US Stock Market Sector Analysis – Wednesday, December 31, 2025 Sectors: BEARISH

A broad risk-off tone dominated the US stock market today after headlines around chip supply-chain weakness and a surprising Qualcomm (QCOM) dip weighed on semiconductors and related suppliers. The market closed with 22 of 24 sectors lower and just 10 sectors trading above their 50-day moving average, as the S&P 500 struggled alongside the Magnificent 7, which collectively fell 0.7% on the day. Palantir Technologies (PLTR) also drew attention after the Accenture partnership story, yet PLTR slipped 1.7% as the move failed to spark a sustained bid. TSMC (TSM) bucked the trend, rising 1.4% and emerging as one of the few meaningful winners in chip supply chain names.

Market Condition Dashboard

US 10-Year Treasury Yield

Wait & Watch

4.18%

stable

Impact

Confidence

Crude Oil (WTI)

Neutral

$57.42

-0.9% 1D

Impact

Confidence

VIX (Fear Index)

Normal Range

14.9

+4.3% 1D

Impact

Confidence

200-Day Moving Average

Bullish Trend Intact

0/3 below

SPY above (+9.4%), QQQ above (+10.4%), DIA above (+8.7%)

Impact

Confidence

Tracked Stocks Breadth (50DMA)

Add Cash

52%

35 of 68 above 50DMA · -10.3pp 5D

Impact

Confidence

Put/Call Ratio (5D)

Contrarian Sell Signal

0.69

Too Optimistic · stable

Impact

Confidence

Signal analysis only — not investment advice

Sector Heatmap (1D)

Airlines +0.18%

Telecom -0.06%

Energy -0.24%

Utilities -0.38%

Biotech -0.39%

Retail -0.42%

Media & Entertainment -0.45%

Finance -0.49%

Healthcare -0.54%

Materials -0.59%

Logistics -0.60%

Mag 7 (AI Spenders) -0.67%

Defense & Aerospace -0.68%

Industrial -0.71%

Data Center REITs -0.77%

Chip Supply Chain -0.80%

Enterprise Software -0.93%

Infrastructure -1.00%

Food & Restaurant -1.00%

AI Networking & Interconnect -1.01%

AI Power & Grid -1.02%

EDA & Semiconductor IP -1.12%

Hospitality & Travel -1.25%

IT Services -1.28%

Chip Equipment -1.29%

Analog & Embedded Chips -1.30%

Cybersecurity -1.32%

Memory & Storage -1.87%

≤-3%0≥+3%

Sector Performance (Base=100)

AI and Technology Sector Analysis

The AI investment theme showed mixed internals with Magnificent 7 names acting as ballast rather than engines of upside: NVIDIA (NVDA) $186.27 is modestly positive on the 20-day but the group’s 1-day weakness underscores profit-taking into year-end. Supply-chain headlines, led by Qualcomm (QCOM) $169.33 down 1.5%, highlight continued vulnerability in chip suppliers even as TSMC (TSM) $302.33 gained. Infrastructure and enterprise software remain key to monetizing AI — PLTR $177.75 and IBM $292.38 trade lower into a period where customers will decide capex for data centers and software adoption.

