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Wall Street was downbeat last week. Each of the key equity gadgets — the S&P 500 (down 2.9%), the Dow Jones (down 2.9%), the Nasdaq Composite (down 2.7%) and the Russell 2000 (down 0.9%) — lost last week. Rising rate worries and recessionary fears were the key concerns.
There were market declines led by Apple (AAPL) after it dropped plans to boost production of its new iPhones. Bloomberg reported Apple had told suppliers to cut efforts to increase assembly of its iPhone 14 product family by as many as 6 million units in the second half of this year, as quoted on Financial Express.
A crash in Apple had a spillover effect on big tech companies. Meta Platforms slumped after Chief Executive Officer Mark Zuckerberg outlined plans to reduce headcount for the first time ever. Meta’s slowing user growth has been a drag on the company this year. Amazon.com Inc., Alphabet Inc. and Microsoft Corp. – all dropped last week.
The S&P 500 has fallen to a fresh 2022 low. As for as the U.S. treasury yields are concerned, benchmark treasury yield started the week at 3.88%, hit a high of 3.97% and ended the week at 3.83%. Against this backdrop, below we highlight a few inverse/leveraged ETF areas that have gained at least 10%.
ETFs in Focus
Axs 2X Nke Bear Daily ETF – Up 29.3%
Nike shares fell last week as overstocked inventory hurt its earnings. The company said inventory on its balance sheet was up 44% to $9.7 billion, driven by continued supply chain issues. Shares fell more than 12% on Friday. As delivery times and consumer demand increased this year, retailers ordered inventory earlier than usual to avoid supply-chain related delays. But quick improvement in in-transit shipping time resulted in growing inventories, per CNBC. No wonder, inverse/leveraged Nike ETF gained massively.
Gold and silver mining stocks probably have gained from a declining greenback. Invesco DB US Dollar Index Bullish Fund (UUP) lost about 1.6% last week. This has probably helped gold prices last week. Since mining stocks often act as leveraged play of the underlying metal, leveraged gold and silver miners gained last week. Etfmg Prime Junior Silver Miners 2X ETF too added 18.3% last week.
As Apple-led selloff weighed on the broader technology space last week, inverse/leveraged technology ETF gained. The Direxion Daily Technology Bear 3X Shares seeks daily investment results, before fees and expenses, of 300% of the inverse (or opposite) of the price performance Standard & Poors Technology Select Sector Index.
Microsectors U.S. Big Oil Index 3X ETN (NRGU - Free Report) – Up 11.9%
Oil prices logged weekly gain though it lost heavily on Friday. United States Oil Fund, LP (USO) added 3.3% last week. There is a chance of OPEC+ output cut when it will meet on Oct 5, per Reuters.
As the broader market declined last week, volatility flared up. The weak trend is likely to continue given rising rates and recession fears. Understandably, this double-leveraged volatility ETF gained last week. The underlying S&P 500 VIX Short-Term Futures Index Total Return offers exposure to a daily rolling long position in the first and second month VIX futures contracts and reflects views of the future direction of the VIX index at the time of expiration of the VIX futures contracts comprising the Index.
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Best Inverse/Leveraged ETFs of Last Week
Wall Street was downbeat last week. Each of the key equity gadgets — the S&P 500 (down 2.9%), the Dow Jones (down 2.9%), the Nasdaq Composite (down 2.7%) and the Russell 2000 (down 0.9%) — lost last week. Rising rate worries and recessionary fears were the key concerns.
There were market declines led by Apple (AAPL) after it dropped plans to boost production of its new iPhones. Bloomberg reported Apple had told suppliers to cut efforts to increase assembly of its iPhone 14 product family by as many as 6 million units in the second half of this year, as quoted on Financial Express.
A crash in Apple had a spillover effect on big tech companies. Meta Platforms slumped after Chief Executive Officer Mark Zuckerberg outlined plans to reduce headcount for the first time ever. Meta’s slowing user growth has been a drag on the company this year. Amazon.com Inc., Alphabet Inc. and Microsoft Corp. – all dropped last week.
The S&P 500 has fallen to a fresh 2022 low. As for as the U.S. treasury yields are concerned, benchmark treasury yield started the week at 3.88%, hit a high of 3.97% and ended the week at 3.83%. Against this backdrop, below we highlight a few inverse/leveraged ETF areas that have gained at least 10%.
ETFs in Focus
Axs 2X Nke Bear Daily ETF – Up 29.3%
Nike shares fell last week as overstocked inventory hurt its earnings. The company said inventory on its balance sheet was up 44% to $9.7 billion, driven by continued supply chain issues. Shares fell more than 12% on Friday. As delivery times and consumer demand increased this year, retailers ordered inventory earlier than usual to avoid supply-chain related delays. But quick improvement in in-transit shipping time resulted in growing inventories, per CNBC. No wonder, inverse/leveraged Nike ETF gained massively.
Microsectors Gold Miners 3X ETN (GDXU - Free Report) – Up 23.5%
Gold and silver mining stocks probably have gained from a declining greenback. Invesco DB US Dollar Index Bullish Fund (UUP) lost about 1.6% last week. This has probably helped gold prices last week. Since mining stocks often act as leveraged play of the underlying metal, leveraged gold and silver miners gained last week. Etfmg Prime Junior Silver Miners 2X ETF too added 18.3% last week.
Technology Bear 3X Direxion (TECS - Free Report) – Up 12.7%
As Apple-led selloff weighed on the broader technology space last week, inverse/leveraged technology ETF gained. The Direxion Daily Technology Bear 3X Shares seeks daily investment results, before fees and expenses, of 300% of the inverse (or opposite) of the price performance Standard & Poors Technology Select Sector Index.
Microsectors U.S. Big Oil Index 3X ETN (NRGU - Free Report) – Up 11.9%
Oil prices logged weekly gain though it lost heavily on Friday. United States Oil Fund, LP (USO) added 3.3% last week. There is a chance of OPEC+ output cut when it will meet on Oct 5, per Reuters.
2x Long VIX Futures ETF (UVIX - Free Report) – Up 11.6%
As the broader market declined last week, volatility flared up. The weak trend is likely to continue given rising rates and recession fears. Understandably, this double-leveraged volatility ETF gained last week. The underlying S&P 500 VIX Short-Term Futures Index Total Return offers exposure to a daily rolling long position in the first and second month VIX futures contracts and reflects views of the future direction of the VIX index at the time of expiration of the VIX futures contracts comprising the Index.