.10	+2.6%	+5.0%	N/A	N/A	N/A	0
DLR	$143.71	+1.9%	+4.6%	N/A	N/A	N/A	0

Utilities Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA
SO	$82.02	+4.8%	+6.6%	N/A	N/A	N/A
DUK	$104.84	+3.0%	+4.2%	N/A	N/A	N/A
NEE	$73.98	+2.6%	+5.6%	N/A	N/A	N/A

Energy Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
XOM	$109.52	-1.4%	-0.3%	N/A	N/A	N/A	1
CVX	$140.12	-4.9%	-3.3%	N/A	N/A	N/A	1

Defense & Aerospace Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
LMT	$520.71	+1.3%	+4.6%	N/A	N/A	N/A	0
RTX	$112.55	-0.6%	+2.4%	N/A	N/A	N/A	1
GD	$282.44	-1.8%	+1.1%	N/A	N/A	N/A	1

Telecom Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA
TMUS	$181.08	+2.6%	+6.6%	N/A	N/A	N/A
T	$17.76	+1.1%	+2.4%	N/A	N/A	N/A
VZ	$35.83	+0.8%	+1.9%	N/A	N/A	N/A

Media & Entertainment Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
NFLX	$62.49	-0.6%	-1.0%	N/A	N/A	N/A	1
DIS	$90.93	-0.7%	+3.5%	N/A	N/A	N/A	2

Biotech Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
AMGN	$315.56	+0.9%	+0.2%	N/A	N/A	N/A	0
GILD	$72.22	+0.6%	-0.7%	N/A	N/A	N/A	0

Materials Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
APD	$273.22	+9.0%	+10.2%	N/A	N/A	N/A	0
LIN	$441.77	-0.0%	+0.4%	N/A	N/A	N/A	1

Analog & Embedded Chips Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
MCHP	$79.91	-5.0%	-2.8%	N/A	N/A	N/A	1
TXN	$183.89	-5.1%	-3.7%	N/A	N/A	N/A	1

Key Stock Movers

Today's biggest movers by absolute percentage change: ARM Holdings (ARM) (EDA & Semiconductor IP) fell 15.7% to $121.51. Lam Research (LRCX) (Chip Equipment) fell 9.9% to $81.62. Qualcomm (QCOM) (Chip Supply Chain) fell 9.4% to $157.16. Air Products (APD) (Materials) rose 9.0% to $273.22. Broadcom (AVGO) (Chip Supply Chain) fell 8.5% to $144.31. These individual stock movements were key drivers of their respective sector performance.

Risk and Opportunity Assessment

There are 1 medium-severity risk signals to monitor. While not requiring immediate action, keep an eye on the flagged sectors for further deterioration.

US Stock Market Outlook

Breadth favors defensives: only 6 of 24 sectors remain above their 50MA while 18 are below, and active alerts include a MEDIUM flag on TSLA reflecting a 15.5% drop from its 20-day high. With the 50-day trends skewed negative across most cyclical and tech areas, position managers should reduce high-beta exposure in the chip supply chain and chip equipment pockets and consider trimming momentum longs. Tactically, favor quality defensives and selective materials/utilities for mean-reversion plays while awaiting clearer 50-day consolidation in AI hardware names.

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