What are the trending U.S. stocks? Top 10 U.S. stock recommendations for 2024

Since the beginning of 2024, the U.S. stock market has performed strongly, with the S&P 500 Index rising by 17.32%, the Nasdaq Index by 17.04%, and the Dow Jones Industrial Average by 9.04%. Although weakening economic indicators have sparked concerns about a recession, corporate earnings data remain robust,S&P 500 IndexEarnings per share (EPS) in the second quarter grew by 11% year-on-year, higher than the 6% growth in the first quarter. The growth rate of technology companies has slowed, but cyclical industries such as energy, finance, and utilities are showing signs of recovery.

Large technology companies remain the primary drivers of the market, with capital expenditure increasing by 52% year-on-year and the scale of stock buybacks doubling to $60 billion. Although short-term market volatility may persist, sectors benefiting from earnings growth and cyclical economic improvements warrant attention as interest rate cuts are implemented.

Overview of the U.S. Stock Market in 2024

Year-to-date in 2024, the S&P 500 Index has risen by 17.32%, the Nasdaq Index by 17.04%, and the Dow Jones Industrial Average by 9.04%. The U.S. economy has demonstrated strong resilience, providing a solid foundation for the stock market.

Through an in-depth analysis of U.S. stock performance in the second quarter, some research institutions believe that although multiple economic indicators have weakened since July, raising widespread concerns about a potential recession, corporate earnings data present a different picture. The earnings per share (EPS) of the S&P 500 Index increased by 11% year-on-year in the second quarter, accelerating from the 6% growth in the first quarter. This trend indicates that corporate profitability has not declined sharply as feared by the market. In contrast, the year-on-year EPS growth of the Nasdaq Index fell from 28% in the first quarter to 13%. Although this growth rate is still relatively high, the significant slowdown reflects investor concerns about high-valuation stocks in a low-growth environment.

Although overall earnings performance remains strong, internal structural differences reveal market concerns and potential pressure points. The slowdown in the growth of technology companies, coupled with high valuations and significant profit-taking, has become a source of market volatility. Lower-end consumption has slowed as consumers seek better value for money, while cyclical industries such as real estate and manufacturing remain in a bottom-adjustment phase. Within the technology sector, there is a trend of slowing growth, with earnings growth in areas such as semiconductors and equipment, as well as software and services, weakening compared to the first quarter. In contrast, cyclical sectors are beginning to recover, with improved earnings growth in industries such as energy, finance, and utilities, signaling signs of recovery in cyclical sectors.

It is worth noting that although the earnings growth of technology stocks has slowed, some large technology companies, including the seven tech giants, remain the primary drivers of cash flow, capital expenditure, and stock buyback activities. Data shows that capital expenditure by these tech giants increased by 52% year-on-year, while the scale of stock buybacks doubled to $60 billion. This indicates that despite the pressure of slowing growth, technology companies remain confident about the future and plan to continue increasing investment inArtificial IntelligenceInvestment in frontier technologies such as AI.

Overall, despite some negative factors, corporate earnings do not show signs of a deep recession. The possibility of future market volatility remains, particularly ahead of key economic events such as the release of non-farm payroll data, presidential election debates, and Federal Open Market Committee (FOMC) meetings. Looking ahead, while the market may experience short-term volatility, the long-term outlook is not pessimistic. As interest rate cuts are implemented, investors should consider gradually shifting towards sectors that benefit from earnings growth and cyclical economic improvements.

Top 10 Recommended U.S. Stocks for 2024

In 2024, U.S. stocks remain under close scrutiny by investors in Australia and around the world. This year, U.S. tech giants continue to play leading roles in their respective fields, driving industry development and innovation. Below is a selection of U.S. companies worthy of investor attention, based on market capitalization, market interest, and analysis and forecasts from Wall Street:

1. NVIDIA(NVDA)

As a leader in AI technology, NVIDIA is a globally recognized pioneer in artificial intelligence and digital twin technologies, focusing on solving complex challenges through accelerated computing. The company has a profound impact in fields such as AI, graphics processing, autonomous driving, and healthcare. Its products include advanced chips, systems, and software, serving a wide user base ranging from gamers to professional developers. Since March 2020, the company's stock price has risen by over 120%, reflecting investor confidence in its long-term growth potential. According to its second-quarter 2024 financial report, the company recorded a quarterly revenue record of $30 billion, a year-on-year increase of 122%, demonstrating significant growth in its data center business. Demand for NVIDIA's AI processors has surged, particularly among cloud service providers and large consumer internet companies that use NVIDIA's GPU chips to train and deploy generative AI applications.

