Wall Street welcomed the U.S. court ruling that blocks President Donald Trump from imposing sweeping tariffs on imports under an emergency powers law. The ruling has eased investor concerns over trade policy, spreading huge optimism in the global stock market. The enthusiasm was further bolstered by strong earnings from artificial intelligence powerhouse NVIDIA (NVDA Quick QuoteNVDA - Free Report) .

In such a scenario, high-beta and high-momentum products are expected to outperform and are intriguing choices for a short spell. These include Invesco S&P 500 High Beta ETF (SPHB Quick QuoteSPHB - Free Report) , iShares MSCI USA Momentum Factor ETF (MTUM Quick QuoteMTUM - Free Report) , Invesco S&P MidCap Momentum ETF (XMMO Quick QuoteXMMO - Free Report) , Invesco S&P 500 Momentum ETF (SPMO) and Invesco S&P SmallCap Momentum ETF (XSMO Quick QuoteXSMO - Free Report) .

High-beta ETFs experience larger gains than their broader market counterparts in a bullish market, while momentum investing looks to capture profits from buying hot stocks, which have shown an uptrend over a few weeks or months (read: Time to Capitalize on Market Moves With Momentum ETFs?).

Court Ruling

The U.S. Court of International Trade delivered a significant legal setback to President Donald Trump's trade policy by ruling that he overstepped his authority in imposing sweeping tariffs under the International Emergency Economic Powers Act (IEEPA) of 1977. The court's unanimous decision invalidated the "Liberation Day" tariffs, which included a 10% baseline tariff on most imports and higher tariffs on goods from countries with significant trade surpluses, such as China and the European Union.

This ruling marks a significant de-escalation in U.S. trade protectionism, with immediate benefits for import-heavy industries and the broader equity market.

Solid NVIDIA Earnings

NVIDIA posted record-breaking fiscal first-quarter 2026 revenues, which topped estimates, driven by a booming data center business. Data Center revenues, which account for much of NVIDIA’s revenues, jumped 73% year over year to $39.1 billion. The report has reignited investor optimism, shifting focus back to the potential of AI.

EU Tariff Delay

The European Union agreed to accelerate tariff negotiations with the United States, easing fears of a trans-Atlantic trade war. The decision came after President Trump announced that the United States would postpone the implementation of a 50% tariff increase on all EU products, from June 1 to July 9, to allow time for further talks.

In a social media post on Friday, Trump threatened to impose a 50% tariff on EU goods, criticizing the 27-member bloc as “very difficult to deal with” on trade and claiming that negotiations were “going nowhere” (read: EU-US Trade Deal Hopes to Boost These ETFs).

ETFs in Focus

Invesco S&P 500 High Beta ETF (SPHB Quick QuoteSPHB - Free Report)  

Invesco S&P 500 High Beta ETF tracks the performance of 101 stocks from the S&P 500 Index with the highest beta over the past 12 months. About 42.2% of the portfolio is allotted to information technology, while industrials and consumer discretionary round off the next two spots with a double-digit allocation each. Invesco S&P 500 High Beta ETF has amassed $390.7 million in its asset base and charges 0.25% in expense ratio. The ETF trades in an average daily volume of 375,000 shares.

iShares MSCI USA Momentum Factor ETF (MTUM Quick QuoteMTUM - Free Report)

iShares MSCI USA Momentum Factor ETF follows the MSCI USA Momentum SR Variant Index, holding 123 stocks and exhibiting a relatively higher price momentum. It is skewed toward the financials and information technology sector, with at least 23%, while industrials, consumer staples and communication round off the next three positions. iShares MSCI USA Momentum Factor ETF has accumulated $17 billion in its asset base and trades in a solid volume of about 1 million shares a day and charges 15 bps in fees per year.

Invesco S&P MidCap Momentum ETF (XMMO Quick QuoteXMMO - Free Report)  

Invesco S&P MidCap Momentum ETF follows the S&P Midcap 400 Momentum Index, which is designed to identify mid-cap firms having the highest momentum scores. It holds 78 stocks in its basket, with key holdings in financials, industrials, and consumer staples. Invesco S&P MidCap Momentum ETF has AUM of $3.8 billion and charges 39 bps in annual fees. It trades in an average daily volume of 200,000 shares and has a Zacks ETF Rank #2 (Buy).

Invesco S&P 500 Momentum ETF (SPMO)

Invesco S&P 500 Momentum ETF tracks the S&P 500 Momentum Index, which measures the performance of stocks in the S&P 500 index that have a high "momentum score.” It holds 100 securities in its basket and charges 13 bps in fees per year. Information technology and financials are the top sectors with at least 20% share each, while consumer discretionary, communication services and consumer staples also receive double-digit allocations. Invesco S&P 500 Momentum ETF has an AUM of $7.7 billion and trades in an average daily volume of 1.5 million shares.

Invesco S&P SmallCap Momentum ETF (XSMO Quick QuoteXSMO - Free Report)

Invesco S&P SmallCap Momentum ETF offers exposure to companies in the S&P SmallCap 600 Index having the highest “momentum scores.” It tracks the S&P Smallcap 600 Momentum Index, holding 118 stocks in its basket with key holdings in financials, industrials, and consumer discretionary. Invesco S&P SmallCap Momentum ETF has gathered $1.5 billion in its asset base and charges 39 bps in annual fees. The fund trades in an average daily volume of 230,000 shares and has a Zacks ETF Rank #3 (Hold) (read: 3 Factors That Could Give Struggling Small-Cap ETFs a Boost).