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| Funds Newsletter Your weekly update on the world of ETFs and Mutual Funds | ||||||||||||||||||||||||||||||||
| Why the Mag 7 Are Back in Favor with Investors After a tariff-driven shock in April, stocks rebounded last month as trade tensions appeared to ease. The S&P 500 gained 6.2% in May, marking its best performance for the month since 1990. Big Tech once again led the market, sending the Nasdaq surging 9.6%, its strongest monthly gain since November 2023. Information Technology and Communication Services were the best-performing sectors. Since the April 8 market bottom, Tesla shares have surged nearly 55%, while Nvidia has jumped 47%. Microsoft and Meta are each up about 30%, and the remaining three of the “Mag 7” have risen between 15% and 20%. Just yesterday, Nvidia surpassed Microsoft in market capitalization to reclaim the title of the world’s most valuable publicly traded company. Tech stocks, particularly the “Mag 7,” posted strong Q1 earnings, demonstrating that their core businesses remain robust and they are navigating current economic challenges successfully. According to Zacks Earnings Trends, Q1 earnings for the group are expected to rise 27.2% year over year on 12.2% higher revenues. The most anticipated event of May was Nvidia’s earnings report, closely watched by investors for insights into the state of the AI boom. The company exceeded expectations on both revenue and profit, reinforcing that enthusiasm for the AI trade remains strong despite ongoing restrictions on sales to China. Meanwhile, trade war concerns and a widening fiscal deficit have weighed on the U.S. dollar in recent weeks. A weaker dollar generally benefits large multinational companies, especially those with significant international revenues. That said, these firms may face renewed headwinds if trade tensions flare up again. Stretched valuations also remain a concern for some investors.
Good Investing,
Neena Mishra Director of ETF Research (see all the previous Zacks Fund Newsletter Editions) | ||||||||||||||||||||||||||||||||
| ETFs | ||||||||||||||||||||||||||||||||
| ETF Update Over the past few years, and again this year, investors who bought the dip have been rewarded. The key question now: can this trend continue? Find out here: 2025 a Strong Year for 'Buy the Dip' in ETFs: 5 Future Drivers Top ETF Commentaries 5 Sector ETFs That Beat the Market in May » Patience Pays Off: How to Play ETFs With Long-Term Goals » 6 Factors to Play Europe ETFs Now » Top Ranked ETFs on the Move
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| Mutual Funds | ||||||||||||||||||||||||||||||||
| Mutual Fund Spotlight Utilities could benefit amid rising uncertainties and surge in demand for power arising from AI applications. Here is what you need to know about top ranked funds: 3 Utility Mutual Funds to Buy During Market Uncertainty Top Mutual Fund Commentaries 3 Consumer Staples Funds You Can Bank on for the Months Ahead » 4 Invesco Mutual Funds to Buy Amid Market Uncertainty » 3 Lord Abbett Mutual Funds to Buy on Continued Market Volatility » Top Ranked Mutual Funds on the Move
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