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Wall Street was moderately upbeat last week, with the S&P 500, the Dow Jones and the Russell 2000 adding about 0.6%, 1.5% and 0.8%, respectively, and the Nasdaq Composite remaining flat. The benchmark U.S. treasury yield was 4.25% on Jun 21, 2024 versus 4.20% recorded at the start of the week.
Last week, in a historic milestone, NVIDIA (NVDA - Free Report) rallied further to become the world's most valuable company, topping Microsoft (MSFT - Free Report) . The artificial intelligence (AI) chipmaker topped $3.33 trillion in market value on Jun 18 compared with the software giant's $3.31 trillion market cap.
Meanwhile, U.S. retail sales that released last week were weaker than expected in May. Sales rose just 0.1% sequentially, one-tenth of a percentage point below the Dow Jones estimate. However, the result was slightly better than the downwardly revised 0.2% decline in April. Such soft retail sales boosted the probability of a sooner-than-expected Fed rate cut (read: 3 ETF Areas & Stocks to Win Despite Soft Retail Sales in May).
On the housing data front, U.S. homebuilder confidence in the market for newly built single-family homes fell to 43 in June, down two points from May. This marks the lowest reading since December 2023. Sales of existing homes in the United States fell for three successive months in May while prices hit another record (read: Pain or Gain Ahead of Homebuilding ETFs?).
Against this backdrop, below we highlight a few winning inverse/leveraged ETF areas of last week.
Mexican shares gained last week as president-elect Claudia Sheinbaum named new key cabinet members, including Marcelo Ebrard, as the new economy minister, which restored investors’ confidence in the economy. Plus, last week saw the release of April's domestic retail sales, which breezed past expectations.
Like several occasional trading before, cannabis stocks probably rallied last week as the U.S. Department of Justice recently launched a historic proposal to ease restrictions on marijuana. Under the proposal, cannabis would be reclassified from a so-called Schedule I drug (considered highly addictive with no medical benefits) to a Schedule III (which has moderate to low chances for physical and psychological dependence).
Inverse/Leveraged
ProShares UltraShort Bloomberg Natural Gas (KOLD - Free Report) – Up 8.8%
U.S. natural gas prices declined due to increased production. Rising production from the Appalachian region made up for the tailwind received from extreme heat (and the resultant higher cooling demand), driving natural gas prices lower.
Chip behemoth NVIDIA witnessed a volatile week, initially reaching all-time highs and then meeting with a reversal. The stock was down 2.5% last week. Profit booking probably weighed on this high-momentum and high-growth stock last week.
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4 Best Inverse/Leveraged ETF Areas of Last Week
Wall Street was moderately upbeat last week, with the S&P 500, the Dow Jones and the Russell 2000 adding about 0.6%, 1.5% and 0.8%, respectively, and the Nasdaq Composite remaining flat. The benchmark U.S. treasury yield was 4.25% on Jun 21, 2024 versus 4.20% recorded at the start of the week.
Last week, in a historic milestone, NVIDIA (NVDA - Free Report) rallied further to become the world's most valuable company, topping Microsoft (MSFT - Free Report) . The artificial intelligence (AI) chipmaker topped $3.33 trillion in market value on Jun 18 compared with the software giant's $3.31 trillion market cap.
However, NVIDIA’s ascent was short-lived and profit booking dragged down the company by the end of the week. NVIDIA was down 2.5% last week (read: ETFs to Tap as NVIDIA Becomes the Most Valuable Company).
Meanwhile, U.S. retail sales that released last week were weaker than expected in May. Sales rose just 0.1% sequentially, one-tenth of a percentage point below the Dow Jones estimate. However, the result was slightly better than the downwardly revised 0.2% decline in April. Such soft retail sales boosted the probability of a sooner-than-expected Fed rate cut (read: 3 ETF Areas & Stocks to Win Despite Soft Retail Sales in May).
On the housing data front, U.S. homebuilder confidence in the market for newly built single-family homes fell to 43 in June, down two points from May. This marks the lowest reading since December 2023. Sales of existing homes in the United States fell for three successive months in May while prices hit another record (read: Pain or Gain Ahead of Homebuilding ETFs?).
Against this backdrop, below we highlight a few winning inverse/leveraged ETF areas of last week.
ETFs in Focus
Leveraged Mexico
Direxion Daily MSCI Mexico Bull 3X Shares (MEXX - Free Report) – Up 9.5%
Mexican shares gained last week as president-elect Claudia Sheinbaum named new key cabinet members, including Marcelo Ebrard, as the new economy minister, which restored investors’ confidence in the economy. Plus, last week saw the release of April's domestic retail sales, which breezed past expectations.
Leveraged Cannabis
AdvisorShares MSOS 2x Daily ETF (MSOX - Free Report) – Up 9.4%
Like several occasional trading before, cannabis stocks probably rallied last week as the U.S. Department of Justice recently launched a historic proposal to ease restrictions on marijuana. Under the proposal, cannabis would be reclassified from a so-called Schedule I drug (considered highly addictive with no medical benefits) to a Schedule III (which has moderate to low chances for physical and psychological dependence).
Inverse/Leveraged
ProShares UltraShort Bloomberg Natural Gas (KOLD - Free Report) – Up 8.8%
U.S. natural gas prices declined due to increased production. Rising production from the Appalachian region made up for the tailwind received from extreme heat (and the resultant higher cooling demand), driving natural gas prices lower.
Inverse/Leveraged NVIDIA
T-Rex 2X Inverse NVIDIA Daily Target ETF (NVDQ - Free Report) – Up 7.7%
T-Rex 2X Inverse NVIDIA Daily Target ETF (NVD - Free Report) – Up 7%
Chip behemoth NVIDIA witnessed a volatile week, initially reaching all-time highs and then meeting with a reversal. The stock was down 2.5% last week. Profit booking probably weighed on this high-momentum and high-growth stock last week.