Wall Street witnessed moderate movement last week with the S&P 500 and the Nasdaq gaining about 0.7% and 2.7%, respectively, and the Dow Jones showing no movement. While the reopening of economies boosted risk-on sentiments,the Fed’s somber outlook on the coronavirus-stricken economy gave it a boost.
On policy matters, the Fed committee members expressed skepticism over using bond purchases to control the government bond yield curve, per CNBC. As a result, post meeting, the benchmark 10-year U.S. treasury yield gained by one bps to 0.68% on Aug 19 from a day earlier. The yield on two-year treasuries was steady at 0.14%. Overall, the yield curve slightly steepened on Aug 19.
Against this backdrop, below we highlight a few leveraged/inverse ETF areas that won big time last week.
The tech and communication sector is a coronavirus winner. Social distancing triggered by the coronavirus outbreak has benefited communications and activities over Internet in recent months. Top mutual funds continue to invest heavily in the tech sector, per Investor’s Business Daily.
The housing sector has been gaining momentum lately. According to the U.S. Housing and Urban Development and Commerce Department, total housing starts rose 22.6% (the biggest gain since October 2016) to a seasonally adjusted annual rate of 1.50 million units in July per a National Association of Home Builders’ (NAHB) press release. The figure is above June’s revised figure of 1.22 million units. The reading surpassed analysts’ expectations of 1.24 million units, per a Reuters’ poll.
Technology stocks and ETFs have been star performers of this year. The coronavirus outbreak could not take the sheen out of this sector, rather added more to it. Social distancing norms compelled people to stay at home, binge on online shopping and work as well as learn from home. The key tech stocks put up a strong show last week.
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Direxion Daily CSI China Internet Index Bull 2X Shares (CWEB): ETF Research Reports
ProShares UltraPro QQQ (TQQQ): ETF Research Reports
Direxion Daily FTSE China Bull 3X Shares (YINN): ETF Research Reports
Direxion Daily Technology Bull 3X Shares (TECL): ETF Research Reports
Direxion Daily Homebuilders Supplies Bull 3X Shares (NAIL): ETF Research Reports
ProShares Ultra Technology (ROM): ETF Research Reports
MicroSectors FANG Index 3X Leveraged ETN (FNGU): ETF Research Reports
MicroSectors FANG Index 2X Leveraged ETN (FNGO): ETF Research Reports
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Direxion Daily CSI China Internet Index Bull 2X Shares (CWEB): ETF Research Reports
ProShares UltraPro QQQ (TQQQ): ETF Research Reports
Direxion Daily FTSE China Bull 3X Shares (YINN): ETF Research Reports
Direxion Daily Technology Bull 3X Shares (TECL): ETF Research Reports
Direxion Daily Homebuilders Supplies Bull 3X Shares (NAIL): ETF Research Reports
ProShares Ultra Technology (ROM): ETF Research Reports
MicroSectors FANG Index 3X Leveraged ETN (FNGU): ETF Research Reports
MicroSectors FANG Index 2X Leveraged ETN (FNGO): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report