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Wall Street was mixed last week with the S&P 500, the Dow Jones and the Nasdaq losing 1.9%, adding 0.7% and retreating 3.7% last week. The small-cap index Russell 2000 advanced 1.7% last week as “Trump Trade” gained momentum.
The odds of former president Donald Trump winning the election in November have risen significantly following the assassination attempt on him. Investors now also anticipate the Federal Reserve to begin cutting interest rates in September due to the cooling in inflation as well as the labor market (read: Trump Trade Resurgence: ETF Areas Set to Gain or Lose).
Meanwhile, gold hit a record as markets are bracing for global interest rates to fall. The price of gold was buoyed by the potential for U.S. monetary policy easing, increased geopolitical tensions and purchases by central banks (read: Gold Hits Record High: 5 Reasons ETFs Could Rally Further).
Top-Performing ETFs
Against this backdrop, below we highlight a few winning ETF Areas of last week.
Bitcoin has gained momentum since the Trump trade began. The cryptocurrency is yet to touch the peak of its current appreciation cycle and is expected to top its all-time high this year, according to the CCData research report (read: Time to Buy the Dip in Bitcoin ETFs?).
iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX - Free Report) gained 4.3% on Jul 19 as volatility levels spiked in the market thanks to a sudden change in the market mood. “Trump Trade” started to take place in the market, resulting in market rotation. Tech stocks took a beating. So did the winning semiconductor stocks. All these factors resulted in gains in the leveraged volatility exchange-traded products.
The current sentiment at ether is bullish with a Fear-Greed Index of 52, indicating a neutral market stance, per coindcx.com. Looking ahead, Ethereum price is well-positioned for potential growth, particularly with the upcoming Pectra upgrade in Q1 of 2025, which looks to increase network efficiency and functionality.
Regional Banking
First Trust NASDAQ ABA Community Bank Index Fund (QABA - Free Report) – Up 8.4%
U.S. banks showed a strong comeback last week on bullish fundamentals in the space amid market rotation into undervalued segments. Chances of a Fed rate cut in September (due to cooling inflation) can steepen the yield curve and boost regional banking stocks. The robust second-quarter results of the banks also added to the strength.
As the “Trump Trade” took momentum last week, market rotation happened. As Trump favors low interest rates and the Fed is also likely to cut rates in the near term, rate-sensitive sectors like homebuilding surged.
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5 Top-Performing ETFs of Last Week
Wall Street was mixed last week with the S&P 500, the Dow Jones and the Nasdaq losing 1.9%, adding 0.7% and retreating 3.7% last week. The small-cap index Russell 2000 advanced 1.7% last week as “Trump Trade” gained momentum.
The odds of former president Donald Trump winning the election in November have risen significantly following the assassination attempt on him. Investors now also anticipate the Federal Reserve to begin cutting interest rates in September due to the cooling in inflation as well as the labor market (read: Trump Trade Resurgence: ETF Areas Set to Gain or Lose).
The latest quarterly results from America's major banks have come in at upbeat. Across the board, leading banks such as Goldman Sachs (GS - Free Report) , JPMorgan Chase (JPM - Free Report) and others reported robust increases in investment-banking revenues (read: What You Need to Know About Bank ETFs In Light of Q2 Earnings).
Meanwhile, gold hit a record as markets are bracing for global interest rates to fall. The price of gold was buoyed by the potential for U.S. monetary policy easing, increased geopolitical tensions and purchases by central banks (read: Gold Hits Record High: 5 Reasons ETFs Could Rally Further).
Top-Performing ETFs
Against this backdrop, below we highlight a few winning ETF Areas of last week.
Bitcoin
iShares Bitcoin Trust Registered (IBIT - Free Report) – Up 16.9%
Bitcoin has gained momentum since the Trump trade began. The cryptocurrency is yet to touch the peak of its current appreciation cycle and is expected to top its all-time high this year, according to the CCData research report (read: Time to Buy the Dip in Bitcoin ETFs?).
Volatility
ProShares VIX Short-Term Futures ETF (VIXY - Free Report) – Up 13.8%
iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX - Free Report) gained 4.3% on Jul 19 as volatility levels spiked in the market thanks to a sudden change in the market mood. “Trump Trade” started to take place in the market, resulting in market rotation. Tech stocks took a beating. So did the winning semiconductor stocks. All these factors resulted in gains in the leveraged volatility exchange-traded products.
Ether
ProShares Ether Strategy ETF (EETH - Free Report) – Up 13.2%
The current sentiment at ether is bullish with a Fear-Greed Index of 52, indicating a neutral market stance, per coindcx.com. Looking ahead, Ethereum price is well-positioned for potential growth, particularly with the upcoming Pectra upgrade in Q1 of 2025, which looks to increase network efficiency and functionality.
Regional Banking
First Trust NASDAQ ABA Community Bank Index Fund (QABA - Free Report) – Up 8.4%
U.S. banks showed a strong comeback last week on bullish fundamentals in the space amid market rotation into undervalued segments. Chances of a Fed rate cut in September (due to cooling inflation) can steepen the yield curve and boost regional banking stocks. The robust second-quarter results of the banks also added to the strength.
Homebuilding
iShares U.S. Home Construction ETF ITB – Up 5.3%
As the “Trump Trade” took momentum last week, market rotation happened. As Trump favors low interest rates and the Fed is also likely to cut rates in the near term, rate-sensitive sectors like homebuilding surged.