Wall Street was in a cheerful mood last week as the S&P 500, the Dow Jones and the Nasdaq added 7.3%, 6.9% and 9%, respectively. Stocks registered their
biggest weekly gains last week since April. The week saw the U.S. presidential election and the likelihood of a Biden presidency with a divided Congress. The Senate will likely be ruled by Republicans and the House by Democrats.
As a result, Wall Street booked remarkable gains a day after the election. The tech-centric Nasdaq gained 5.8%, outpacing the S&P (up 2.20% — its
best performance since June) and Dow's (up 1.3%) gains. Per a MarketWatch article, the S&P 500 and the Nasdaq recorded the best post-election day rally in history.
The absence of a “blue wave” and democratic control left market experts believing that “the Senate stays more balanced, and that balance keeps a gridlock —
which prevents big changes to health care and the tax code," said Darrell Cronk, president of Wells Fargo Investment Institute, as quoted on nbcnews.com.
The hope of the passage of a fiscal stimulus deal (may be small in size) was probably another reason for the rally. Meanwhile, the latest U.S. manufacturing and jobs data too came in decent. Growth investing is also likely to maintain its strength.
Against this backdrop, below we highlight a few ETFs that emerged toppers last week.
Last week, Mississippi voted to legalize medical cannabis, per the Associated Press,
as quoted on Businessinsider. Mississippi is one of the first conservative states to have okayed the medical use of cannabis. This along with Biden’s (who is in favor of legalizing cannabis) almost-victory boosted the space last week.
Arizona, New Jersey, South Dakota and Montana voters took steps to put an end to marijuana prohibition, which will facilitate its legal recreational use in their jurisdictions. Global X Cannabis ETF( POTX Quick Quote POTX - Free Report) and ETFMG Alternative Harvest ETF ( MJ Quick Quote MJ - Free Report) gained 34.4% and 27.4%, respectively, last week. Silver
Silver prices surged last week as risk-on trade sentiments returned on hopes of a divided congress. We may see some fiscal stimulus in the coming days, which will strengthen cyclical activities in the economy. Silver, which plays a role of an industrial metal too, is thus poised to gain from a pickup in industrial activities.
ETFMG Prime Junior Silver ETF ( SILJ Quick Quote SILJ - Free Report) added 16.6% last week. Poland
The Bank of England has announced
an uptick in its already mammoth bond-buying stimulus by 150 billion pounds ($195 billion) amid fresh coronavirus lockdowns and the looming risk of Brexit. Corporate earnings have been decent in Europe. These developments along with low yields in the United States that drove investors to high-yield emerging markets, pushed iShares MSCI Poland ETF ( EPOL Quick Quote EPOL - Free Report) higher. The fund that yields 4.18% annually, added 16.5% last week. Clean Energy
Biden sees America as becoming a 100%
clean energy economy by 2035 and having net zero emission by 2050. If this happens, the entire supply chain of the electric vehicle industry will be charged up.
Then again, alternative energy like solar has seen a great run even in the Trump administration, which supported fossil fuel. So, the latest political scenario should be great for
Invesco WilderHill Clean Energy ETF ( PBW Quick Quote PBW - Free Report) , which advanced 15.6% last week (read: Biden Or Trump: Clean Energy ETFs To Soar Ahead). Brazil
Latin American stocks
had the best week in five months. It gained from an upbeat mood in emerging markets as the dollar is expected to remain calm on massive monetary policy easing. A lower and longer-than-expected level of subdued U.S. interest rates made Brazil stocks a winner as investors sought high-yield options. VanEck Vectors Brazil Small-Cap ETF ( BRF Quick Quote BRF - Free Report) , which yields 3.94% annually, gained 15.5% last week. Want key ETF info delivered straight to your inbox?
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