Strong performance in ETFs due to various factors such as Bitcoin market growth and easing tensions

From Nasdaq
January 20, 2025 2:00 pm:

Several ETFs posted strong returns last week due to factors like slowing inflation, a booming Bitcoin market, and easing tensions in the Middle East. Wall Street saw gains across major indexes, with the S&P 500 up 2.9%, the Dow Jones up 3.7%, and the Nasdaq Composite up 2.5%, marking their biggest weekly advances since November.

Inflation in the US rose to 2.9% in December 2024, the third consecutive monthly increase. This was partly influenced by low base effects from the previous year, especially in energy prices. Retail sales in December grew slower than expected, suggesting a potential dovish stance from the Federal Reserve, positively impacting the broader market.

A ceasefire agreement was reached between Israel and Hamas to end the 15-month war in Gaza, easing regional tensions. Retail sales in December rose by 0.4%, lower than the 0.6% expected by economists. Bitcoin rebounded by about 9% last week, boosting securities linked to Bitcoin mining and trading, with shares of MicroStrategy and Coinbase seeing significant gains.

ETFs like YieldMax MSTR Option Income Strategy ETF and First Trust SkyBridge Crypto Industry & Digital Economy ETF saw gains of 13.3% and 13.2% respectively. Other ETFs like STKD Bitcoin & Gold ETF and Fidelity Wise Origin Bitcoin Fund also experienced increases last week, reflecting the positive market sentiment towards cryptocurrencies.

Read more at Nasdaq: Top-Performing ETF Areas of Last Week