US Stock Market Sector Analysis – Wednesday, August 07, 2024 BEARISH

The US stock market sold off around a cluster of micro- and macro-driven headlines, with Infrastructure leading declines after outsized weakness in server vendors and hardware names. Infrastructure fell 6.7% as Super Micro (SMCI) plunged 20.1% to $49.27 and Dell (DELL) slipped 7.2% to $85.38, while NVIDIA (NVDA) $98.75 dragged the Mag 7 lower as the group finished the day -1.3%. Utilities and Defense & Aerospace bucked the trend, with Southern Co (SO) $81.76 up 1.0% and Lockheed Martin (LMT) $520.38 up 1.3%, helping keep five sectors positive but leaving 16 in the red. The S&P 500 felt the breadth squeeze — only 3 of 24 sectors trade above their 50-day moving average today.

Market Condition Dashboard

US 10-Year Treasury Yield

Neutral

3.96%

stable

Impact

Confidence

Crude Oil (WTI)

Neutral

$75.23

+2.8% 1D

Impact

Confidence

VIX (Fear Index)

Elevated Caution

27.9

+0.5% 1D

Impact

Confidence

Put/Call Ratio (5D)

Caution

0.75

Call-Heavy · stable

Impact

Confidence

Signal analysis only — not investment advice

Sector Performance (Base=100)

AI and Technology Sector Analysis

The AI investment theme cooled materially as the Magnificent 7 retraced, with NVIDIA (NVDA) $98.75 down 5.1% and Broadcom (AVGO) $133.75 off 5.3% as chip supply chain stress reasserted itself. Cloud and enterprise software leaders held up more defensively — Microsoft (MSFT) $392.27 was modestly lower — but the sell-off in infrastructure hardware (Dell (DELL) $85.38 and Super Micro (SMCI) $49.27) highlights near-term demand uncertainty for data center buildouts. For investors focused on AI exposure, the day reinforces the need to balance Mag 7 holdings with selective exposure to chip supply chain recovery and enterprise software resiliency.

US Stock Sector Overview

Sector	1D	5D	20D	vs 50MA
Mag 7 (AI Spenders)	-1.3%	-7.1%	N/A	BELOW
Chip Supply Chain	-3.0%	-10.6%	N/A	BELOW
Infrastructure	-6.7%	-14.4%	N/A	BELOW
Enterprise Software	-0.6%	-3.6%	N/A	BELOW
Finance	+0.3%	-4.5%	N/A	BELOW
Healthcare	-1.5%	-4.2%	N/A	BELOW
Retail	-1.0%	-2.5%	N/A	BELOW
IT Services	-0.1%	-2.3%	N/A	BELOW
Airlines	-1.2%	-9.3%	N/A	BELOW
Hospitality & Travel	-1.7%	-5.8%	N/A	BELOW
Food & Restaurant	-0.2%	+0.2%	N/A	BELOW
Logistics	-1.8%	-6.1%	N/A	BELOW
Industrial	-0.3%	-2.5%	N/A	BELOW
Cybersecurity	+0.2%	-1.8%	N/A	BELOW
Chip Equipment	-2.1%	-8.1%	N/A	BELOW
Data Center REITs	-0.8%	-3.6%	N/A	BELOW
Utilities	+0.8%	-0.2%	N/A	ABOVE
Energy	+0.4%	-3.9%	N/A	BELOW
Defense & Aerospace	+0.6%	-1.5%	N/A	ABOVE
Telecom	+0.2%	-0.2%	N/A	ABOVE
Media & Entertainment	-2.1%	-4.9%	N/A	BELOW
Biotech	-2.6%	-5.1%	N/A	BELOW
Materials	-0.6%	-3.0%	N/A	BELOW
Analog & Embedded Chips	-2.6%	-9.7%	N/A	BELOW

Sector Strength

Utilities +0.8% 20d: N/A

Southern Co (SO) +1.0%, NextEra Energy (NEE) +0.8%, Duke Energy (DUK) +0.5%

Defense & Aerospace +0.6% 20d: N/A

Lockheed Martin (LMT) +1.3%, General Dynamics (GD) +0.6% [<50MA], RTX Corp (RTX) -0.2%