US Stock Sector Overview

Sector	1D	5D	20D	vs 50MA
Mag 7 (AI Spenders)	-0.7%	-1.8%	+0.3%	ABOVE
Chip Supply Chain	-0.8%	-0.3%	-6.7%	BELOW
Memory & Storage	-1.9%	-3.3%	+15.4%	ABOVE
EDA & Semiconductor IP	-1.1%	-1.6%	-9.3%	BELOW
Infrastructure	-1.0%	-2.4%	-4.1%	BELOW
AI Networking & Interconnect	-1.0%	-1.8%	+2.7%	BELOW
Enterprise Software	-0.9%	-2.1%	+1.0%	BELOW
Finance	-0.5%	-2.8%	+4.2%	ABOVE
Healthcare	-0.5%	+0.3%	+0.9%	BELOW
Retail	-0.4%	-0.6%	-4.5%	BELOW
IT Services	-1.3%	-1.7%	-1.9%	BELOW
Airlines	+0.2%	-2.4%	+3.0%	ABOVE
Hospitality & Travel	-1.3%	-1.6%	+3.7%	ABOVE
Food & Restaurant	-1.0%	-1.4%	-2.0%	BELOW
Logistics	-0.6%	-1.9%	+4.2%	ABOVE
Industrial	-0.7%	-1.4%	-1.2%	BELOW
Cybersecurity	-1.3%	-1.8%	-7.7%	BELOW
Chip Equipment	-1.3%	-2.3%	-0.8%	ABOVE
Data Center REITs	-0.8%	+0.3%	+1.1%	BELOW
AI Power & Grid	-1.0%	-1.9%	-2.4%	BELOW
Utilities	-0.4%	-0.1%	-2.5%	BELOW
Energy	-0.2%	+1.1%	+1.3%	ABOVE
Defense & Aerospace	-0.7%	-1.5%	+5.6%	ABOVE
Telecom	-0.1%	+1.3%	-1.5%	BELOW
Media & Entertainment	-0.5%	-0.2%	-0.7%	BELOW
Biotech	-0.4%	-2.2%	-3.2%	ABOVE
Materials	-0.6%	+0.4%	-0.5%	BELOW
Analog & Embedded Chips	-1.3%	-2.3%	-2.3%	ABOVE

Sector Warnings

Memory & Storage -1.9% 20d: +15.4%

Micron (MU) -2.5% (20d: +21.9%), Western Digital (WDC) -2.2% (20d: +10.8%), Seagate (STX) -1.7% (20d: +6.7%)

Cybersecurity -1.3% 20d: -7.7%

CrowdStrike (CRWD) -1.4% (20d: -10.6%) [<50MA], Palo Alto Networks (PANW) -1.4% (20d: -4.9%) [<50MA], Zscaler (ZS) -1.1% (20d: -7.7%) [<50MA]

Analog & Embedded Chips -1.3% 20d: -2.3%

Microchip Technology (MCHP) -1.5% (20d: +0.2%), Analog Devices (ADI) -1.3% (20d: -2.2%), Texas Instruments (TXN) -1.1% (20d: -5.0%)

Chip Equipment -1.3% 20d: -0.8%

KLA (KLAC) -2.3% (20d: +0.3%), Lam Research (LRCX) -1.5% (20d: +7.2%), Applied Materials (AMAT) -1.1% (20d: -4.3%)

IT Services -1.3% 20d: -1.9%

International Business Machines (IBM) -1.9% (20d: -2.1%) [<50MA], Accenture (ACN) -0.6% (20d: -1.7%)

Sector Deep Dive

Chip Supply Chain: The sector fell 0.9% on the day and is down 8.8% over 20 days, sitting below its 50-day moving average by 5.9% — a clear contraction in momentum. Qualcomm (QCOM) $169.33 led headline weakness with a 1.5% drop, while Marvell (MRVL) $84.86 declined 2.1%, signaling investor caution around demand for connectivity and AI-specific silicon. TSMC (TSM) $302.33 was a notable outperformer, up 1.4%, but the broader 50-day trend shows the group losing steam and needing fresh demand signals to reassert growth.

Enterprise Software & IT Services: Enterprise Software slid 0.9% today and is 2.8% higher over 20 days but remains 5.5% below its 50-day moving average, indicating the sector is testing a corrective phase. Palantir Technologies (PLTR) $177.75 fell 1.7% despite partnership headlines with Accenture, reflecting skepticism about near-term monetization. IBM $292.38 drove IT Services weakness with a 1.9% decline; the 50-day context shows software and services stocks struggling to reclaim trend leadership as buyers await clearer spending cycles.

Cybersecurity & Infrastructure: Cybersecurity led the list of longer-term red flags, down 16.2% over 50 days and sliding 1.3% today, which triggered a high alert for risk managers. Infrastructure fell 1.0% and is down 11.4% versus its 50-day moving average, placing it among three sectors with steep 50-day declines. These 50-day trends suggest defensive positioning and that capital is rotating away from longer-duration tech infrastructure projects into cash-preserving strategies across corporates.