2. Apple (AAPL)

In 2024, Apple Inc. continued to consolidate its leadership in the global technology sector, driving progress in multiple areas, including artificial intelligence, through continuous product innovation and R&D. This year, Apple launched several new products, including the next-generation iPhone 16 series, Apple Watch Series 10, AirPods 4, and new color options for the highly anticipated AirPods Max. Notably, Apple's investments in AI are beginning to yield results; the company introduced Apple Intelligence, a personal intelligence system that integrates powerful generative AI models into the core functionalities of iPhone, iPad, and Mac. Furthermore, Apple introduced new colors and materials across its product line, such as a black titanium finish for the Apple Watch Ultra 2, as well as a new USB-C charging version and various new color options for the AirPods Max. The launch of these new products and technologies will undoubtedly further solidify Apple's leading position in the global technology landscape.

3. Microsoft (MSFT)

Microsoft Corporation has demonstrated strong innovation capabilities and market influence in the technology sector. In 2024, Microsoft's cloud services business experienced robust growth, particularly its Azure cloud platform, where revenue increased by 29% year-over-year, highlighting the company's leading position in cloud computing and AI services. Microsoft also launched a series of AI products and services, including Azure AI and Copilot, which are helping enterprises and developers enhance productivity and innovation. In the second quarter of 2024, Microsoft's financial performance reflected its strong innovation capabilities and market influence in the technology sector. According to data released on Microsoft's official Investor Relations website, the company's total revenue for the quarter reached $62.02 billion, an 18% increase from the same period last year. This growth was driven by the strong performance of the Azure cloud platform, with Azure revenue rising 29% year-over-year, underscoring Microsoft's leadership in cloud computing and AI services.

4. Amazon (AMZN)

In 2024, Amazon.com, Inc. maintained its leadership in global e-commerce and cloud computing. According to its second-quarter 2024 financial report, Amazon's net sales reached $148 billion, a 10% year-over-year increase, while net income surged 100% to $13.5 billion. This growth was attributable to the strong performance of Amazon Web Services (AWS), which grew by 19%, as well as increases in revenue from advertising services and third-party seller services. Despite macroeconomic pressures and competitive challenges, Amazon continues to demonstrate strong competitiveness in the retail and cloud computing sectors.

5. Google (GOOG/GOOGL)

Google's sustained investment in AI, particularly in AI-driven search and cloud services, is gradually translating into new drivers of business growth. Despite competition in the advertising market and regulatory challenges, Google has maintained its leadership in the global technology industry through continuous technological innovation and market expansion. According to its second-quarter 2024 financial report, Alphabet Inc. (Google's parent company) reported total revenue of $84.742 billion, a 14% year-over-year increase, and net income of $23.619 billion, a 29% year-over-year increase, demonstrating the company's robust financial performance.

6. Tesla (TSLA)

In 2024, Tesla made significant strides in expanding its vehicle lineup, advancing artificial intelligence (AI), and developing battery technology, thereby consolidating its future leadership in sustainable transportation. In the second quarter of 2024, Tesla reported revenue of $25.5 billion, a 2% year-over-year increase that exceeded Wall Street expectations. Despite operational challenges, Tesla's energy storage business achieved a record deployment of 9.4 GWh in the second quarter, driving revenue and gross profit growth across the segment. Furthermore, Tesla introduced new Model 3 and Model Y variants and added more paint options for its S3XY lineup to meet market demand. The company also made notable progress in AI and driver-assistance technologies by launching a version of Full Self-Driving (FSD) that relies on eye-tracking software to enhance safety and reduce driver intervention. Additionally, the Tesla Optimus AI-driven robot has begun handling batteries in factories, demonstrating the integrated application of AI in manufacturing processes.

7. Meta Platforms (META)

As a global leader in social media and technological innovation, Meta Platforms is driving the next evolution of social technology. Through platforms such as Facebook, Instagram, and WhatsApp, the company continues to enhance user social experiences and commercial interactions. Meta has made significant advancements in artificial intelligence, launching the open-source AI model Llama 3.1 and integrating it into the Meta AI virtual assistant to improve service intelligence. In the second quarter of 2024, Meta generated $39.07 billion in revenue, a 22% year-over-year increase, reflecting strong growth in advertising revenue and user engagement. The company's ad impressions and average price per ad both increased by 10% year-over-year, indicating the continued growth potential of its advertising business.

