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Wall Street offered a mixed performance last week, with the S&P 500 losing 0.8%. The Dow Jones Industrial Average has gained 0.8%. The Nasdaq was off 2.1% last week. The Russell 2000 has advanced 3.5% last week. The tech slump weighed on the Nasdaq and the S&P 500.
Wall Street’s tech crash last week was mainly driven by Alphabet Inc.'s (GOOGL - Free Report) earnings report, which highlighted increased capital expenses. Tesla Inc.’s (TSLA - Free Report) stock also suffered following its earnings results due to a lack of details from CEO Elon Musk on the company's self-driving vehicle efforts.
Many feared that the huge AI investments made by big tech companies would pay off later than expected. The scale of profitability of those investments is also unknown now, while the high valuation of AI stocks became a concern for many investors (read: Time for Covered Call ETFs?).
Inside Q2 U.S. GDP Data
Another key event last week was the release of the Q2 GDP growth data for the U.S. economy, which expanded at a faster-than-expected pace in the second quarter of 2024. The advance estimate of second-quarter U.S. GDP revealed that the economy grew at an annualized pace of 2.8% in Q2, well above the 2% growth expected by economists surveyed by Bloomberg, as quoted on Yahoo Finance. The reading came in higher than the first-quarter GDP, which was revised down to 1.4% (read: Small-Cap ETFs to Rally on Upbeat U.S. Q2 GDP Growth Data?).
Ether ETFs Receive Final Approval From SEC
ETFs holding ether (ETH) officially started to trade in the United States on Jul 23, 2024, following the final approval from regulators on Jul 22, 2024. This put the world’s second-largest cryptocurrency in an investment vehicle favored by many professional investors and advisors.
The Securities and Exchange Commission (SEC) has approved BlackRock (BLK - Free Report) , Fidelity, Franklin Templeton, Grayscale and 21 Shares, as announced by the companies (read: Ether ETFs Receive Final Approval From SEC).
Biden’s Exit From Presidential Race
President Joe Biden ended his presidential campaign on Jul 21, 2024. His departure was probably prompted by concerns from party officials about his ability to serve a second term at the age of 81. However, he plans to complete the remaining three months of his term.
Biden also announced his endorsement of Vice President Kamala Harris as the Democratic nominee for president. However, it doesn’t ensure that she will automatically get the nomination (read: AI Stocks & ETFs to Rally on Likely Harris Trade?)
ETFs in Focus
Against this backdrop, below we highlight a few winning ETFs of last week.
Biotech stocks have likely surged due to the anticipated Fed rate cuts and the prospects of lower interest rates ahead. Plus, the space has been thriving with innovations and FDA approvals. The top holding of the fund — Geron (GERN) — won the FDA approval for its blood cancer drug.
YieldMax Short TSLA Option Income Strategy ETF (CRSH) – Up 8.9%
Tesla posted mixed second-quarter 2024 results, wherein earnings missed the Zacks Consensus Estimate but revenues beat the same. The stock suffered last week and boosted the option income strategy ETF based on Tesla.
In this strategy, instead of buying options (which gives the right to buy or sell an asset at a certain price), you sell options contracts. When you sell options, you receive a premium upfront from the buyer of the option. The income-oriented fund yields 11.44% annually.
ETRACS Whitney U.S. Critical Technologies ETN (WUCT) – Up 7.8%
The underlying Solactive Whitney U.S. Critical Technologies CNTR Index is market-capitalization weighted, subject to caps on individual companies and designed to track large and mid-cap companies in developed markets that are associated with critical technology sectors and that meet a minimum geopolitical risk-rating score.
The fund’s top holding that takes 10% of the fund — Twist Bioscience Corp (TWST - Free Report) — gained 6.2% last week. The second holding that takes about 7% of the fund — Crispr Therapeutics (CRSP - Free Report) — added about 5% last week. In short, the air is currently in favor of biotech investing.
The space economy is witnessing frequent groundbreaking advancements worldwide. Maintaining an impressive annual growth rate of 9% and outpacing global GDP expansion, the space economy is projected to surge to $1.8 trillion by 2035 from $630 billion in 2023, according to a McKinsey report (read: $1.8T Space Boom Expected by 2035: ETFs to Play).
First Trust NASDAQ ABA Community Bank Index Fund (QABA - Free Report) – Up 6.3%
As the Fed is likely to cut rates in September, the yield curve has steepened and benefitted bank stocks as these increase banks’ net interest rate margin. Plus, the space is undervalued at the current level.
