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The S&P 500 hit a new high for the year last week after the November jobs report and University of Michigan consumer survey data indicated a resilient economy and cooling inflation, triggering bets on a so-called soft-landing scenario.
Last week, the S&P 500 added 0.2%, the Nasdaq gained 0.7%, the Dow Jones nudged up 0.01% and the Russell 2000 jumped 0.98%. With this, the S&P 500 marked the six-week winning streak.
Inside the Data Points
The latest consumer sentiment survey from the University of Michigan indicated that consumers expect inflation to sit at 3.1% in a year, a decrease from last month's expectation of 4.5%. December's reading marked the lowest since March 2021 and is slightly above the 2.3% to 3.0% range seen in the two years before the pandemic.
Expectations for long-run inflation slumped to 2.8%, down from November's 3.2%, which was the highest reading since 2011. The overall consumer sentiment index jumped 13% in December after four straight months of decline. Consumer sentiment remained at 69.4, above November's reading of 59.8 and the highest reading since August.
The November U.S. jobs report showed continued resilience in the labor market. U.S. nonfarm payrolls grew by 199,000 last month, the Labor Department said on Friday. That was more than 190,000 jobs anticipated by economists surveyed by Dow Jones, and better than the October gain of 150,000, per CNBC.
The unemployment rate in the United States declined to 3.7% in November 2023 from 3.9% in the previous month, marking the lowest level since July and firmly under market expectations that it would remain unchanged at 3.9%.
Among other developments of last week, the oil price slump hogged investors’ attention. United States Oil ETF (USO - Free Report) declined 3.1% last week. Oil prices are on their longest weekly losing streak since 2018, driven by concerns about a global glut and skepticism over the OPEC+’s effectiveness in implementing deeper supply cuts (read: Inverse Energy ETFs Rise Amid Steep Decline in Oil).
Inside Winning Inverse/Leveraged ETFs of Last Week
Against this backdrop, below we highlight a few winning ETFs of last week.
Bitcoin prices have been on a tear lately, with a 20% one-month jump. Last week, too, this cryptocurrency gained 5.2%. Meanwhile, Ethereum prices gained about 7% last week. As a result, companies that mine cryptocurrencies gained last week. Risk-on trade sentiments amid talks of potential dovishness of the Fed boosted these companies and the related funds.
The cannabis industry experienced significant growth and a rally in cannabis stocks in late 2023. This growth was driven by increasing legalization and public acceptance, marking a shift from a temporary surge to a stable, long-term market segment. Medical marijuana is also gaining traction. New Jersey lowered the cost to register for medical marijuana as interest declined. As rates fell somewhat, chances of a rebound in small-cap stocks gained, too.
An improving economy, rebounding consumer confidence, increased holiday travels among consumers and merger activities in the airlines sector probably have boosted the fund (read: 5 ETF Areas At One-Month High to Start December).
Biotech
ALPS Medical Breakthroughs ETF (SBIO - Free Report) – Up 5.7%
Small-and-mid sized biotech stocks surged lately amid a rebound in small-cap stocks. As chances of easing in rate hikes rose, biotech stocks gained on hopes of easier fund arrangements.
Meme Stocks
Roundhill MEME ETF – Up 5.4%
The underlying Solactive Roundhill Meme Stock Index consists of 25 equal-weighted U.S.-listed equity securities that exhibit a combination of elevated social media activity and high short interest. Cheaper valuation and the return of risk-on-trade sentiments favored shares of the struggling companies that commonly emerge as meme stocks.
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Best-Performing ETFs of Last Week
The S&P 500 hit a new high for the year last week after the November jobs report and University of Michigan consumer survey data indicated a resilient economy and cooling inflation, triggering bets on a so-called soft-landing scenario.
Last week, the S&P 500 added 0.2%, the Nasdaq gained 0.7%, the Dow Jones nudged up 0.01% and the Russell 2000 jumped 0.98%. With this, the S&P 500 marked the six-week winning streak.
Inside the Data Points
The latest consumer sentiment survey from the University of Michigan indicated that consumers expect inflation to sit at 3.1% in a year, a decrease from last month's expectation of 4.5%. December's reading marked the lowest since March 2021 and is slightly above the 2.3% to 3.0% range seen in the two years before the pandemic.
Expectations for long-run inflation slumped to 2.8%, down from November's 3.2%, which was the highest reading since 2011. The overall consumer sentiment index jumped 13% in December after four straight months of decline. Consumer sentiment remained at 69.4, above November's reading of 59.8 and the highest reading since August.
The November U.S. jobs report showed continued resilience in the labor market. U.S. nonfarm payrolls grew by 199,000 last month, the Labor Department said on Friday. That was more than 190,000 jobs anticipated by economists surveyed by Dow Jones, and better than the October gain of 150,000, per CNBC.
The unemployment rate in the United States declined to 3.7% in November 2023 from 3.9% in the previous month, marking the lowest level since July and firmly under market expectations that it would remain unchanged at 3.9%.
Among other developments of last week, the oil price slump hogged investors’ attention. United States Oil ETF (USO - Free Report) declined 3.1% last week. Oil prices are on their longest weekly losing streak since 2018, driven by concerns about a global glut and skepticism over the OPEC+’s effectiveness in implementing deeper supply cuts (read: Inverse Energy ETFs Rise Amid Steep Decline in Oil).
Inside Winning Inverse/Leveraged ETFs of Last Week
Against this backdrop, below we highlight a few winning ETFs of last week.
Cryptocurrency Miners
Global X Blockchain ETF (BKCH - Free Report) – Up 17.4%
Valkyrie Bitcoin Miners ETF (WGMI - Free Report) – Up 17.1%
Bitcoin prices have been on a tear lately, with a 20% one-month jump. Last week, too, this cryptocurrency gained 5.2%. Meanwhile, Ethereum prices gained about 7% last week. As a result, companies that mine cryptocurrencies gained last week. Risk-on trade sentiments amid talks of potential dovishness of the Fed boosted these companies and the related funds.
Cannabis
Roundhill Cannabis ETF (WEED - Free Report) – Up 9.4%
Subversive Cannabis ETF – Up 7.9%
The cannabis industry experienced significant growth and a rally in cannabis stocks in late 2023. This growth was driven by increasing legalization and public acceptance, marking a shift from a temporary surge to a stable, long-term market segment. Medical marijuana is also gaining traction. New Jersey lowered the cost to register for medical marijuana as interest declined. As rates fell somewhat, chances of a rebound in small-cap stocks gained, too.
Airlines
U.S. Global Jets ETF (JETS - Free Report) – Up 6.5%
An improving economy, rebounding consumer confidence, increased holiday travels among consumers and merger activities in the airlines sector probably have boosted the fund (read: 5 ETF Areas At One-Month High to Start December).
Biotech
ALPS Medical Breakthroughs ETF (SBIO - Free Report) – Up 5.7%
Virtus LifeSci Biotech Clinical Trials ETF (BBC - Free Report) – Up 5.2%
Small-and-mid sized biotech stocks surged lately amid a rebound in small-cap stocks. As chances of easing in rate hikes rose, biotech stocks gained on hopes of easier fund arrangements.
Meme Stocks
Roundhill MEME ETF – Up 5.4%
The underlying Solactive Roundhill Meme Stock Index consists of 25 equal-weighted U.S.-listed equity securities that exhibit a combination of elevated social media activity and high short interest. Cheaper valuation and the return of risk-on-trade sentiments favored shares of the struggling companies that commonly emerge as meme stocks.