Energy +0.4% 20d: N/A

Exxon Mobil (XOM) +1.3% [<50MA], Chevron (CVX) -0.6% [<50MA]

Finance +0.3% 20d: N/A

Goldman Sachs (GS) +0.6% [<50MA], JPMorgan (JPM) +0.0% [<50MA]

Telecom +0.2% 20d: N/A

T-Mobile (TMUS) +0.4%, AT&T (T) +0.3%, Verizon (VZ) +0.0% [<50MA]

Sector Warnings

Infrastructure -6.7% 20d: N/A

Super Micro (SMCI) -20.1% [<50MA], Dell (DELL) -7.2% [<50MA], Hewlett Packard Enterprise (HPE) -3.1% [<50MA]

Chip Supply Chain -3.0% 20d: N/A

ARM Holdings (ARM) -5.6% [<50MA], Broadcom (AVGO) -5.3% [<50MA], Intel (INTC) -3.6% [<50MA]

Biotech -2.6% 20d: N/A

Amgen (AMGN) -5.0% [<50MA], Gilead (GILD) -0.3% [<50MA]

Analog & Embedded Chips -2.6% 20d: N/A

Microchip Technology (MCHP) -3.6% [<50MA], Texas Instruments (TXN) -1.5% [<50MA]

Chip Equipment -2.1% 20d: N/A

Lam Research (LRCX) -2.9% [<50MA], Applied Materials (AMAT) -2.6% [<50MA], ASML -0.8% [<50MA]

Sector Deep Dive

Infrastructure delivered the day’s most pronounced pain, down 6.7% as hardware suppliers snapped back sharply lower. Super Micro (SMCI) fell 20.1% to $49.27 and Dell (DELL) declined 7.2% to $85.38, and the sector is trading below its 50-day trend, underscoring a rapid re-pricing of near-term capex for data centers and cloud providers. The 50-day context suggests this is more than a post-earnings wobble — investor conviction in sustained infrastructure spend is under pressure until revenue momentum reappears.

Chip Supply Chain underperformed with a 3.0% one-day drop and worsening 50-day backdrop, reflecting broad de-risking of AI hardware bets. Broadcom (AVGO) slid 5.3% to $133.75 and ARM Holdings (ARM) dropped 5.6% to $107.09, both sitting below their 50-day reference as the group shows fragmented demand signals. The 50-day trend for the sector is clearly negative, meaning buying dips requires faith in an earnings cadence recovery or inventory digestion ahead.

Utilities were a relative haven, rising 0.8% on the day and remaining above their 50-day trend, driven by rate-stable names and defensive flows. Southern Co (SO) gained 1.0% to $81.76 and NextEra Energy (NEE) added 0.8% to $73.19, with the sector’s 50-day position reinforcing a flight-to-quality posture amid market volatility. For income-oriented portfolios, the 50-day confirmation supports modest overweighting while growth sectors reset.

Defense & Aerospace outperformed modestly, up 0.6% and trading above its 50-day moving average, led by Lockheed Martin (LMT) which rose 1.3% to $520.38. The sector’s 50-day resilience contrasts with cyclicals tied to commercial capex and travel, suggesting defense remains a structural defensive alternative in the current S&P 500 landscape. Tactical rotation toward names with stable backlog and margin profiles is consistent with the 50-day signals.

Market Breadth Analysis

US stock market breadth analysis shows 3 of 24 sectors trading above their 50-day moving average, while 21 are below. With the majority of sectors below the 50-day MA, medium-term momentum is deteriorating. The 20-day breadth shows 24 sectors in negative territory, pointing to widespread selling pressure.

