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MU-linked leveraged ETFs soared over 80% on booming AI memory chip demand.
IREN ETFs jumped over 72% after NVIDIA's $3.4B AI cloud services deal.
Rocket Lab ETFs rallied after earnings beat estimates and revenue topped views.
Wall Street offered an upbeat performance last week. State Street SPDR S&P 500 ETF Trust SPY has added about 2.4% last week. The tech-heavy Nasdaq-100 ETF Invesco QQQ Trust, Series 1 (QQQ - Free Report) jumped 5.4% last week. State Street SPDR Dow Jones Industrial Avg ETF Trust (DIA - Free Report) inched up just 0.5%.
Let’s find out the factors driving Wall Street’s risk-on sentiments.
Stability in Jobs Report
The U.S. economy added 115,000 nonfarm jobs in April, topping economists’ expectations of 55,000, though falling short of the revised 185,000 gain recorded in March. Federal Reserve Bank of Chicago President Austan Goolsbee described the labor market as stable rather than strong, as quoted on CNBC.
The latest data pointed to a labor market that remains resilient but continues to lose momentum compared to the rapid hiring pace seen in earlier years. The unemployment rate held steady at 4.3%.
Iran Deal Hopes
U.S. Secretary of State Marco Rubio said the United States was expecting a response on Friday from Iran on the proposal to end the war, as quoted on CNBC. The United States was awaiting response from Iran over proposals for ceasefire deal, per the Guardian.
Meanwhile, Kalshi traders now see a 58% chance a deal is reached by 2027, as quoted on CNBC. They also see a 47% chance an agreement is reached by September. Those levels are higher than before the Axios report, but still lower than the probability in the middle of April when there was more hope for a resolution to the conflict. In mid-April, odds that the two countries reach a nuclear deal by June were more than 70%, the same source revealed.
No Fed Rate Hike?
Markets currently expect the central bank to leave rates unchanged through the remainder of the year as inflation remains elevated and the labor market cools only gradually. Meanwhile, former Federal Reserve Governor Kevin Warsh is awaiting Senate confirmation to become the next Fed chair, per the above-said CNBC article.
Upbeat Earnings
The Q1 earnings season indicated a steadily improving earnings outlook. Estimates have moved higher for 7 of the 16 Zacks sectors since the quarter got underway. These sectors are: Tech, Energy, Basic Materials, Utilities, Industrials, Retail, and Business Services.
Winning Leveraged ETFs in Focus
Against this backdrop, below we highlight a few winning leveraged ETFs of last week.
MU-Heavy ETFs
Direxion Daily MU Bull 2X ETF (MUU - Free Report) – Up 83.5%
GraniteShares 2x Long MU Daily ETF (MULL) – Up 82.7%
One of the leading worldwide providers of semiconductor memory solutions -- Micron Technology’s (MU) shares gained 33.7% last week. Memory stocks continue to soar higher lately.
Memory chips — crucial for smartphones, laptops and other consumer electronics — are a critical component of artificial intelligence data centers and servers.
A supply crunch and rising prices in the memory chip market are expected to continue through 2027, according to a leading semiconductor industry executive, as mentioned on CNBC.
Iren-Heavy ETFs
Leverage Shares 2X Long IREN Daily ETF (IREG - Free Report) – Up 72.6%
Defiance Daily Target 2X Long IREN ETF (IRE) – Up 72.3%
IREN (IREN - Free Report) shares surged 32% last week. IREN, known for Bitcoin mining, secured a major AI infrastructure partnership with NVIDIA, as quoted on Crypto Briefing. NVIDIA will pay IREN $3.4 billion for managed GPU cloud services, alongside a five-year warrant to buy up to 30 million IREN shares at $70 each.
SanDisk (SNDK - Free Report) shares added about 27.8% last week. Sandisk stock surged amid AI infrastructure and memory demand. The company recently reported that its fiscal Q3 revenue soared 251% year over year, and Datacenter revenue grew 645%, as quoted on The Street. Post earnings, Zacks Consensus Estimate for earnings rose from $18.41 to $32.40 for the June quarter over the past 30 days. Earnings for the June quarter is expected to grow by a whopping 11,072.41% year over year.
Rocket-Lab-Heavy ETFs
Defiance Daily Target 2X Long RKLB ETF (RKLX - Free Report) – Up 65.5%
Rocket Lab (RKLB - Free Report) shares jumped about 35% last week. Rocket Lab came out with a quarterly loss of $0.02 per share versus the Zacks Consensus Estimate of a loss of $0.04. This compares to a loss of $0.12 per share a year ago. Rocket Lab posted revenues of $200.35 million, surpassing the Zacks Consensus Estimate by 4.67%. this upbeat performance led to the rally in shares.
