US Stock Market Sector Analysis – Wednesday, August 28, 2024 BEARISH

A sharp sell-off in infrastructure hardware names set the tone for the US stock market today as Super Micro (SMCI) plunged 19.0% to $44.35, pulling the Infrastructure sector down 4.2% and extending weakness across chip supply chain names. The S&P 500 closed lower amid a broader risk-off, with 15 of 24 sectors down and the Mag 7 (AI Spenders) group off 1.2% as NVIDIA (NVDA) slipped 2.1% to $125.40. Defense & Aerospace and Biotech bucked the trend, led by General Dynamics (GD) gaining 2.2% to $285.51 and Gilead (GILD) rising 2.0% to $74.17. Market breadth is mixed but deteriorating into the close after the intraday shock from SMCI and follow-through weakness in AMD and ARM Holdings (ARM).

Market Condition Dashboard

US 10-Year Treasury Yield

Neutral

3.84%

falling

Impact

Confidence

Crude Oil (WTI)

Neutral

$74.52

-1.3% 1D

Impact

Confidence

VIX (Fear Index)

Normal Range

17.1

+10.9% 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/technology investment theme showed cracks as the Magnificent 7 underperformed the broader market, with NVIDIA (NVDA) at $125.40 down 2.1% while Meta (META) $513.33 and Apple (AAPL) $224.80 posted smaller declines. Chip supply chain stress — highlighted by AMD $146.36 and ARM Holdings (ARM) $125.32 — and the brutal move in Super Micro (SMCI) $44.35 pressured confidence in immediate AI hardware cadence. Enterprise Software and cloud infrastructure names may see selective re-pricing as investors separate durable AI spending leaders like Microsoft (MSFT) $404.98 from more cyclical infrastructure suppliers, creating tactical opportunities in software exposure while waiting for clearer visibility on equipment demand.

US Stock Sector Overview

Sector	1D	5D	20D	vs 50MA
Mag 7 (AI Spenders)	-1.2%	-1.1%	+0.6%	BELOW
Chip Supply Chain	-2.2%	-1.3%	+1.3%	BELOW
Infrastructure	-4.2%	-3.8%	-3.5%	ABOVE
Enterprise Software	-1.7%	-1.3%	+5.4%	ABOVE
Finance	-0.1%	+1.6%	+3.5%	ABOVE
Healthcare	-0.2%	+0.6%	+8.5%	ABOVE
Retail	-1.2%	+0.9%	+9.0%	ABOVE
IT Services	-0.5%	+1.7%	+4.2%	ABOVE
Airlines	-1.4%	+0.2%	-2.5%	BELOW
Hospitality & Travel	+0.2%	+2.4%	+5.3%	BELOW
Food & Restaurant	-2.1%	+1.2%	+17.2%	ABOVE
Logistics	-0.1%	+0.5%	-1.0%	BELOW
Industrial	-0.7%	+2.1%	+2.9%	ABOVE
Cybersecurity	-1.2%	-1.0%	+13.4%	ABOVE
Chip Equipment	-1.2%	-3.2%	-1.4%	BELOW
Data Center REITs	-0.4%	-0.5%	-0.3%	BELOW
Utilities	+0.2%	+0.1%	+0.4%	ABOVE
Energy	-0.8%	+0.9%	-1.4%	BELOW
Defense & Aerospace	+1.3%	+1.6%	+2.6%	ABOVE
Telecom	-0.1%	+1.9%	+3.7%	ABOVE
Media & Entertainment	-1.6%	-0.6%	+2.8%	BELOW
Biotech	+1.4%	+2.5%	+0.8%	ABOVE
Materials	-0.1%	+1.6%	+0.3%	ABOVE
Analog & Embedded Chips	-1.7%	+0.7%	+1.0%	BELOW

Sector Strength

Biotech +1.4% 20d: +0.8%

Gilead (GILD) +2.0% (20d: +2.7%), Amgen (AMGN) +0.8% (20d: -1.1%)

Defense & Aerospace +1.3% 20d: +2.6%

General Dynamics (GD) +2.2% (20d: +1.1%), RTX Corp (RTX) +1.1% (20d: +4.1%), Lockheed Martin (LMT) +0.6% (20d: +2.8%)

