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Best Leveraged ETFs of Last Week

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Wall Street was upbeat last week. The S&P 500 index is up 5.9%, the Dow Jones has gained 4.2%, the Nasdaq has advanced 8.1% and the Russell 2000 has gained 4.6% past week. The S&P 500 logged best week since June, per CNBC.

The rally was mainly instigated by the lower-than-expected inflation data for the month of October. The annual inflation rate in the United States decelerated for fourth month to 7.7% in October, the lowest since January, and below forecasts of 8%. It compares with 8.2% in September. Compared to the previous month, the CPI rose 0.4%, below expectations of 0.6% (read: 4 Sector ETFs to Win from October Inflation Data).

Global stock markets increased on Nov 10, 2022 after the latest U.S. CPI inflation eased more than that had been expected, triggering hopes that the Federal Reserve might pare down plans for more interest rate hikes.

Traders expect the Fed to raise its benchmark lending rate in December but by a smaller margin of half a percentage point. If the pace of Fed rate hike slows, growth stocks should prosper. Tech stocks and related crypto stocks recoiled. The tech sector in the S&P 500 surged 10% through Friday, its best marking its weekly performance since April 2020.

Apple Inc. (AAPL) climbed 8.9% in Thursday's trading session to record its best single-day performance in more than two years amid a strong broad-market rally. This represents Apple's largest gain since Jul 31, 2020, according to Dow Jones Market Data (read: Apple Gains Record $191 Market-Cap Value: ETFs Surge).

Moreover, President Biden celebrated Democrats' win in the Senate in the midterm election in 2022, telling reporters in remarks that the party is now focusing on the upcoming Georgia runoff election. Against this backdrop, below we highlight below we highlight a few inverse/leveraged ETFs of last week.

ETFs in Focus

Semiconductor Bull 3X Direxion (SOXL) – Up 47.1% Past Week

Chips are used in everything from smartphones to cars and to all areas of computing, from PCs to massive data centers used for the cloud. It is the backbone of the chip industry. As inflation cooled, markets jumped led by tech stocks.

South Korea Bull 3X Direxion (KORU - Free Report) – Up 40.4% Past Week

As U.S. markets soared, South Korean stocks too jumped. The South Korea stock market has advanced in back-to-back trading recently. The global forecast for the Asian markets is upbeat due to retreating treasury levels and an improved outlook for interest rates, per RTT news.  

Microsectors Gold Miners 3X ETN (GDXU - Free Report) – Up 40.3% Past Week

The U.S. benchmark treasury yield started the week at 4.17%, hit a high of 4.22% and ended the week at 3.82%. As U.S. treasury yields dropped last week, the greenback has lost 3.4%. As the greenback fell, gold prices gained. Since mining stocks act as a leverage of underlying metal, gold mining ETF surged last week.

Dow Jones Internet Bull 3X Direxion (WEBL - Free Report) – Up 38.8% Past Week

As tech stocks were hit hard amid an inflationary environment, a slip in inflation and the associated decline in boosted tech and internet stocks.

Homebuilders & Suppliers Bull 3X Direxion (NAIL - Free Report) – Up 36.8% Past Week

As rates dived last week, chances of home sales increased and homebuilding stocks and ETFs gained.

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