We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Stocks surged higher on Thursday, with the Nasdaq Composite rising more than 2.3%, the S&P 500 gaining more than 1.6%, and the Dow Jones Industrial Average increasing about 1.4%, or roughly 550 points.
Following a tough start to August, stocks have rebounded. The Consumer Price Index (CPI) showed its lowest year-over-year increase since early 2021, allowing the S&P 500 and Nasdaq to recover losses from earlier in the month.
Retail giant Walmart (WMT - Free Report) was a major focus, with its stock jumping more than 6% on Thursday following a largely positive earnings report. Walmart topped both earnings and revenue expectations and raised its full-year outlook.
Retail Sales and Jobless Claims Data
Retail sales data for July showed a surprising 1% increase, significantly surpassing Wall Street's forecast of a 0.4% rise, hinting at strong consumer resilience. Additionally, weekly jobless claims dropped to 227,000, below expectations and contributing to the market’s gains.
Tech Stocks Turn Around
Tech stocks – once the blue-eyed boys of Wall Street – recently suffered due to doubts over the faster success of AI Investments. But that beaten-down space has also turned around. The cues of Fed rate cuts as early as in September probably have helped this space rebound. The AI behemoth NVIDIA Corporation (NVDA - Free Report) has gained 4.1% on Thursday. The Technology Select Sector SPDR Fund (XLK - Free Report) has advanced 2.9%.
Momentum ETFs to Gain
As such, most of the related exchange-traded funds (ETFs) will likely see a nice boost. Notably, high-beta and high-momentum products are expected to outperform in the near term and are intriguing choices for a short spell. High-beta ETFs experience larger gains than the broader market counterparts in a bullish market, while momentum investing looks to capture profits from buying hot stocks.
These include Invesco S&P 500 High Beta ETF (SPHB - Free Report) , iShares MSCI USA Momentum Factor ETF (MTUM - Free Report) , Invesco Dorsey Wright Momentum ETF (PDP - Free Report) , Invesco S&P MidCap Momentum ETF (XMMO - Free Report) and Invesco S&P SmallCap Value with Momentum ETF (XSVM - Free Report) .
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Momentum ETFs to Play as Wall Street Rallies?
Stocks surged higher on Thursday, with the Nasdaq Composite rising more than 2.3%, the S&P 500 gaining more than 1.6%, and the Dow Jones Industrial Average increasing about 1.4%, or roughly 550 points.
Following a tough start to August, stocks have rebounded. The Consumer Price Index (CPI) showed its lowest year-over-year increase since early 2021, allowing the S&P 500 and Nasdaq to recover losses from earlier in the month.
Retail giant Walmart (WMT - Free Report) was a major focus, with its stock jumping more than 6% on Thursday following a largely positive earnings report. Walmart topped both earnings and revenue expectations and raised its full-year outlook.
Retail Sales and Jobless Claims Data
Retail sales data for July showed a surprising 1% increase, significantly surpassing Wall Street's forecast of a 0.4% rise, hinting at strong consumer resilience. Additionally, weekly jobless claims dropped to 227,000, below expectations and contributing to the market’s gains.
Tech Stocks Turn Around
Tech stocks – once the blue-eyed boys of Wall Street – recently suffered due to doubts over the faster success of AI Investments. But that beaten-down space has also turned around. The cues of Fed rate cuts as early as in September probably have helped this space rebound. The AI behemoth NVIDIA Corporation (NVDA - Free Report) has gained 4.1% on Thursday. The Technology Select Sector SPDR Fund (XLK - Free Report) has advanced 2.9%.
Momentum ETFs to Gain
As such, most of the related exchange-traded funds (ETFs) will likely see a nice boost. Notably, high-beta and high-momentum products are expected to outperform in the near term and are intriguing choices for a short spell. High-beta ETFs experience larger gains than the broader market counterparts in a bullish market, while momentum investing looks to capture profits from buying hot stocks.
These include Invesco S&P 500 High Beta ETF (SPHB - Free Report) , iShares MSCI USA Momentum Factor ETF (MTUM - Free Report) , Invesco Dorsey Wright Momentum ETF (PDP - Free Report) , Invesco S&P MidCap Momentum ETF (XMMO - Free Report) and Invesco S&P SmallCap Value with Momentum ETF (XSVM - Free Report) .