Top-Performing ETF Areas of Last Week Show Strong Market Gains

New York: Last week was a good one for Wall Street. The S&P 500 climbed about 2.9%, the Dow Jones jumped around 3.7%, and the Nasdaq Composite rose about 2.5%. It was the biggest weekly gain for both the Dow and S&P since the presidential election in November.

The positive vibes came from a few key factors. A truce in Gaza, easing inflation, and strong earnings from major banks really helped boost the market. Most big banks reported better-than-expected earnings, which was a nice surprise.

Retail sales, however, grew slower than expected in December, rising just 0.4% instead of the anticipated 0.6%. This slower growth sparked hopes for a more lenient Federal Reserve, which in turn lifted the broader market.

Inflation also ticked up for the third month in a row, hitting 2.9% in December, which was in line with what experts expected. This increase was partly due to last year’s low numbers, especially in energy.

In a significant development, Israel and Hamas reached a ceasefire agreement on Wednesday, aiming to end the 15-month conflict in Gaza. This deal, which includes a hostage release, is set to be implemented in three phases and is based on a framework proposed by the Biden administration.

Bitcoin made a comeback last week, gaining about 9%. Stocks linked to Bitcoin, like MicroStrategy and Coinbase, saw impressive gains too. MicroStrategy’s shares surged around 28%, while Coinbase’s jumped about 20%.

With all this happening, several exchange-traded funds (ETFs) also performed well last week. The YieldMax MSTR Option Income Strategy ETF rose 13.3%, while the First Trust SkyBridge Crypto Industry & Digital Economy ETF gained 13.2%. Other notable ETFs included the STKD Bitcoin & Gold ETF and the Fidelity Wise Origin Bitcoin Fund, both of which also saw solid increases.

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