Sector Warnings

Infrastructure -4.2% 20d: -3.5%

Super Micro (SMCI) -19.0% (20d: -34.0%) [<50MA], Cisco (CSCO) -1.7% (20d: +5.2%), Hewlett Packard Enterprise (HPE) -0.5% (20d: -0.4%) [<50MA]

Chip Supply Chain -2.2% 20d: +1.3%

ARM Holdings (ARM) -4.5% (20d: +3.1%) [<50MA], AMD -2.8% (20d: +10.4%) [<50MA], Intel (INTC) -2.3% (20d: -32.1%) [<50MA]

Food & Restaurant -2.1% 20d: +17.2%

Starbucks (SBUX) -3.3% (20d: +27.6%), McDonald's (MCD) -0.9% (20d: +6.8%)

Enterprise Software -1.7% 20d: +5.4%

ServiceNow (NOW) -2.1% (20d: +0.3%), Salesforce (CRM) -2.0% (20d: +2.3%), Palantir (PLTR) -1.6% (20d: +16.4%)

Analog & Embedded Chips -1.7% 20d: +1.0%

Microchip Technology (MCHP) -1.9% (20d: -5.4%) [<50MA], Texas Instruments (TXN) -1.4% (20d: +7.5%)

Sector Deep Dive

Infrastructure: The Infrastructure sector suffered the largest one-day decline, down 4.2%, led by Super Micro (SMCI) which tumbled 19.0% to $44.35. The 50-day context shows the sector flagged as ABOVE overall but the intraday damage highlights idiosyncratic risk among suppliers; investors should watch 50-day trend signals for individual names. Today's price action suggests supply-chain or guidance concerns that could pressure other mid-cap suppliers in the near term despite the sector's longer-term above-50MA posture.

Chip Supply Chain: Chip Supply Chain fell 2.2% with ARM Holdings (ARM) down 4.5% to $125.32 and AMD dropping 2.8% to $146.36, leaving the sector below its 50-day reference. The 50-day-focused read shows weakening price leadership after recent gains, and the group's -1.3% five-day performance implies near-term distribution. Traders should be cautious on leverage to cyclical hardware demand until 50-day trends for key suppliers firm up.

Biotech: Biotech was a relative outperformer, up 1.4% with Gilead (GILD) rising 2.0% to $74.17 and Amgen (AMGN) up 0.8% to $312.04, and the sector sits above its 50-day anchor. Over a 50-day frame the group has shown resilience, and today’s strength reflects defensive rotation into earnings-light, cash-generative names. For S&P 500-focused portfolios, biotech offers diversification from growth-tech drawdowns while maintaining above-50MA momentum.

Defense & Aerospace: Defense & Aerospace gained 1.3%, paced by General Dynamics (GD) adding 2.2% to $285.51 and RTX Corp (RTX) up 1.1% to $117.12, with the sector above its 50-day level. The 50-day lens shows steady relative strength as investors favor defense exposure amid macro uncertainty. This sector remains constructive for tactical exposure given its above-50MA status and the flight-to-quality characteristic in risk-off days.

Retail & Consumer: Retail was mixed but remains above its 50-day trend despite a notable pullback in Costco (COST) which fell 2.3% to $879.79. Food & Restaurant undercut some gains with Starbucks (SBUX) down 3.3% to $91.14 even though the broader consumer categories show 50-day strength. The 50-day perspective suggests selective trading opportunities: rotate into names holding above their 50-day levels while trimming those breaking down.

Market Breadth Analysis

US stock market breadth analysis shows 14 of 24 sectors trading above their 50-day moving average, while 10 are below. The majority of sectors holding above the 50-day MA indicates healthy medium-term momentum. With 18 sectors positive over 20 days, buying pressure remains broad-based.

