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Yahoo
a day ago
- Business
- Yahoo
QQQ And Friends Hit Highs: Tech ETFs Thrive Despite Trade Turbulence
ETFs that follow the tech-saturated Nasdaq 100 surged to record-time highs on Thursday, despite the U.S. imposing its broadest tariff increase in nearly 100 years. QQQ is hovering around its all-time highs. Track live prices here. Leading the pack were: Invesco QQQ Trust (NASDAQ:QQQ) Invesco NASDAQ 100 ETF (NASDAQ:QQQM) Direxion NASDAQ 100 Equal Weighted Index Shares (NASDAQ:QQQE) These ETFs have bucked rising geopolitical tensions and a surge in trade-related uncertainty, reflecting investor confidence in the stability of big-cap U.S. techs and the long-term prospects of AI-related innovation. Notably, QQQ posted an 8.5% return in the past six months, besting the S&P 500's 5.3%. Its outperformance has carried over into the second half of the year with renewed momentum sparked by a combination of fundamental and policy tailwinds. ETFs Concentration and Composition The Nasdaq 100 has been disproportionately influenced by a small number of dominant tech stocks. The Magnificent Seven — Meta Platforms Inc (NASDAQ:META), Alphabet Inc. (NASDAQ:GOOGL)(NASDAQ:GOOG), Inc (NASDAQ:AMZN), Apple Inc (NASDAQ:AAPL), NVIDIA Corp (NASDAQ:NVDA), Microsoft Corp (NASDAQ:MSFT) and Tesla Inc (NASDAQ:TSLA) — together represent more than 40% of QQQ's overall weight. Invesco's NASDAQ 100 ETF (NASDAQ:QQQM), with its lower cost, has traced an analogous path higher, and thus is an attractive choice for long-term, buy-and-hold investors. QQQE, meanwhile, with its equal weighting, has provided more exposure to mid-cap constituents of the index, tempering reliance on massive-cap tech. Drivers of the Nasdaq ETF rally Semiconductor Exemptions Ease Trade Concerns: Though President Donald Trump's broad tariffs now include almost 200 nations, with average effective rates set to hit 18.6%, according to the Yale Budget Lab as cited on Yahoo Finance, the administration indicated exemptions for large semiconductor companies, putting the brakes on concerns of disruption in the stocks like Advanced Micro Devices Inc (NASDAQ:AMD) (+5.7%) and Nvidia (+0.8%) cheered, boosting ETFs with strong holdings in the companies. Apple's $100 Billion U.S. Investment Provides Tailwind: Apple's declaration of a $100 billion domestic manufacturing investment, including new iPhone and Watch glass manufacturing in Kentucky, further bolstered investor confidence. Since Apple holds significant weightings in Nasdaq-tracking ETFs (over 7% in QQQ), the action provided support to fund performance. AI-Centric Capex Cycle Supports Broader Tech Rally: Major U.S. cloud providers and hyperscalers, including Amazon, Meta, Alphabet and Microsoft, have significantly increased their capital expenditure to meet AI infrastructure demands. This has directly benefited hardware enablers such as Micron Technology Inc (NASDAQ:MU), Broadcom Inc (NASDAQ:AVGO), Arista Networks Inc (NYSE:ANET) and Dell Technologies Inc (NYSE:DELL), many of which feature prominently across Nasdaq Securities estimates a 51% YoY increase in combined data center investment by a few of these firms in 2025, according to Investors Business Daily. Growing Expectations of a Fed Rate Cut: The appointment of Stephen Miran to the Federal Reserve Board, upon Adriana Kugler's resignation, has fueled anticipation of more dovish monetary policy. Adding to soft labor market conditions and climbing jobless claims, the CME FedWatch Tool now indicates a 89.4% chance of a 25-basis-point rate cut at the next September meeting. Nasdaq ETFs, with their growth bias and sensitivity to duration, historically perform better in environments of declining interest rates. Conclusion In spite of the imposition of one of the most protectionist U.S. trade policy measures in decades, Nasdaq-tracking ETFs have surged on to new highs. The resilience is supported by selective exemption from tariffs for key industries, increasing investment in AI infrastructure, a possible shift in Fed policy and corporate efforts such as Apple's reshoring initiative. With AI increasingly defining the investment environment and macro conditions favoring growth stocks in turn, Nasdaq-centric ETFs look to enjoy both structural and cyclical tailwinds even in a high-tariff environment. Read Next: Photo: Drozd Irina via Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article QQQ And Friends Hit Highs: Tech ETFs Thrive Despite Trade Turbulence originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