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Best ETFs of Last Week
Wall Street offered a mixed performance last week, with the S&P 500 losing 0.8%. The Dow Jones Industrial Average has gained 0.8%. The Nasdaq was off 2.1% last week. The Russell 2000 has advanced 3.5% last week. The tech slump weighed on the Nasdaq and the S&P 500.
Wall Street’s tech crash last week was mainly driven by Alphabet Inc.'s (GOOGL - Free Report) earnings report, which highlighted increased capital expenses. Tesla Inc.’s (TSLA - Free Report) stock also suffered following its earnings results due to a lack of details from CEO Elon Musk on the company's self-driving vehicle efforts.
Many feared that the huge AI investments made by big tech companies would pay off later than expected. The scale of profitability of those investments is also unknown now, while the high valuation of AI stocks became a concern for many investors (read: Time for Covered Call ETFs?).
Inside Q2 U.S. GDP Data
Another key event last week was the release of the Q2 GDP growth data for the U.S. economy, which expanded at a faster-than-expected pace in the second quarter of 2024. The advance estimate of second-quarter U.S. GDP revealed that the economy grew at an annualized pace of 2.8% in Q2, well above the 2% growth expected by economists surveyed by Bloomberg, as quoted on Yahoo Finance. The reading came in higher than the first-quarter GDP, which was revised down to 1.4% (read: Small-Cap ETFs to Rally on Upbeat U.S. Q2 GDP Growth Data?).
Ether ETFs Receive Final Approval From SEC
ETFs holding ether (ETH) officially started to trade in the United States on Jul 23, 2024, following the final approval from regulators on Jul 22, 2024. This put the world’s second-largest cryptocurrency in an investment vehicle favored by many professional investors and advisors.
The Securities and Exchange Commission (SEC) has approved BlackRock (BLK - Free Report) , Fidelity, Franklin Templeton, Grayscale and 21 Shares, as announced by the companies (read: Ether ETFs Receive Final Approval From SEC).
Biden’s Exit From Presidential Race
President Joe Biden ended his presidential campaign on Jul 21, 2024. His departure was probably prompted by concerns from party officials about his ability to serve a second term at the age of 81. However, he plans to complete the remaining three months of his term.
Biden also announced his endorsement of Vice President Kamala Harris as the Democratic nominee for president. However, it doesn’t ensure that she will automatically get the nomination (read: AI Stocks & ETFs to Rally on Likely Harris Trade?)
ETFs in Focus
Against this backdrop, below we highlight a few winning ETFs of last week.
Range Cancer Therapeutics ETF (CNCR - Free Report) – Up 9%
Biotech stocks have likely surged due to the anticipated Fed rate cuts and the prospects of lower interest rates ahead. Plus, the space has been thriving with innovations and FDA approvals. The top holding of the fund — Geron (GERN) — won the FDA approval for its blood cancer drug.
YieldMax Short TSLA Option Income Strategy ETF (CRSH) – Up 8.9%
Tesla posted mixed second-quarter 2024 results, wherein earnings missed the Zacks Consensus Estimate but revenues beat the same. The stock suffered last week and boosted the option income strategy ETF based on Tesla.
In this strategy, instead of buying options (which gives the right to buy or sell an asset at a certain price), you sell options contracts. When you sell options, you receive a premium upfront from the buyer of the option. The income-oriented fund yields 11.44% annually.
ETRACS Whitney U.S. Critical Technologies ETN (WUCT) – Up 7.8%
The underlying Solactive Whitney U.S. Critical Technologies CNTR Index is market-capitalization weighted, subject to caps on individual companies and designed to track large and mid-cap companies in developed markets that are associated with critical technology sectors and that meet a minimum geopolitical risk-rating score.
ARK Genomic Revolution ETF (ARKG - Free Report) – Up 7.3%
The fund’s top holding that takes 10% of the fund — Twist Bioscience Corp (TWST - Free Report) — gained 6.2% last week. The second holding that takes about 7% of the fund — Crispr Therapeutics (CRSP - Free Report) — added about 5% last week. In short, the air is currently in favor of biotech investing.
Procure Space ETF (UFO - Free Report) – Up 7%
The space economy is witnessing frequent groundbreaking advancements worldwide. Maintaining an impressive annual growth rate of 9% and outpacing global GDP expansion, the space economy is projected to surge to $1.8 trillion by 2035 from $630 billion in 2023, according to a McKinsey report (read: $1.8T Space Boom Expected by 2035: ETFs to Play).
First Trust NASDAQ ABA Community Bank Index Fund (QABA - Free Report) – Up 6.3%
As the Fed is likely to cut rates in September, the yield curve has steepened and benefitted bank stocks as these increase banks’ net interest rate margin. Plus, the space is undervalued at the current level.