Media, Entertainment & Consumer: Media & Entertainment dropped 0.5% and sits 12.1% below its 50-day moving average, a sign that advertising and content cyclicality are pressuring valuations. Retail and Food & Restaurant also showed softness; Retail is 1.4% below its 50-day and Food & Restaurant is 0.6% below, with both sectors easing as discretionary spending narratives are questioned heading into the new year. The S&P 500 breadth reflects these sector-level divergences, reinforcing selective stock picking within consumer names.

Market Breadth Analysis

US stock market breadth analysis shows 11 of 28 sectors trading above their 50-day moving average, while 17 are below. With the majority of sectors below the 50-day MA, medium-term momentum is deteriorating. The 20-day breadth shows 16 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

HIGH Cybersecurity down -16.2% over 50 days

HIGH 3 sectors declining >5% over 20 days: Chip Supply Chain, EDA & Semiconductor IP, Cybersecurity

HIGH 5 sectors declining >10% over 50 days: EDA & Semiconductor IP, Infrastructure, Enterprise Software, Cybersecurity, Media & Entertainment

Stock-Level Detail

Mag 7 (AI Spenders) Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
GOOG	$313.39	-0.2%	-0.6%	-2.1%	+24.9%	ABOVE	1
AAPL	$271.12	-0.4%	-0.7%	-4.3%	+3.6%	BELOW	2
NVDA	$186.27	-0.6%	-1.1%	+3.9%	+3.0%	ABOVE	3
AMZN	$230.82	-0.7%	-0.7%	-0.7%	+4.0%	BELOW	1
MSFT	$480.57	-0.8%	-0.9%	+1.2%	-6.4%	BELOW	1
META	$658.91	-0.9%	-1.1%	+3.3%	-9.9%	ABOVE	1
TSLA	$449.72	-1.0%	-7.4%	+0.7%	+1.6%	ABOVE	6

Chip Supply Chain Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
TSM	$302.33	+1.4%	+1.7%	+3.1%	+3.5%	ABOVE	0
AMD	$214.16	-0.5%	-0.4%	-1.6%	-10.0%	BELOW	2
AVGO	$344.83	-1.1%	-1.2%	-8.9%	+1.2%	BELOW	1
INTC	$36.90	-1.1%	+2.0%	-15.7%	-3.2%	BELOW	1
QCOM	$169.33	-1.5%	-2.1%	-1.8%	+1.8%	BELOW	1
MRVL	$84.86	-2.1%	-1.7%	-15.2%	+0.9%	BELOW	1

Memory & Storage Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
SNDK	$237.38	-1.2%	-5.1%	+22.1%	+59.0%	ABOVE	4
STX	$274.71	-1.7%	-3.5%	+6.7%	+28.7%	ABOVE	3
WDC	$172.14	-2.2%	-4.1%	+10.8%	+42.0%	ABOVE	3
MU	$285.25	-2.5%	-0.4%	+21.9%	+41.1%	ABOVE	2

EDA & Semiconductor IP Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
CDNS	$312.58	-1.0%	-1.6%	-7.0%	-6.3%	BELOW	3
SNPS	$469.72	-1.0%	-1.3%	+0.7%	+2.3%	ABOVE	2
ARM	$109.31	-1.4%	-2.0%	-21.5%	-35.5%	BELOW	1

Infrastructure Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
HPE	$23.80	-0.2%	-1.7%	+8.6%	+3.8%	ABOVE	3
CSCO	$75.92	-0.5%	-1.3%	-0.9%	+8.9%	ABOVE	3
SMCI	$29.27	-1.3%	-4.2%	-13.1%	-46.6%	BELOW	3
VRT	$161.94	-1.4%	-2.9%	-9.4%	-7.3%	BELOW	3
DELL	$124.74	-1.6%	-1.9%	-5.8%	-15.8%	BELOW	1

