We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Wall Street delivered an upbeat performance last week due to dovish Fed cues. The S&P 500 added 2.3%, the Dow Jones advanced 2% and the Nasdaq rose about 2.9%. There was growing optimism that the Federal Reserve will soon start cutting rates as the U.S. central bank sticked to its previous projections of three rate cuts despite recently-released hot inflation data.
Inside Fed Meeting
On Wednesday, the Fed left its benchmark federal funds rate unchanged and projected three rate cuts this year. During the news conference, Chair Powell acknowledged that inflation had been more persistent than expected over the past two months but expressed hope that inflation was on a sustainable path back to 2%.
The central bank expects solid economic growth and the unemployment rate to remain at a low level. Powell noted that a strong job market wouldn’t deter the central bank from reducing rates. Stocks soared after the press conference.
Broadening of Wall Street Rally
While technology stocks – being high-growth in nature – continue to perform well, the rally has broadened, with a clear resurgence in mid- and small-cap stocks recently. The financials, industrials and energy sectors are also outperforming the S&P 500’s 9.7% year-to-date gain.
The Magnificent Seven - Apple, Nvidia, Alphabet, Tesla, Microsoft, Meta Platforms and Amazon.com - have been responsible for 40% of the S&P 500’s gain as of Thursday, according to S&P Dow Jones Indices. That compares with a share of over 60% last year, per a Reuters article.
BoJ Ends Negative Rate Era
BoJ (Bank of Japan) hiked its short-term interest rates to around 0% to 0.1% from -0.1%, according to its statement at the end of its two-day March policy meeting. It marked the first rate-hike in 17 years, putting an end to the world’s only negative rates regime on signs of robust wage gains this year. Japan’s negative rates regime had been in place since 2016 (read: BoJ Ends Negative Rate Era: ETFs to Win).
Nvidia’s GPU Technology Conference
Another highly anticipated event of the week was Nvidia’s GPU Technology Conference (GTC). CEO Jensen Huang unveiled the latest cutting-edge chips during the event, which was held in person for the first time since 2019.
Woes in Apple
Apple shares fell 2% last week as the Justice Department filed an antitrust lawsuit alleging the iPhone giant used its power over app distribution to block innovations, resulting in higher prices for consumers.
Earlier this week, Google shares surged on reports that the company was in talks with Apple to bring its Generative AI engine, Gemini, to iPhones. Apple was also reportedly in negotiations with ChatGPT parent OpenAI. Alphabet shares gained 1.4% last week.
Investors have expressed concerns that Apple has fallen behind in the AI race. CEO Tim Cook announced that the iPhone maker would introduce new generative AI capabilities later this year.
Is Bitcoin Mania Losing Steam?
While the newly launched Bitcoin ETFs have continued to attract billions in inflows, Grayscale's GBTC has recorded outflows of more than $12 billion since it was converted into an ETF, mainly due to its high fees. Grayscale is now planning a "mini-me" version of GBTC, which will come with a lower expense ratio.
Meanwhile, bitcoin has logged a meaningful pullback last week, falling more than 10% from its all-time high, as interest in fledgling spot Bitcoin exchange-traded funds (ETFs) moderates. JPMorgan Chase and Co. strategists caution that the retreat may not be over yet, per Bloomberg (read: Is Bitcoin Euphoria Waning? ETFs to Gain).
Winning ETF Areas
Against this backdrop, below we highlight a few winning ETF areas of last week.
Marijuana
Amplify Alternative Harvest ETF (MJ) – Up 18.8%
Amplify Seymour Cannabis ETF (CNBS) – Up 12.5%
In a White House meeting, Vice President Kamala Harris last week urged the DEA to expedite the rescheduling of marijuana, criticizing its current Schedule 1 classification as "absurd" and "patently unfair." She put stress on the need for swift action and highlighted ongoing efforts toward rescheduling (read: Is Rescheduling a Certainty for Cannabis? ETFs That Surge).
Inverse Bitcoin
ProShares Short Bitcoin Strategy ETF (BITI - Free Report) – Up 8.4%
The group of 10 spot Bitcoin ETFs recorded the largest three-day outflow last week since their introduction on Jan 11. JPMorgan strategists, led by Nikolaos Panigirtzoglou, reiterate their view that Bitcoin still appears overbought. As the highly-anticipated halving event approaches in April, which will reduce the supply of newly minted Bitcoin from miners, profit-taking is expected to continue.
The Argentina’s stock market euphoria was caused by twin surpluses (trade and financial) for the second successive month in February. That is, the national public sector logged primary and financial fiscal surpluses, while the trade balance also showed a positive outcome. This along with the Fed’s dovish cues boosted Argentina’s stocks.
Uranium mining companies’ prices went up last week. The underlying Nasdaq Sprott Junior Uranium Miners Index track the performance of companies that derive at least 50% of their revenue and assets from mining, exploration, development, and production of uranium; earning uranium royalties; and supplying uranium.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Best ETF Areas of Last Week
Wall Street delivered an upbeat performance last week due to dovish Fed cues. The S&P 500 added 2.3%, the Dow Jones advanced 2% and the Nasdaq rose about 2.9%. There was growing optimism that the Federal Reserve will soon start cutting rates as the U.S. central bank sticked to its previous projections of three rate cuts despite recently-released hot inflation data.