Yahoo
4 days ago
- Business
- Yahoo
Now Trading: Direxion's New Bull & Bear ETFs for Shopify & Lockheed Martin
Capture Daily Moves in Two of the Most Event-Driven Stocks NEW YORK, NY / / August 6, 2025 / Direxion, a leading provider of ETFs for tactical traders, and a pioneer in Single Stock Daily Leveraged & Inverse ETFs, today launched four new funds offering amplified, or inverse, exposure to two high-profile names: Shopify Inc. (SHOP) and Lockheed Martin Corporation (LMT). These ETFs provide traders with the tools to express short-term views on both e-commerce momentum and global defense trends. Invest in Gold Thor Metals Group: Best Overall Gold IRA Priority Gold: Up to $15k in Free Silver + Zero Account Fees on Qualifying Purchase American Hartford Gold: #1 Precious Metals Dealer in the Nation The new funds include: Direxion Daily SHOP Bull 2X ETF (Ticker: SHPU) Direxion Daily SHOP Bear 1X ETF (Ticker: SHPD) Direxion Daily LMT Bull 2X ETF (Ticker: LMTL) Direxion Daily LMT Bear 1X ETF (Ticker: LMTS) "These two companies sit on opposite ends of the tactical spectrum - Shopify represents high-growth, high-volatility e-commerce exposure, while Lockheed Martin is a defense sector anchor tied to long-term government spending and global events," said Mo Sparks, Chief Product Officer at Direxion. "Whether traders are reacting to earnings, geopolitical headlines, or sector rotations, these new ETFs are the first to offer a powerful way to express conviction toward each with tactical precision." Designed for active traders, Direxion's pairs of Single Stock Leveraged & Inverse ETFs are built for short-term trading - not long-term investing. These ground-breaking trading tools are intended for experienced traders with a high risk tolerance. Unlike traditional ETFs, or even other leveraged and/or inverse ETFs, these products track the price of a single stock rather than an index, offering no diversification benefits. All Direxion Leveraged and Inverse ETFs are intended only for investors with an in-depth understanding of the risks associated with seeking leveraged investment results, and who plan to actively monitor and manage their positions. There is no guarantee these ETFs will meet their objective. Please visit the Direxion Leveraged and Inverse ETF Education Center, where you will find educational brochures, videos, and a self-paced online course to help you understand if Leveraged and Inverse ETFs - including Single Stock Daily LETFs - are right for you. About Direxion: Direxion equips investors who are driven by conviction with ETF solutions built for purpose and fine-tuned for precision. These solutions are available for a broad spectrum of investors, whether executing short-term tactical trades, or investing in thematic strategies. Direxion's reputation is founded on developing products that precisely express market perspectives and allow investors to manage their risk exposure. Founded in 1997, the company has approximately $54.6 billion in assets under management as of June 30, 2025. For more information, please visit There is no guarantee that the Funds will achieve their investment objectives. For more information on all Direxion Shares ETFs, go to or call us at 866.301.9214. An investor should carefully consider a Fund's investment objective, risks, charges, and expenses before investing. A Fund's prospectus and summary prospectus contain this and other information about the Direxion Shares. To obtain a prospectus and summary prospectus call 866.476.7523 or visit our website at A Fund's prospectus and summary prospectus should be read carefully before investing. Investing in the funds involves a high degree of risk. Unlike traditional ETFs, or even other leveraged and/or inverse ETFs, these leveraged and/or inverse single-stock ETFs track the price of a single stock rather than an index, eliminating the benefits of diversification. Leveraged and inverse ETFs pursue daily leveraged investment objectives, which means they are riskier than alternatives which do not use leverage. They seek daily goals and should not be expected to track the underlying stock's performance over periods longer than one day. They are not suitable for all investors and should be utilized only by investors who understand leverage risk and who actively manage