U.S. stocks closed higher on Friday, marking the fifth consecutive day of gains and capping off a robust week for Wall Street. Investors brushed off disappointing consumer sentiment data and lingering inflation concerns to quite an extent. The S&P 500 added 5.3%, the Dow Jones advanced 3.4% and the Nasdaq rose 7.2% last week.
Consumer Sentiment Slips, Inflation Expectations Rise
Despite the market's gains, economic data revealed persistent consumer unease. The University of Michigan’s consumer sentiment index fell to its second-lowest level on record. Moreover, consumers now anticipate prices to rise by 7.3% over the next year, indicating an increase from 6.5% the previous month.
Trade Truce Eases Investor Fears
Investor sentiment was buoyed by a 90-day tariff truce between U.S. and Chinese officials, calming fears of an escalating trade war. The agreement helped drive risk-on behavior and renewed confidence in the markets.
“Markets are repricing the stagflation risk right now,” said Jamie Cox, managing partner at Harris Financial Group, as quoted on CNBC. “The U.S. consumer may say he/she is worried, but they aren’t spending like they are. Consumption trumps all once you filter out all the noise.”
Looking Ahead: Tariff Uncertainty Remains
While the truce brought temporary relief, trade uncertainty looms. President Donald Trump announced that his administration will begin sending letters to various countries outlining new tariff rates within the next two to three weeks. These letters would replace direct negotiations in cases where time constraints exist.
Winning ETFs in Focus
Against this backdrop, below we highlight a few winning leveraged exchange-traded funds (ETFs) of the last week.
GraniteShares 2x Long SMCI Daily ETF SMCL – Up 98.2%
The GraniteShares 2x Long SMCI Daily ETF seeks daily investment results, before fees and expenses, of 2 times the daily percentage change of the common stock of Super Micro Computer Inc. The expense ratio of the fund is 1.20%.
Leverage Shares 2X Long COIN Daily ETF COIG – Up 68.8%
The Leverage Shares 2X Long COIN Daily ETF seeks daily levered investment results, before fees and expenses, of two times of the daily percentage change in the price of the common stock of COIN. The fund charges 75 bps in fees.
STKd 100% SMCI & 100% NVDA ETF SPCY – 64.0%
The STKd 100% SMCI & 100% NVDA ETF is an actively-managed exchange-traded fund that seeks to achieve its investment objective by employing derivatives, namely swap agreements and listed options contracts, to gain long exposure to two underlying securities, Super Micro Computer, Inc. and NVIDIA Corporation. The fund charges 129 bps in fees.
Defiance Daily Target 2X Long RKLB ETF RKLX – 52.97%
The Defiance Daily Target 2X Long RKLB ETF seeks daily leveraged investment results of two times the daily percentage change in the share price of Rocket Lab USA, Inc. The expense ratio of the fund is 1.31%.
Defiance Daily Target 2X Long HIMS ETF HIMZ – 49.21%
The Defiance Daily Target 2X Long HIMS ETF seeks daily leveraged investment results of two times the daily percentage change in the share price of Hims & Hers Health Inc. The expense ratio of the fund is 1.31%.
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