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Wall Street was moderately upbeat last week and exhibited a decent Santa Clause rally. The S&P 500 inched up 0.3%, the Dow Jones added about 0.8% and the Nasdaq gained about 0.1%. Broad market sentiments have turned extremely bullish due to the Fed’s dovish tone.
In the latest meeting, Federal Reserve Chair Jerome Powell hinted at a major policy shift as inflation is easing and the economy is holding up better. The central bank kept interest rates steady for the third time and penciled in three rate cuts of 75 bps for 2024. Lower interest rates generally lead to reduced borrowing costs, which can stimulate economic growth.
Benchmark U.S. Treasury yields started the week at 3.90%, hit a low of 3.79% and closed the week at 3.88%. Such a drop in yields boosted equities. Against this backdrop, below we highlight a few top-performing inverse/leveraged ETFs of last week.
The argument in favor of investing in cannabis companies has never been stronger. Across the United States, marijuana dispensaries are appearing rapidly, and the upcoming 2024 presidential election is providing motivation for drug policy reform. Hopes for Fed rate cuts in 2024 has also been acting as another tailwind.
Direxion Daily FTSE China Bull 3X Shares (YINN - Free Report) ) – Up 12.2%
China’s stocks gained last week as the country’s tech companies continued their rise. Chinese consumer electronics company Xiaomi unveiled plans to enter China’s electric-vehicle market last week. Notably, the Chinese economy expanded by 4.9% year over year in Q3 of 2023, beating market forecasts of 4.4% and strengthening hopes that it will meet the official annual target of around 5% this year. Moreover, Chinese stocks are cheaper.
Direxion MSCI Daily South Korea Bull 3X Shares (KORU - Free Report) ) – Up 6.7%
Despite being Asia's fourth-largest economy, South Korea's markets are often perceived as undervalued by analysts. South Korea’s economy expanded 0.6% sequentially in Q3 of 2023, the same pace as the prior quarter, a second reading showed, per tradingeconomics (read: Following Goldman Sachs? Bet on South Korea ETFs).
Emerging markets’ shares jumped last week on mainly on Fed rate cut hopes. There are a few factors that have acted as positives for the fund. These factors include undervaluation, falling inflation in emerging markets, higher growth estimates than the developed world, bets on falling U.S. rates and the likelihood of the lower U.S. dollar.
Gold bullion prices were down 0.2% last week. This has weighed on the gold mining stocks as mining stocks act as leveraged plays of the underlying metal.
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Best Inverse/Leveraged ETFs of Last Week
Wall Street was moderately upbeat last week and exhibited a decent Santa Clause rally. The S&P 500 inched up 0.3%, the Dow Jones added about 0.8% and the Nasdaq gained about 0.1%. Broad market sentiments have turned extremely bullish due to the Fed’s dovish tone.
In the latest meeting, Federal Reserve Chair Jerome Powell hinted at a major policy shift as inflation is easing and the economy is holding up better. The central bank kept interest rates steady for the third time and penciled in three rate cuts of 75 bps for 2024. Lower interest rates generally lead to reduced borrowing costs, which can stimulate economic growth.
Benchmark U.S. Treasury yields started the week at 3.90%, hit a low of 3.79% and closed the week at 3.88%. Such a drop in yields boosted equities. Against this backdrop, below we highlight a few top-performing inverse/leveraged ETFs of last week.
ETFs in Focus
AdvisorShares MSOS 2x Daily ETF (MSOX - Free Report) ) – Up 12.8%
The argument in favor of investing in cannabis companies has never been stronger. Across the United States, marijuana dispensaries are appearing rapidly, and the upcoming 2024 presidential election is providing motivation for drug policy reform. Hopes for Fed rate cuts in 2024 has also been acting as another tailwind.
Direxion Daily FTSE China Bull 3X Shares (YINN - Free Report) ) – Up 12.2%
China’s stocks gained last week as the country’s tech companies continued their rise. Chinese consumer electronics company Xiaomi unveiled plans to enter China’s electric-vehicle market last week. Notably, the Chinese economy expanded by 4.9% year over year in Q3 of 2023, beating market forecasts of 4.4% and strengthening hopes that it will meet the official annual target of around 5% this year. Moreover, Chinese stocks are cheaper.
Direxion MSCI Daily South Korea Bull 3X Shares (KORU - Free Report) ) – Up 6.7%
Despite being Asia's fourth-largest economy, South Korea's markets are often perceived as undervalued by analysts. South Korea’s economy expanded 0.6% sequentially in Q3 of 2023, the same pace as the prior quarter, a second reading showed, per tradingeconomics (read: Following Goldman Sachs? Bet on South Korea ETFs).
Direxion Daily MSCI Emerging Markets Bull 3x Shares (EDC - Free Report) ) – Up 6.7%
Emerging markets’ shares jumped last week on mainly on Fed rate cut hopes. There are a few factors that have acted as positives for the fund. These factors include undervaluation, falling inflation in emerging markets, higher growth estimates than the developed world, bets on falling U.S. rates and the likelihood of the lower U.S. dollar.
MicroSectors Gold Miners -3X Inverse Leveraged ETNs (GDXD - Free Report) ) – Up 5.7%
Gold bullion prices were down 0.2% last week. This has weighed on the gold mining stocks as mining stocks act as leveraged plays of the underlying metal.