Stock Market Recap and Winning ETFs from Last Week
Welcome back to our weekly Wall Street update! Last week was a rollercoaster ride for the stock market, with the S&P 500, Dow Jones, and Nasdaq all posting gains. The U.S. treasury yield saw some fluctuations throughout the week, ending on a slightly lower note.
One of the key drivers of market sentiment last week was the Fed’s announcement regarding the balance sheet tightening process and the release of disappointing jobs data. This combination led to speculation about potential rate cuts in the near future, impacting bond yields.
On the earnings front, tech giants like Apple and Amazon delivered solid results, exceeding expectations and fueling optimism in the market. The focus on AI growth and investments was a common theme in many corporate commentaries, highlighting the significance of this technology in today’s business landscape.
In the commodities space, the decline in crude oil prices was notable, with factors like weak demand growth and increased U.S. output contributing to the drop. This had implications for oil-related ETFs, including the United States Oil Fund LP.
Despite the market volatility, there were some bright spots in the world of leveraged ETFs last week. Let’s take a closer look at some of the top performers:
1. Direxion Daily S&P Biotech Bull 3x Shares (LABU) – Up 24.55%
The fall in treasury yields boosted growth stocks and biotech technology, driving gains in this ETF. With novel drug launches and favorable market conditions, the biotech sector appears poised for further growth.
2. Direxion Daily Electric and Autonomous Vehicles Bull 2X Shares (EVAV) – Up 22.9%
Electric vehicle stocks have been trending higher, with companies like Tesla and Nio seeing strong sales growth. The partnership between auto and tech companies for AI advancements is also a positive development for this ETF.
3. T-Rex 2X Long Apple Daily Target ETF (AAPX) – Up 16.8%
Apple’s impressive earnings results and strategic initiatives, including a record share buyback program, propelled the stock higher. The upcoming events focused on AI could further drive gains in this ETF.
4. Direxion Daily FTSE China Bull 3X Shares (YINN) – Up 16.5%
Despite challenges last year, Chinese equities are seeing a resurgence this year, driven by factors like compelling valuations and the AI boom. The collaboration between foreign and Chinese companies in smart car technology is also contributing to the sector’s growth.
5. AdvisorShares MSOS 2x Daily ETF (MSOX) – Up 14.1%
The reclassification of marijuana by the U.S. Department of Justice provided a boost to cannabis companies, signaling potential advantages in the industry. This news had a positive impact on this ETF’s performance.
Overall, last week’s market activity was marked by a mix of positive earnings reports, economic data, and geopolitical developments. As always, it’s important for investors to stay informed and adapt to changing market conditions. If you want to receive the latest ETF news and analysis directly in your inbox, be sure to sign up for Zacks’ free Fund Newsletter. Stay tuned for more updates next week!