8. JPMorgan (JPM)

As one of the world's leading financial services institutions, JPMorgan demonstrated strong performance in investment banking, asset management, and retail banking. According to its second-quarter 2024 financial results, the company achieved robust revenue growth and profitability, with net profit rising significantly year-over-year, reflecting its success in risk management and business diversification. Through technological innovation and strategic investments, JPMorgan continues to strengthen its market competitiveness and actively address global economic challenges.

9. Eli Lilly and Co (LLY)

As a global leading pharmaceutical company, Eli Lilly is renowned for its innovative drugs in the treatment of diabetes, oncology, and neurodegenerative diseases. Its second-quarter 2024 financial report highlighted significant achievements in innovative drug development and market expansion. The company's revenue and profits both increased year-over-year, partly driven by breakthrough therapies in diabetes, oncology, and immunology. Additionally, Eli Lilly made important progress in the weight-loss medication sector, developing new treatment regimens aimed at helping patients manage weight more effectively and improve related health issues. The launch of these new drugs, combined with the company's sustained increase in R&D investment, has accelerated the market entry and clinical trial progress of multiple new medicines, while expanding its global market influence through strategic partnerships.

10. Walmart (WMT)

In 2024, Walmart delivered impressive second-quarter financial results, with revenue reaching $152 billion, a 7.2% year-over-year increase, and net profit climbing to $5.2 billion, a 15% year-over-year rise. Benefiting from the successful execution of its omnichannel retail strategy, the company achieved breakthroughs in e-commerce while maintaining stable in-store sales. This performance reflects Walmart's effective efforts in optimizing customer experience, improving operational efficiency, and expanding its global market presence. Despite industry competition and macroeconomic volatility, Walmart has maintained its leadership in the retail sector through innovation and strategic investments.

How to Trade US Stocks on moomoo?

moomoo is a platform offering trading across global multi-capital markets. Australian investors can trade U.S. stocks on the moomoo platform by following these steps:

1. Open an account: First, you need to open amoomoo trading account. moomoo is a service provided by Futu Securities (Australia) Pty Ltd. It supports 24-hour U.S. stock trading and offers various advanced analytical tools and trading features.

2. Deposit funds: After successfully opening your account, you need to deposit funds into it. moomoo supports multiple funding methods, including ACH transfers and bank wire transfers. You may choose the most suitable funding method based on your circumstances.

3. Currency conversion: If you deposit funds in Australian dollars (AUD), you may need to use the currency conversion feature on the moomoo platform to convert AUD into USD for trading U.S. stocks.

4. Select Order Type: moomoo offers various order types, including limit orders, market orders, and stop-loss orders. You should select the appropriate order type based on your trading strategy.

5. Place an Order: On the moomoo platform, you can trade a wide range of U.S. equity products, including stocks, ETFs, and ADRs. The platform supports multiple order types, such as limit and market orders, as well as pre-market and after-hours trading sessions. There are two common methods for trading U.S. stocks on moomoo, with the specific processes outlined below:

• App > "Account" tab > "Quick Trade" > Enter order details > Select Buy or Sell > Click to unlock trading > Enter trading password to complete the order.

• Stock Details Page > Click “Account” > Enter order information > Select Buy or Sell > Click Unlock Trading > Enter trading password to complete the order.

1. Enjoy Promotional Offers: As a new user, you can enjoy commission-free and platform fee-free trading for Australian and U.S. stocks for the first 180 days. Additionally, users who make deposits may have the opportunity to receive free stock rewards.

2. Fund Security: moomoo client funds are held in custody at HSBC Bank Australia, ensuring the safety of assets. In Australia, all financial service providers are required to hold a financial services license and are regulated by the Australian Securities and Investments Commission (ASIC).

The moomoo platform offersLow-commission trading of U.S. stocksand ETFs, along with free Level 2 real-time market data, catering to investors of all types.

Please note that stock market investments carry risks, and caution is advised. Before making any investment decisions, you should conduct thorough research and consideration based on your investment objectives and risk tolerance.