Interactive Charts

S&P 500 & NASDAQ 100

50-Day Sector Performance

1-Day vs 5-Day Sector Change

Stock-Level Detail

Mag 7 (AI Spenders) Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
META	$513.33	-0.4%	-2.8%	+3.8%	N/A	ABOVE	5
AAPL	$224.80	-0.7%	+0.9%	+3.8%	N/A	ABOVE	1
MSFT	$404.98	-0.8%	-1.2%	-1.4%	N/A	BELOW	1
GOOG	$163.25	-1.1%	-0.6%	-4.6%	N/A	BELOW	2
AMZN	$170.80	-1.3%	-3.0%	-7.2%	N/A	BELOW	3
TSLA	$205.75	-1.7%	-2.3%	-5.1%	N/A	BELOW	3
NVDA	$125.40	-2.1%	+1.5%	+15.0%	N/A	ABOVE	1

Chip Supply Chain Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
TSM	$164.96	-0.8%	+1.7%	+7.0%	N/A	ABOVE	1
QCOM	$164.68	-1.2%	+1.7%	+4.8%	N/A	BELOW	1
MRVL	$68.07	-1.8%	-0.3%	+8.5%	N/A	ABOVE	1
AVGO	$155.26	-2.0%	-2.6%	+7.6%	N/A	ABOVE	1
INTC	$19.61	-2.3%	-2.4%	-32.1%	N/A	BELOW	3
AMD	$146.36	-2.8%	-3.5%	+10.4%	N/A	BELOW	1
ARM	$125.32	-4.5%	-3.4%	+3.1%	N/A	BELOW	1

Infrastructure Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
VRT	$80.32	+0.4%	+4.9%	+8.8%	N/A	ABOVE	0
DELL	$108.37	-0.3%	+2.4%	+2.9%	N/A	ABOVE	1
HPE	$18.09	-0.5%	+1.2%	-0.4%	N/A	BELOW	3
CSCO	$47.54	-1.7%	-0.7%	+5.2%	N/A	ABOVE	2
SMCI	$44.35	-19.0%	-26.7%	-34.0%	N/A	BELOW	3

Enterprise Software Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
ADBE	$560.54	-1.3%	+0.6%	+2.6%	N/A	ABOVE	1
PLTR	$30.36	-1.6%	-4.9%	+16.4%	N/A	ABOVE	5
CRM	$255.23	-2.0%	+0.1%	+2.3%	N/A	ABOVE	2
NOW	$162.82	-2.1%	-0.8%	+0.3%	N/A	ABOVE	1

Finance Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
JPM	$212.37	+0.5%	+2.2%	+6.4%	N/A	ABOVE	0
GS	$483.26	-0.8%	+1.1%	+0.6%	N/A	ABOVE	3

Healthcare Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
UNH	$562.57	+0.2%	+1.7%	+2.8%	N/A	ABOVE	0
LLY	$937.18	-0.6%	-0.5%	+14.2%	N/A	ABOVE	1

Retail Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
WMT	$74.90	-0.1%	+0.7%	+9.3%	N/A	ABOVE	1
COST	$879.79	-2.3%	+1.2%	+8.7%	N/A	ABOVE	1

IT Services Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
IBM	$189.47	-0.1%	+1.3%	+5.6%	N/A	ABOVE	1
ACN	$324.60	-0.9%	+2.1%	+2.8%	N/A	ABOVE	1

Airlines Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
DAL	$39.52	-0.9%	+0.7%	-2.6%	N/A	BELOW	3
UAL	$41.33	-1.9%	-0.3%	-2.5%	N/A	BELOW	3

Hospitality & Travel Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
BKNG	$153.43	+0.4%	+3.5%	+6.4%	N/A	ABOVE	0
MAR	$223.74	-0.1%	+1.4%	+4.2%	N/A	BELOW	1

Food & Restaurant Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
MCD	$273.82	-0.9%	-0.7%	+6.8%	N/A	ABOVE	1
SBUX	$91.14	-3.3%	+3.1%	+27.6%	N/A	ABOVE	1

Logistics Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
FDX	$229.04	+0.4%	+0.6%	-0.6%	N/A	ABOVE	0
UPS	$114.02	-0.6%	+0.3%	-1.4%	N/A	BELOW	2

Industrial Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
HON	$195.29	-0.5%	+2.4%	+0.8%	N/A	ABOVE	1
CAT	$340.35	-0.8%	+1.7%	+5.0%	N/A	ABOVE	2