Inside Fed Meeting
On Wednesday, the Fed left its benchmark federal funds rate unchanged and projected three rate cuts this year. During the news conference, Chair Powell acknowledged that inflation had been more persistent than expected over the past two months but expressed hope that inflation was on a sustainable path back to 2%.
The central bank expects solid economic growth and the unemployment rate to remain at a low level. Powell noted that a strong job market wouldn’t deter the central bank from reducing rates. Stocks soared after the press conference.
Broadening of Wall Street Rally
While technology stocks – being high-growth in nature – continue to perform well, the rally has broadened, with a clear resurgence in mid- and small-cap stocks recently. The financials, industrials and energy sectors are also outperforming the S&P 500’s 9.7% year-to-date gain.
The Magnificent Seven - Apple, Nvidia, Alphabet, Tesla, Microsoft, Meta Platforms and Amazon.com - have been responsible for 40% of the S&P 500’s gain as of Thursday, according to S&P Dow Jones Indices. That compares with a share of over 60% last year, per a Reuters article.
BoJ Ends Negative Rate Era
BoJ (Bank of Japan) hiked its short-term interest rates to around 0% to 0.1% from -0.1%, according to its statement at the end of its two-day March policy meeting. It marked the first rate-hike in 17 years, putting an end to the world’s only negative rates regime on signs of robust wage gains this year. Japan’s negative rates regime had been in place since 2016 (read: BoJ Ends Negative Rate Era: ETFs to Win).
Nvidia’s GPU Technology Conference
Another highly anticipated event of the week was Nvidia’s GPU Technology Conference (GTC). CEO Jensen Huang unveiled the latest cutting-edge chips during the event, which was held in person for the first time since 2019.
Woes in Apple
Apple shares fell 2% last week as the Justice Department filed an antitrust lawsuit alleging the iPhone giant used its power over app distribution to block innovations, resulting in higher prices for consumers.
Earlier this week, Google shares surged on reports that the company was in talks with Apple to bring its Generative AI engine, Gemini, to iPhones. Apple was also reportedly in negotiations with ChatGPT parent OpenAI. Alphabet shares gained 1.4% last week.
Investors have expressed concerns that Apple has fallen behind in the AI race. CEO Tim Cook announced that the iPhone maker would introduce new generative AI capabilities later this year.
Is Bitcoin Mania Losing Steam?
While the newly launched Bitcoin ETFs have continued to attract billions in inflows, Grayscale's GBTC has recorded outflows of more than $12 billion since it was converted into an ETF, mainly due to its high fees. Grayscale is now planning a "mini-me" version of GBTC, which will come with a lower expense ratio.
Meanwhile, bitcoin has logged a meaningful pullback last week, falling more than 10% from its all-time high, as interest in fledgling spot Bitcoin exchange-traded funds (ETFs) moderates. JPMorgan Chase and Co. strategists caution that the retreat may not be over yet, per Bloomberg (read: Is Bitcoin Euphoria Waning? ETFs to Gain).
Winning ETF Areas
Against this backdrop, below we highlight a few winning ETF areas of last week.
Marijuana
Amplify Alternative Harvest ETF (MJ) – Up 18.8%
Amplify Seymour Cannabis ETF (CNBS) – Up 12.5%
In a White House meeting, Vice President Kamala Harris last week urged the DEA to expedite the rescheduling of marijuana, criticizing its current Schedule 1 classification as "absurd" and "patently unfair." She put stress on the need for swift action and highlighted ongoing efforts toward rescheduling (read: Is Rescheduling a Certainty for Cannabis? ETFs That Surge).
Inverse Bitcoin
ProShares Short Bitcoin Strategy ETF (BITI - Free Report) – Up 8.4%
The group of 10 spot Bitcoin ETFs recorded the largest three-day outflow last week since their introduction on Jan 11. JPMorgan strategists, led by Nikolaos Panigirtzoglou, reiterate their view that Bitcoin still appears overbought. As the highly-anticipated halving event approaches in April, which will reduce the supply of newly minted Bitcoin from miners, profit-taking is expected to continue.
Argentina
Global X MSCI Argentina ETF (ARGT - Free Report) – Up 7.0%
The Argentina’s stock market euphoria was caused by twin surpluses (trade and financial) for the second successive month in February. That is, the national public sector logged primary and financial fiscal surpluses, while the trade balance also showed a positive outcome. This along with the Fed’s dovish cues boosted Argentina’s stocks.
Uranium Miners
Sprott Junior Uranium Miners ETF (URNJ - Free Report) – Up 5.7%
Uranium mining companies’ prices went up last week. The underlying Nasdaq Sprott Junior Uranium Miners Index track the performance of companies that derive at least 50% of their revenue and assets from mining, exploration, development, and production of uranium; earning uranium royalties; and supplying uranium.