Best-Performing ETFs of Last Week

Wall Street was upbeat last week. The S&P 500 logged its fourth consecutive day of gains last week on Friday as investors assessed fresh inflation data that strengthened the case for a Federal Reserve interest rate cut this month. Overall, the S&P 500 gained 0.9% last week, the Dow Jones added 1.4% and the Nasdaq advanced 0.9%.

Inflation Data Offers a Stronger Case for a Likely Rate Cut

Markets reacted to new economic releases, including the core personal consumption expenditures (PCE) price index for September, which was delayed due to the U.S. government shutdown. The Commerce Department reported that core PCE rose 2.8% year over year, slightly below the 2.9% estimate, as quoted on CNBC.

On a monthly basis, core PCE increased 0.2%, matching expectations. Meanwhile, headline PCE rose 0.3% for the month, putting the annual inflation rate also at 2.8%.

Consumer Sentiment Strengthens

The University of Michigan’s consumer sentiment survey came in stronger than expected for December, showing improved confidence and updated views on short- and long-term inflation expectations, as quoted on the above-mentioned CNBC article.

With inflation appearing manageable, investor attention has shifted toward labor market data, which has recently shown signs of cooling. This has boosted expectations that the Fed could enact a rate cut this month.

Traders are now pricing in an 86.2% probability of a quarter-point rate cut at the Federal Reserve’s upcoming meeting next Wednesday (at the time of writing), according to the CME FedWatch Tool — indicating a sharp increase from 66.9% a month ago.

Netflix-Warner Bros. Discovery Deal in Focus

Netflix NFLX announced a deal to acquire Warner Bros. Discovery’s film and streaming assets for $72 billion. The deal is expected to close within 12 to 18 months, as quoted on CNBC. Netflix stock was down nearly 3%, while Warner Bros. Discovery surged more than 6% on Dec. 5, 2026.

However, a senior administration official told CNBC that the Trump administration considers the deal with “heavy skepticism,” adding uncertainty to the proposed acquisition.

Salesforce Shares Rally

Salesforce CRM shares popped 13.8% last week after the company posted better-than-expected third-quarter earnings on Wednesday despite falling short of Wall Street’s revenue estimates (read: Salesforce Earnings Beat, Offers Upbeat Guidance: ETFs in Focus).

Winning ETF Areas in Focus

Against this backdrop, below we highlight a few winning ETF areas from last week.

Cannabis

Roundhill Cannabis ETF WEED – Up 14.3%

AdvisorShares Pure US Cannabis ETF MSOS – Up 11.78%

Marijuana ETFs have been experiencing a dramatic resurgence lately. The jump has largely been driven by the U.S. administration’s notable push to legalize marijuana (read: From Loss to Lift-Off: Marijuana ETFs Rebound on Legalization Prospects).

Natural Gas

United States Natural Gas ETF UNG – Up 11.1%

United States 12 Month Natural Gas ETF UNL – Up 8.6%

 The likelihood of extreme cold gripping the United States, Asia, and parts of Europe is rising. A severe cold snap could push up power and natural gas prices. This is favoring natural gas ETFs.

Space ETF

Procure Space ETF UFO – Up 7.2%

Driven by groundbreaking innovation and growing investor interest, the space economy is taking off. According to a recent report by Seraphim Space, as quoted on Reuters, in the third quarter, global space investment soared to a record $3.5 billion, due to a broader base of startups and sustained defense spending.

Energy

State Street SPDR S&P Oil & Gas Equipment & Services ETF XES – Up 6.8%

WTI crude ETF USO jumped 1.8% last week.  Hence, XES ETF surged last week. The underlying S&P Oil & Gas Equipment & Services Select Industry Index represents the oil and gas equipment and services sub-industry portion of the S&P Total Markets Index.

Meme Stock

Roundhill Meme Stock ETF MEME – Up 6.7%

Meme stocks represent an exclusive set in the market, where retail participation and rapid sentiment shifts can cause extreme volatility. MEME is the only ETF in the world to offer targeted exposure to meme stocks. MEME is an actively managed ETF.

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This article originally published on Zacks Investment Research (zacks.com).

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