AI Networking & Interconnect Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
APH	$134.67	-0.8%	-2.0%	-2.3%	+8.8%	BELOW	4
ANET	$131.03	-1.1%	+0.2%	+2.5%	-10.2%	BELOW	2
COHR	$184.57	-1.2%	-3.6%	+8.0%	+52.8%	ABOVE	3

Enterprise Software Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
CRM	$263.57	-0.4%	-0.1%	+11.2%	+0.7%	ABOVE	2
NOW	$153.19	-0.7%	+0.4%	-8.0%	-18.6%	BELOW	2
ADBE	$349.99	-0.7%	-0.8%	+7.1%	-2.1%	ABOVE	3
ORCL	$193.05	-1.2%	-1.3%	-6.2%	-29.2%	BELOW	1
PLTR	$177.75	-1.7%	-8.5%	+0.9%	-2.1%	BELOW	4

Finance Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
JPM	$317.71	-0.4%	-2.1%	+3.2%	+8.5%	ABOVE	4
GS	$870.56	-0.6%	-3.5%	+5.1%	+16.4%	ABOVE	4

Healthcare Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
LLY	$1069.51	-0.5%	-0.2%	+4.0%	+34.6%	ABOVE	1
UNH	$325.70	-0.6%	+0.8%	-2.2%	-9.0%	BELOW	1

Retail Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
COST	$858.55	-0.4%	-1.1%	-6.5%	-7.9%	BELOW	3
WMT	$110.71	-0.5%	-0.2%	-2.4%	+5.1%	ABOVE	2

IT Services Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
ACN	$262.88	-0.6%	-0.6%	-1.7%	+7.1%	ABOVE	2
IBM	$290.30	-1.9%	-2.7%	-2.1%	+5.6%	BELOW	2

Airlines Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
UAL	$111.82	+0.3%	-2.6%	+3.1%	+11.7%	ABOVE	0
DAL	$68.86	+0.1%	-2.2%	+2.8%	+11.4%	ABOVE	0

Hospitality & Travel Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
MAR	$308.40	-1.2%	-1.6%	+1.2%	+15.8%	ABOVE	3
BKNG	$213.19	-1.3%	-1.7%	+6.3%	+1.5%	ABOVE	2

Food & Restaurant Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
MCD	$301.88	-0.8%	-2.5%	-0.7%	-0.0%	BELOW	4
SBUX	$82.71	-1.2%	-0.4%	-3.3%	-1.3%	BELOW	2

Logistics Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
UPS	$94.69	-0.5%	-1.5%	+1.0%	+14.6%	ABOVE	4
FDX	$230.96	-0.8%	-2.4%	+7.4%	+19.6%	ABOVE	3

Industrial Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
HON	$201.87	-0.6%	-0.9%	+0.8%	-0.4%	BELOW	3
CAT	$569.39	-0.8%	-1.9%	-3.1%	+9.2%	ABOVE	4

Cybersecurity Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
ZS	$224.92	-1.1%	-2.0%	-7.7%	-27.5%	BELOW	3
PANW	$184.20	-1.4%	-1.6%	-4.9%	-14.1%	BELOW	1
CRWD	$117.19	-1.4%	-1.8%	-10.6%	-7.0%	BELOW	3

Chip Equipment Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
ASML	$1064.74	-0.2%	+0.4%	-6.2%	+4.6%	ABOVE	1
AMAT	$256.08	-1.1%	-1.5%	-4.3%	+13.9%	ABOVE	2
LRCX	$170.85	-1.5%	-3.5%	+7.2%	+18.2%	ABOVE	3
KLAC	$121.06	-2.3%	-4.8%	+0.3%	+6.1%	ABOVE	3

Data Center REITs Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
EQIX	$754.65	-0.5%	+1.0%	+4.6%	-6.2%	BELOW	1
DLR	$152.65	-1.1%	-0.3%	-2.3%	-9.1%	BELOW	1

