Wall Street was mixed last week due to mixed earnings and a subdued interest rate environment. The S&P 500, Dow Jones and Russell 2000 lost about 0.7%, 2.7% and 1% respectively last week. However, the tech-heavy Nasdaq Composite was 0.6%.
As for the benchmark US Treasury yield, the week started at 3.49% (reaching a weekly high and low of 3.53% and 3.37%, respectively) and ended at 3.48%. Growth stocks made a comeback on the odds of lower bond yields.
Yields fell at times as U.S. producer prices fell in December at their most since the start of the pandemic, continuing a months-long cooling of inflationary pressures and giving the Federal Reserve room to slow the pace of inflation. interest rate hikes.
Retail sales were also weak. U.S. sales fell 1.1% sequentially in December 2022, after an upward-revised decline of 1% in November and a worse-than-expected decline of 0.8%. Year-over-year retail sales grew 9.2% (read: ETFs and stocks will gain despite weak retail sales in December).
However, the banking results were not satisfactory. The fourth quarter earnings season for the S&P 500 did not start well. To date, the number and magnitude of positive earnings surprises reported by S&P 500 companies are below their 5- and 10-year averages, by FactSet.
Against this background, we highlight below some of the best performing ETF domains that have gained the most over the past week.
ProShares Bitcoin Strategy ETF BITO – Up 14.7%
VanEck Bitcoin XBTF ETF Strategy – Up to 14.5%
Bitcoin surged last week amid optimism that it might have bottomed out. Talk that inflation has peaked and will show a downward trend in 2023 is doing the rounds. This bolstered risky trading sentiments and favored the downed asset cryptocurrency.
iShares MSCI Turkey ETF TUR – Up 10.1%
The Borsa Istanbul 100 index traded around 5,440 in the second half of January, close to last year’s record highs, as investors continued to use the shares as a hedge against high inflation and a weak pound , and that Turkish residents were looking for assets to store their savings, per tradingeconomics. Turkey’s central bank kept its interest rate fixed at 9% for the second time in January, signaling the end of its rate-cutting cycle.
KraneShares European Carbon Allowance Strategy ETF KEUA – up 6.9%
The underlying IHS Markit Carbon EUA Index tracks the most traded EUA futures. Companies and countries have recently joined a climate initiative to transition to a low-carbon economy, aided by governments and demand from environmentally conscious consumers.
In addition to investing in renewable energy and carbon capture technologies, some companies use carbon offsets. Another way for companies to manage their carbon footprint is to buy and sell emission allowances. In the cap and trade system, a government sets a limit on overall emissions, which is tightened over time. Big carbon emitters have to buy these pollution permits to stay under the regularity caps.
Ark Next Generation Internet ETF ARKW – Up 5.5%
While rates dipped occasionally last week, growth stocks gained ground. Internet stocks took a big hit last year but bucked the downtrend to start 2023 as they perform better in a low rate environment.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.