Interactive Charts

S&P 500 & NASDAQ 100

50-Day Sector Performance

1-Day vs 5-Day Sector Change

Active Alerts

MEDIUM AMZN down -15.7% from 20-day high

MEDIUM NVDA down -23.0% from 20-day high

MEDIUM TSLA down -25.3% from 20-day high

Stock-Level Detail

Mag 7 (AI Spenders) Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
AAPL	$208.02	+1.2%	-3.9%	N/A	N/A	BELOW	0
AMZN	$162.77	+0.5%	-11.6%	N/A	N/A	BELOW	0
GOOG	$159.53	+0.1%	-6.8%	N/A	N/A	BELOW	0
MSFT	$392.27	-0.3%	-4.5%	N/A	N/A	BELOW	1
META	$485.66	-1.0%	-1.8%	N/A	N/A	ABOVE	1
TSLA	$191.76	-4.4%	-11.6%	N/A	N/A	BELOW	1
NVDA	$98.75	-5.1%	-9.4%	N/A	N/A	BELOW	1

Chip Supply Chain Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
TSM	$151.15	-0.2%	-2.0%	N/A	N/A	BELOW	1
AMD	$128.67	-1.2%	-2.9%	N/A	N/A	BELOW	2
QCOM	$149.61	-1.6%	-4.8%	N/A	N/A	BELOW	1
MRVL	$55.85	-3.6%	-11.0%	N/A	N/A	BELOW	1
INTC	$18.99	-3.6%	-34.2%	N/A	N/A	BELOW	5
AVGO	$133.75	-5.3%	-7.3%	N/A	N/A	BELOW	1
ARM	$107.09	-5.6%	-11.9%	N/A	N/A	BELOW	1

Infrastructure Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
CSCO	$43.02	-0.1%	-4.8%	N/A	N/A	BELOW	1
VRT	$67.06	-3.0%	-9.2%	N/A	N/A	BELOW	1
HPE	$15.92	-3.1%	-12.4%	N/A	N/A	BELOW	5
DELL	$85.38	-7.2%	-18.9%	N/A	N/A	BELOW	5
SMCI	$49.27	-20.1%	-26.7%	N/A	N/A	BELOW	1

Enterprise Software Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
CRM	$236.63	+0.7%	-5.1%	N/A	N/A	BELOW	0
ADBE	$513.62	-0.1%	-6.0%	N/A	N/A	BELOW	1
PLTR	$26.32	-1.0%	+0.9%	N/A	N/A	BELOW	1
NOW	$155.26	-2.1%	-4.3%	N/A	N/A	BELOW	1

Finance Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
GS	$454.15	+0.6%	-5.4%	N/A	N/A	BELOW	0
JPM	$192.32	+0.0%	-3.6%	N/A	N/A	BELOW	0

Healthcare Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
UNH	$541.10	-0.4%	-1.2%	N/A	N/A	ABOVE	3
LLY	$761.50	-2.7%	-7.2%	N/A	N/A	BELOW	1

Retail Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
COST	$802.76	-0.8%	-0.8%	N/A	N/A	BELOW	1
WMT	$65.68	-1.2%	-4.1%	N/A	N/A	BELOW	1

IT Services Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
IBM	$176.79	+0.0%	-1.5%	N/A	N/A	BELOW	0
ACN	$305.97	-0.2%	-3.1%	N/A	N/A	BELOW	1

Airlines Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
UAL	$38.76	-0.1%	-8.5%	N/A	N/A	BELOW	1
DAL	$36.48	-2.4%	-10.1%	N/A	N/A	BELOW	1

Hospitality & Travel Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
MAR	$210.79	-0.2%	-1.8%	N/A	N/A	BELOW	1
BKNG	$130.10	-3.3%	-9.8%	N/A	N/A	BELOW	1

Food & Restaurant Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
SBUX	$71.57	-0.1%	+0.2%	N/A	N/A	BELOW	1
MCD	$256.95	-0.3%	+0.2%	N/A	N/A	ABOVE	1

Logistics Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
UPS	$109.16	-0.9%	-5.6%	N/A	N/A	BELOW	4
FDX	$215.12	-2.7%	-6.6%	N/A	N/A	BELOW	1

