Tech sector drives Wall Street rally last week with S&P 500 gaining 1.6% and Nasdaq soaring 3.2%.

From Nasdaq: 2024-06-17 08:00:00

Last week, Wall Street saw a mixed performance with the S&P 500 gaining 1.6%, the Dow Jones losing 0.5%, and the Nasdaq soaring 3.2%. This rally was mainly driven by the tech sector, fueled by softer inflation data that hinted at a possible Fed rate cut.

Inflation in the US slowed in May to 3.3%, the lowest in three months. Core CPI also dropped to 3.4%, below expectations. Wholesale inflation unexpectedly fell by 0.2% last month. The Fed has revised its rate cut predictions, now forecasting only one cut this year due to persistent inflation concerns.

Investor sentiment dropped in June, with the University of Michigan’s Consumer Sentiment Index falling to 65.6 from 69.1 in May, below expectations. Despite this, leveraged ETFs saw notable gains, including NVIDIA-focused ETFs and semiconductor ETFs like ProShares Ultra Semiconductors and Direxion Daily Semiconductor Bull 3x Shares.

The demand for advanced chips used in AI data centers is on the rise due to generative AI programs, benefiting companies like NVIDIA. NVIDIA gained 9.5% last week, with tech giants purchasing its chips for AI applications. Leveraged ETFs focused on Apple also saw gains, with Apple reclaiming its position as the world’s most valuable company.

For more insights on top-performing ETFs and investment opportunities, subscribe to Zacks’ free Fund Newsletter for weekly updates. Check out Zacks Investment Research for the latest stock recommendations and analysis. Keep an eye on the evolving AI chip landscape with companies like NVIDIA, Intel, and AMD driving technological advancements to meet market demand.



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