AI Power & Grid Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
ETN	$315.87	-0.7%	-1.6%	-5.1%	-14.5%	BELOW	4
VST	$160.88	-0.8%	-0.4%	-5.9%	-13.4%	BELOW	1
GEV	$652.36	-0.9%	-2.1%	+8.6%	+11.7%	ABOVE	2
CEG	$351.71	-1.1%	-2.9%	-2.2%	-1.4%	BELOW	4
PWR	$421.80	-1.6%	-2.7%	-7.4%	-3.5%	BELOW	5

Utilities Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
NEE	$79.16	-0.3%	-0.2%	-5.5%	-3.8%	BELOW	1
DUK	$114.22	-0.4%	-0.2%	-1.2%	-7.9%	BELOW	1
SO	$85.11	-0.4%	+0.0%	-0.9%	-9.4%	BELOW	1

Energy Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
CVX	$148.27	+0.1%	+1.3%	+0.5%	+0.2%	ABOVE	0
XOM	$117.97	-0.5%	+0.9%	+2.2%	+7.7%	ABOVE	1

Defense & Aerospace Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
RTX	$181.43	-0.3%	-1.6%	+8.9%	+6.4%	ABOVE	4
GD	$332.28	-0.8%	-2.5%	-0.4%	-1.2%	BELOW	4
LMT	$478.01	-0.9%	-0.4%	+8.3%	-0.4%	ABOVE	2

Telecom Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
T	$23.98	+0.1%	+0.7%	-1.9%	-4.6%	BELOW	0
VZ	$38.78	+0.1%	+1.0%	+0.1%	+1.1%	ABOVE	0
TMUS	$200.98	-0.4%	+2.0%	-2.6%	-10.9%	BELOW	1

Media & Entertainment Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
NFLX	$93.76	-0.0%	+0.1%	-9.8%	-24.5%	BELOW	3
DIS	$112.90	-0.9%	-0.6%	+8.3%	+0.2%	ABOVE	1

Biotech Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
GILD	$121.25	-0.4%	-2.3%	-1.2%	-0.4%	ABOVE	2
AMGN	$320.75	-0.4%	-2.0%	-5.2%	+9.5%	ABOVE	4

Materials Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
LIN	$423.62	-0.5%	+0.4%	+4.2%	-4.9%	ABOVE	1
APD	$242.20	-0.7%	+0.5%	-5.1%	-3.0%	BELOW	1

Analog & Embedded Chips Show individual tickers

Ticker	Price	1D	5D	20D	50D	vs 50MA	Down Days
TXN	$170.62	-1.1%	-2.1%	-5.0%	-3.2%	ABOVE	4
ADI	$269.61	-1.3%	-2.3%	-2.2%	+10.5%	ABOVE	4
MCHP	$62.65	-1.5%	-2.5%	+0.2%	-4.8%	ABOVE	1

Key Stock Movers

Today's biggest movers by absolute percentage change: Micron (MU) (Memory & Storage) fell 2.5% to $285.25. KLA (KLAC) (Chip Equipment) fell 2.3% to $121.06. Western Digital (WDC) (Memory & Storage) fell 2.2% to $172.14. Marvell (MRVL) (Chip Supply Chain) fell 2.1% to $84.86. International Business Machines (IBM) (IT Services) fell 1.9% to $290.30. These individual stock movements were key drivers of their respective sector performance.

Risk and Opportunity Assessment

On the risk side, 3 high-severity alerts are currently active, signaling significant sector declines that warrant portfolio risk management attention. Consider reducing exposure to affected sectors and tightening stop-loss levels.

US Stock Market Outlook

Near-term breadth is weak: only 10 of 24 sectors trade above their 50-day moving average and active alerts flag Cybersecurity and three sectors with >10% 50-day declines. With 22 sectors down today and the Magnificent 7 underperforming as a group, expect choppy action and rotational trades into higher-quality cyclicals that remain above their 50-day lines. Positioning should be tactical — trim exposure to pressured infrastructure and cybersecurity names while selectively adding to resilient leaders that maintain positive 50-day trends and clear earnings visibility.

Hypothetical Portfolio

SIMULATION

Value $98,592

P&L -1.41%

Today -0.70%

View full portfolio → Simulation only. Not investment advice.

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