Industrial Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
CAT	$318.45	-0.2%	-1.7%	N/A	N/A	BELOW	1
HON	$187.52	-0.4%	-3.3%	N/A	N/A	BELOW	5

Cybersecurity Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
PANW	$152.10	+0.8%	-3.6%	N/A	N/A	BELOW	0
ZS	$166.20	+0.3%	-4.7%	N/A	N/A	BELOW	0
CRWD	$57.67	-0.4%	+2.9%	N/A	N/A	BELOW	1

Chip Equipment Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
ASML	$823.63	-0.8%	-5.4%	N/A	N/A	BELOW	1
AMAT	$175.55	-2.6%	-9.1%	N/A	N/A	BELOW	1
LRCX	$73.54	-2.9%	-9.9%	N/A	N/A	BELOW	2

Data Center REITs Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
EQIX	$747.51	-0.6%	-3.8%	N/A	N/A	BELOW	1
DLR	$138.85	-1.0%	-3.4%	N/A	N/A	BELOW	1

Utilities Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA
SO	$81.76	+1.0%	-0.3%	N/A	N/A	ABOVE
NEE	$73.19	+0.8%	-1.1%	N/A	N/A	ABOVE
DUK	$105.69	+0.5%	+0.8%	N/A	N/A	ABOVE

Energy Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
XOM	$108.33	+1.3%	-1.1%	N/A	N/A	BELOW	0
CVX	$130.75	-0.6%	-6.7%	N/A	N/A	BELOW	5

Defense & Aerospace Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
LMT	$520.38	+1.3%	-0.1%	N/A	N/A	ABOVE	0
GD	$276.40	+0.6%	-2.1%	N/A	N/A	BELOW	0
RTX	$110.05	-0.2%	-2.2%	N/A	N/A	ABOVE	5

Telecom Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA
TMUS	$184.49	+0.4%	+1.9%	N/A	N/A	ABOVE
T	$17.56	+0.3%	-1.1%	N/A	N/A	ABOVE
VZ	$35.33	+0.0%	-1.4%	N/A	N/A	BELOW

Media & Entertainment Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
NFLX	$61.15	+0.3%	-2.1%	N/A	N/A	BELOW	0
DIS	$84.00	-4.5%	-7.6%	N/A	N/A	BELOW	1

Biotech Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
GILD	$69.87	-0.3%	-3.3%	N/A	N/A	BELOW	3
AMGN	$293.90	-5.0%	-6.9%	N/A	N/A	BELOW	1

Materials Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
APD	$263.69	-0.4%	-3.5%	N/A	N/A	ABOVE	1
LIN	$430.58	-0.9%	-2.5%	N/A	N/A	BELOW	1

Analog & Embedded Chips Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
TXN	$175.08	-1.5%	-4.8%	N/A	N/A	BELOW	1
MCHP	$68.19	-3.6%	-14.7%	N/A	N/A	BELOW	1

Key Stock Movers

Today's biggest movers by absolute percentage change: Super Micro (SMCI) (Infrastructure) fell 20.1% to $49.27. Dell (DELL) (Infrastructure) fell 7.2% to $85.38. ARM Holdings (ARM) (Chip Supply Chain) fell 5.6% to $107.09. Broadcom (AVGO) (Chip Supply Chain) fell 5.3% to $133.75. NVIDIA (NVDA) (Mag 7 (AI Spenders)) fell 5.1% to $98.75. These individual stock movements were key drivers of their respective sector performance.

Risk and Opportunity Assessment

There are 3 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

Near-term outlook is cautious: active alerts show three medium-level trade alerts (AMZN, NVDA, TSLA) and market breadth is weak with only 3 sectors above their 50-day moving average versus 21 below. With 16 sectors down today and several 50-day trends deteriorating, positioning should favor high-conviction defensives and select idiosyncratic longs while trimming momentum exposure among AI hardware and infrastructure names until breadth and the 50-day picture stabilize. Watch alert trajectories and sector-level 50-day breaches as triggers to re-enter risk or add cyclicals on confirmed improvement.

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