Cybersecurity Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
PANW	$175.22	+0.1%	+0.3%	+11.0%	N/A	ABOVE	0
ZS	$193.97	-1.6%	-1.9%	+11.2%	N/A	ABOVE	3
CRWD	$66.05	-2.1%	-1.3%	+17.8%	N/A	BELOW	1

Chip Equipment Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
ASML	$874.62	-0.2%	-2.2%	+0.5%	N/A	BELOW	1
AMAT	$190.06	-1.5%	-3.7%	-1.5%	N/A	BELOW	3
LRCX	$79.14	-1.9%	-3.7%	-3.0%	N/A	BELOW	1

Data Center REITs Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
DLR	$141.66	-0.3%	-0.4%	-1.4%	N/A	BELOW	1
EQIX	$783.54	-0.5%	-0.6%	+0.8%	N/A	ABOVE	3

Utilities Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
DUK	$105.91	+0.7%	+0.5%	+1.0%	N/A	ABOVE	0
SO	$80.98	+0.0%	-0.8%	-1.3%	N/A	ABOVE	0
NEE	$74.94	-0.3%	+0.6%	+1.3%	N/A	ABOVE	2

Energy Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
CVX	$135.54	-0.6%	+0.2%	-3.3%	N/A	BELOW	2
XOM	$109.99	-1.0%	+1.6%	+0.4%	N/A	ABOVE	2

Defense & Aerospace Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA
GD	$285.51	+2.2%	+1.1%	+1.1%	N/A	ABOVE
RTX	$117.12	+1.1%	+2.4%	+4.1%	N/A	ABOVE
LMT	$535.06	+0.6%	+1.2%	+2.8%	N/A	ABOVE

Telecom Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
T	$18.08	+0.9%	+1.6%	+1.8%	N/A	ABOVE	0
VZ	$36.39	+0.1%	+1.5%	+1.6%	N/A	ABOVE	0
TMUS	$194.96	-1.3%	+2.5%	+7.7%	N/A	ABOVE	1

Media & Entertainment Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
DIS	$87.45	-1.6%	-0.5%	-3.8%	N/A	BELOW	2
NFLX	$68.38	-1.7%	-0.7%	+9.4%	N/A	ABOVE	1

Biotech Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
GILD	$74.17	+2.0%	+3.5%	+2.7%	N/A	ABOVE	0
AMGN	$312.04	+0.8%	+1.5%	-1.1%	N/A	ABOVE	0

Materials Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
LIN	$460.77	+0.1%	+2.4%	+4.3%	N/A	ABOVE	0
APD	$263.07	-0.4%	+0.9%	-3.7%	N/A	ABOVE	2

Analog & Embedded Chips Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
TXN	$197.59	-1.4%	+1.9%	+7.5%	N/A	ABOVE	1
MCHP	$75.62	-1.9%	-0.5%	-5.4%	N/A	BELOW	1

Key Stock Movers

Today's biggest movers by absolute percentage change: Super Micro (SMCI) (Infrastructure) fell 19.0% to $44.35. ARM Holdings (ARM) (Chip Supply Chain) fell 4.5% to $125.32. Starbucks (SBUX) (Food & Restaurant) fell 3.3% to $91.14. AMD (Chip Supply Chain) fell 2.8% to $146.36. Costco (COST) (Retail) fell 2.3% to $879.79. These individual stock movements were key drivers of their respective sector performance.

Risk and Opportunity Assessment

No major risk alerts are triggered. In a directionless market, maintaining disciplined position sizing and clear stop-loss levels is key to managing downside risk while staying positioned for breakouts.

US Stock Market Outlook

Looking ahead, elevated alert counts around hardware guidance and chip supply names raise the risk of further dispersion; 14 sectors remain above their 50-day benchmarks while 10 are below, signaling mixed breadth in the S&P 500. The 50-day trend remains the primary filter — trim exposure to names breaking that reference and add selectively to sectors showing above-50MA resilience like Defense & Aerospace and Biotech. Maintain defensive positioning in the near term, favoring high-quality software and selective enterprise exposure while monitoring any confirmed stabilization in chip supply chain and infrastructure 50-day price action.

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