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4 Leveraged ETF Winners of Last Week
Key Takeaways
Wall Street offered an upbeat performance last week. State Street SPDR S&P 500 ETF Trust SPY has added about 2.4% last week. The tech-heavy Nasdaq-100 ETF Invesco QQQ Trust, Series 1 (QQQ - Free Report) jumped 5.4% last week. State Street SPDR Dow Jones Industrial Avg ETF Trust (DIA - Free Report) inched up just 0.5%.
Let’s find out the factors driving Wall Street’s risk-on sentiments.
Stability in Jobs Report
The U.S. economy added 115,000 nonfarm jobs in April, topping economists’ expectations of 55,000, though falling short of the revised 185,000 gain recorded in March. Federal Reserve Bank of Chicago President Austan Goolsbee described the labor market as stable rather than strong, as quoted on CNBC.
The latest data pointed to a labor market that remains resilient but continues to lose momentum compared to the rapid hiring pace seen in earlier years. The unemployment rate held steady at 4.3%.
Iran Deal Hopes
U.S. Secretary of State Marco Rubio said the United States was expecting a response on Friday from Iran on the proposal to end the war, as quoted on CNBC. The United States was awaiting response from Iran over proposals for ceasefire deal, per the Guardian.
Meanwhile, Kalshi traders now see a 58% chance a deal is reached by 2027, as quoted on CNBC. They also see a 47% chance an agreement is reached by September. Those levels are higher than before the Axios report, but still lower than the probability in the middle of April when there was more hope for a resolution to the conflict. In mid-April, odds that the two countries reach a nuclear deal by June were more than 70%, the same source revealed.
No Fed Rate Hike?
Markets currently expect the central bank to leave rates unchanged through the remainder of the year as inflation remains elevated and the labor market cools only gradually. Meanwhile, former Federal Reserve Governor Kevin Warsh is awaiting Senate confirmation to become the next Fed chair, per the above-said CNBC article.
Upbeat Earnings
The Q1 earnings season indicated a steadily improving earnings outlook. Estimates have moved higher for 7 of the 16 Zacks sectors since the quarter got underway. These sectors are: Tech, Energy, Basic Materials, Utilities, Industrials, Retail, and Business Services.
Winning Leveraged ETFs in Focus
Against this backdrop, below we highlight a few winning leveraged ETFs of last week.
MU-Heavy ETFs
Direxion Daily MU Bull 2X ETF (MUU - Free Report) – Up 83.5%
GraniteShares 2x Long MU Daily ETF (MULL) – Up 82.7%
One of the leading worldwide providers of semiconductor memory solutions -- Micron Technology’s (MU) shares gained 33.7% last week. Memory stocks continue to soar higher lately.
Memory chips — crucial for smartphones, laptops and other consumer electronics — are a critical component of artificial intelligence data centers and servers.
A supply crunch and rising prices in the memory chip market are expected to continue through 2027, according to a leading semiconductor industry executive, as mentioned on CNBC.
Iren-Heavy ETFs
Leverage Shares 2X Long IREN Daily ETF (IREG - Free Report) – Up 72.6%
Defiance Daily Target 2X Long IREN ETF (IRE) – Up 72.3%
IREN (IREN - Free Report) shares surged 32% last week. IREN, known for Bitcoin mining, secured a major AI infrastructure partnership with NVIDIA, as quoted on Crypto Briefing. NVIDIA will pay IREN $3.4 billion for managed GPU cloud services, alongside a five-year warrant to buy up to 30 million IREN shares at $70 each.
Sandisk-Heavy ETFs
Tradr 2X Long SNDK Daily ETF SNXX – Up 67.4%
SanDisk (SNDK - Free Report) shares added about 27.8% last week. Sandisk stock surged amid AI infrastructure and memory demand. The company recently reported that its fiscal Q3 revenue soared 251% year over year, and Datacenter revenue grew 645%, as quoted on The Street. Post earnings, Zacks Consensus Estimate for earnings rose from $18.41 to $32.40 for the June quarter over the past 30 days. Earnings for the June quarter is expected to grow by a whopping 11,072.41% year over year.
Rocket-Lab-Heavy ETFs
Defiance Daily Target 2X Long RKLB ETF (RKLX - Free Report) – Up 65.5%
Rocket Lab (RKLB - Free Report) shares jumped about 35% last week. Rocket Lab came out with a quarterly loss of $0.02 per share versus the Zacks Consensus Estimate of a loss of $0.04. This compares to a loss of $0.12 per share a year ago. Rocket Lab posted revenues of $200.35 million, surpassing the Zacks Consensus Estimate by 4.67%. this upbeat performance led to the rally in shares.