Wall Street delivered mixed-to-downbeat performances last week due to rising rates. The S&P 500 (down 0.2%), the Nasdaq (down 0.4%) and the Russell 2000 (down 0.2%) slumped last week while the Dow Jones (up 0.1%) added slight gains.
Worries over longer-than-expected higher interest rates have been playing foul on the stock market in recent weeks. The series of upbeat economic data as well as the latest warning from the Fed officials revived speculation that the Fed could lift interest rates again, if not in September.
A Recap of Corporate News
Among key corporate events, at its annual California launch event, Apple AAPL revealed a suite of devices. The event took an unexpected turn in terms of pricing, with Apple maintaining its price range for most products, the notable exception being iPhone Max (read: Apple ETFs in Focus Post iPhone 15 Launch).
British chipmaker Arm Holdings Plc made a strong debut on Nasdaq under the symbol (ARM) on Thursday. The stock soared as much as 21% on the first day, pushing the market cap to more than $65 billion. The company raised $4.87 billion in its initial public offering (read: Can Blockbuster Arm IPO Boost Semiconductor ETFs?).
A Recap of New Economic Data
The annual inflation rate in the United States accelerated for a second straight month to 3.7% in August from 3.2% in July, above market forecasts of 3.6%. Oil prices have been on the rise in the previous two months, which has been held responsible for the high price inflation. Core inflation rate however, which excludes food and energy, slowed for the fifth month to 4.3%, in line with market expectations (read: 5 Sector ETFs to Fight Sticky Inflation).
Sales at U.S. retailers increased 0.6% in August from July, way more than analysts’ estimate of a meager rise of 0.1%. Retail sales grew last month at a slightly faster pace than July’s revised reading of a gain of 0.5% and marked the fifth successive monthly increase in sales at retail outlets. Last month, retail sales increased 2.5% year over year.
In an attempt to tame rising consumer prices, the European Central Bank (ECB) has opted to increase interest rates to an unprecedented level. However, the euro's value declined on Sep 14, 2023 after the central bank hinted at the conclusion of its policy tightening due to economic slowdown (read: Time to Tap Eurozone ETFs as Rate-Hike Cycle Nearing End?).
Against this backdrop, below we highlight a few winning ETFs of last week.
ETFs in Focus
Roundhill Cannabis ETF (WEED) – Up 13.6%
The Roundhill Cannabis ETF is designed to offer investors exposure to the cannabis sector. The fund charges 40 bps in fees.
Sprott Junior Uranium Miners ETF (URNJ) – Up 13.1%
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. The fund charges 80 bps in fees.
Subversive Decarbonization ETF (DKRB) – Up 9.2%
The Subversive Decarbonization ETF primarily invests in equity securities of companies that are decarbonizing the energy sector. The fund charges 75 bps in fees.
Innovator Hedged TSLA Strategy ETF (TSLH) – Up 7.4%
The Innovator Hedged TSLA Strategy ETF seeks to track the upside performance of Tesla. Inc, to a cap, with a maximum quarterly loss of 10%, over the outcome period. The fund charges 79 bps in fees.
Defiance Pure Electric Vehicle ETF EVXX – Up 6.4%
The Defiance Pure Electric Vehicle ETF seeks to provide investment results, before fees and expenses, that track the performance of a basket of common shares, which are equally-weighted on a quarterly basis, of the five largest electric vehicle manufacturers included in the Solactive Pure US Electric Vehicle Index. The fund charges 68 bps in fees.
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Apple Inc. (AAPL): Free Stock Analysis Report
Roundhill Cannabis ETF (WEED): ETF Research Reports
Innovator Hedged TSLA Strategy ETF (TSLH): ETF Research Reports
Subversive Decarbonization ETF (DKRB): ETF Research Reports
Sprott Junior Uranium Miners ETF (URNJ): ETF Research Reports
Defiance Pure Electric Vehicle ETF (EVXX): ETF Research Reports