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4 Best Inverse/Leveraged ETF Areas of Last Week

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Wall Street was mixed last week with the S&P 500 adding about 1%, the Dow Jones retreating 0.1% and the Nasdaq advancing more than 1.7%. Among the key developments, the Nasdaq and the S&P 500 hit a new all-time high on the artificial intelligence boom and the Fed rate cut bets.

Meanwhile, manufacturing data came in at weak but the trend showed signs of improvement. The ISM Manufacturing PMI in the United States dropped to 47.8 in February 2024 from 49.1 in the previous month, way below market expectations of 49.5 and marked the 16th successive period of declines in manufacturing activity. The data quelled previous hopes of fresh momentum in the sector.

Cleveland Fed president Loretta Mester said on Thursday that the latest reading on inflation (i.e., a month-over-month jump in the Fed’s preferred inflation gauge) doesn’t change her calculation for three rate cuts later in 2024. She is still predicting three cuts in 2024, an estimate she first made in December.

Bitcoin prices was on a tallying mode last week. Bitcoin jumped as much as 13% to $63,968 in the Feb 28 trading session — its first trip above $60,000 since November 2021. After that, the currency went on trending higher.  The rally has set Bitcoin up for its biggest monthly gain since December 2020 (read: Cryptocurrency ETF Tops in February: 5 Best Stocks).

On a separate context,Apple Inc. (AAPL) has decided to cancel its ambitious project to build an electric car, marking the end of a decade-long effort that aimed to revolutionize the automotive industry. The decision was disclosed internally on Feb 27, 2024, surprising the nearly 2,000 employees dedicated to the project, per Bloomberg (read: Apple Dumps EV for AI: Play AI ETFs).

Against this backdrop, below we highlight winning inverse/leveraged ETFs of last week

ETF Areas in Focus

GraniteShares 2x Long COIN Daily ETF (CONL - Free Report) ) – Up 49.6%

2x Bitcoin Strategy ETF (BITX - Free Report) ) – Up 45.5%

Bitcoin stood roughly 9% off its all-time high after a swift rally in the cryptocurrency. The world's largest cryptocurrency by market value traded near $63,000 on Mar 1, 2024. Bitcoin's intraday record on Mar 1 was $68,990.90, according to Dow Jones Market Data, as quoted on Wall Street Journal. The rallyhas been backed by the strong demand for speculation and trading activity. The bitcoin halving event scheduled in April 2024 also led to the rally.

Direxion Daily S&P Biotech Bull 3x Shares (LABU - Free Report) ) – Up 20.9%

Biotech stocks have staged a rebound lately and are being lifted by M&A activities. Novel drug launches, likely low rates and easy access to funds should buoy the zone in 2024.

MAX Auto Industry 3X Leveraged ETN (CARU - Free Report) ) – Up 20.8%

Activities have gained momentum in the global electric vehicle space. On Friday, Li Auto, a fast-growing startup rival to BYD and Tesla (TSLA - Free Report) in China, launched the Mega minivan, its first purely battery-electric vehicle. Li said it expects the Mega to drive a delivery rebound in March, as quoted on On Thursday, Tesla re-instated an insurance subsidy on its most popular EVs in China, as the price war has been heating up.

Direxion Daily Semiconductor Bull 3x Shares (SOXL - Free Report) ) – Up 20.3%

Nvidia Corp. (NVDA - Free Report) became the first semiconductor company to reach a $2 trillion valuation last week, marking an important milestone in its rise as the primary beneficiary of the surge in artificial intelligence-related stocks over the past year. The company now stood on $2.05 trillion on market cap. No wonder, such a condition would benefit semiconduction ETFs.

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