A 'rollercoaster of extremes' farce in capital

On December 4, 2025, the U.S. stock market once again staged a comically dramatic scene of divergence. The Dow Jones Industrial Average, the Nasdaq Composite, and the S&P 500 all closed up, giving the appearance of a thriving market. However, beneath the surface, there was a strong undercurrent of disparity, with technology stocks and traditional industry stocks experiencing a 'fire and ice' contrast that left investors dazzled and made people question this so-called 'market prosperity.'

In this drama of divergence, technology stocks were undoubtedly the most dazzling 'partygoers.' Tesla rose more than 4%, Oracle rose over 3%, as if simply having the 'tech' label guaranteed a slice of the feast. Cryptocurrency-related stocks were even more frenzied, with Coinbase and Kaiser Aluminum climbing over 5%. Bitcoin surged past $94,000, up 3.12% intraday, and Ethereum jumped over 7.22%, as if trying to break through the sky.

However, behind this celebration lies enormous bubbles and risks. Tech stock valuations have long been sky-high, with many companies’ stock prices far removed from their actual value. Investors seem to have forgotten that competition in the tech sector is fierce and technology evolves at a lightning pace; a company that shines today may be overshadowed tomorrow by the launch of a new product. As for cryptocurrencies, their price swings are so extreme they are like a roller coaster, making investors' hearts race. This tech stock frenzy resembles more of a feast for capital, and ordinary investors could very well end up being the 'cannon fodder' at this extravagant banquet.

In stark contrast to the frenzy surrounding tech stocks, traditional industry stocks seem to have been relegated to the 'cold palace.' Microsoft fell more than 2%, and Nvidia dropped 1%. These giants, which once dominated the market, now appear so desolate. The Nasdaq China Golden Dragon Index showed weak performance, closing down 1.37%, and Chinese concept stocks such as Canadian Solar, Hyt Network, and JinkoSolar suffered heavy losses, seemingly abandoned mercilessly by the market.

The plight of traditional industry stocks is actually not hard to understand. Against the backdrop of a global economic transformation, traditional industries are facing unprecedented challenges. The rise of emerging technologies is continually eroding the market share of traditional sectors. Investors also seem more willing to put their capital into tech stocks with high growth potential, rather than into traditional industry stocks, which grow slowly and might even decline. However, this doesn't mean that traditional industry stocks have no investment value. In fact, many of these stocks still have stable cash flow and lower valuations, making them a good choice for investors seeking steady returns. It's just that in this era of tech stock mania, they seem to have been forgotten by the market.

The divergence in the U.S. stock market essentially reflects the capital's natural tendency to pursue profit. Behind the tech stock frenzy is capital's fierce chase for high growth and high returns; behind the neglect of traditional sector stocks is capital's avoidance of risk and uncertainty. This divergence not only reflects investors’ different views on the prospects of various industries and companies but also highlights the dominant role of capital in the market.

However, this divergence also brings many problems. It increases market volatility, making it harder for investors to grasp market trends; it also exacerbates market inequality, making it more difficult for ordinary investors without sufficient funds or information to compete. More importantly, it may obscure the real risks in the market, causing investors to lose direction amid the frenzy.

The divergence in the U.S. stock market is a 'bipolar drama' of capital. In this drama, we witness the frenzy and bubble of tech stocks as well as the neglect and difficulties of traditional industry stocks. However, no matter how the market diverges, we should maintain a clear mind, rationally assess market trends, not be swayed by momentary euphoria, nor be defeated by temporary setbacks. After all, in the market of capital, only those who can see the truth and seize opportunities will ultimately emerge as winners.