their investments. The Funds will lose money if the underlying stock's performance is flat, and it is possible that the Bull Fund will lose money even if the underlying stock's performance increases, and the Bear Fund will lose money even if the underlying stock's performance decreases, over a period longer than a single day. Investing in the Funds is not equivalent to investing directly in SHOP or LMT. Direxion Shares Risks - An investment in a Fund involves risk, including the possible loss of principal. Each Fund is non-diversified and includes risks associated with a Fund concentrating its investments in a particular security, industry, sector, or geographic region which can result in increased volatility. A Fund's investments in derivatives such as futures contracts and swaps may pose risks in addition to, and greater than, those associated with directly investing in securities or other investments, including imperfect correlations with underlying investments or the Fund's other portfolio holdings, higher price volatility and lack of availability. As a result, the value of an investment in a Fund may change quickly and without warning. Leverage Risk - The Bull Fund obtains investment exposure in excess of its net assets by utilizing leverage and may lose more money in market conditions that are adverse to its investment objective than a fund that does not utilize leverage. A total loss may occur in a single day. Leverage will also have the effect of magnifying any differences in the Fund's correlation with SHOP or LMT and may increase the volatility of the Bull Fund. Daily Correlation Risk - A number of factors may affect the Bull Fund's ability to achieve a high degree of correlation with SHOP or LMT and therefore achieve its daily leveraged investment objective. The Bull Fund's exposure to SHOP or LMT is impacted by SHOP or LMT's movement. Because of this, it is unlikely that the Bull Fund will be perfectly exposed to SHOP or LMT at the end of each day. The possibility of the Bull Fund being materially over- or under-exposed to SHOP or LMT increases on days when SHOP or LMT is volatile near the close of the trading day. Daily Inverse Correlation Risk - A number of factors may affect the Bear Fund's ability to achieve a high degree of inverse correlation with SHOP or LMT and therefore achieve its daily inverse investment objective. The Bear Fund's exposure to SHOP or LMT is impacted by SHOP or LMT's movement. Because of this, it is unlikely that the Bear Fund will be perfectly exposed to SHOP or LMT at the end of each day. The possibility of the Bear Fund being materially over- or under-exposed to SHOP or LMT increases on days when SHOP or LMT is volatile near the close of the trading day. Shopify, Inc. Investing Risk - SHOP faces risks associated with: growth may be difficult to sustain; highly competitive business structure; data breach and privacy concerns; impact of the global economic conditions may adversely affect business operations; reliance on limited number of suppliers for payment processing; use of artificial intelligence may present additional risks; among other risks. Lockhead Martin Corporation Investing Risk - LMT faces risks associated with: dependance on U.S. Government contracts; the F-35 program which is approximately 26% of the company's net sales is reliant on continued government funding; extensive procurement laws and regulations; variability in current contracts and programs as well as performance and ability to control costs; more audits due to government contracts; heavy dependance on suppliers and subcontractors; reliant on development of new technology; public health events; international sales pose different economic, regulatory and competitive risks; among other risks. Information Technology Sector Risk - The value of stocks of information technology companies and companies that rely heavily on technology is particularly vulnerable to rapid changes in technology product cycles, rapid product obsolescence, government regulation, and competition, both domestically and internationally, including competition from competitors with lower production costs. Industrials Sector Risk - Stock prices of issuers in the industrials sector are affected by supply and demand both for their specific product or service and for industrials sector products in general. Aerospace and Defense Industry Risk - The aerospace and defense industry can be significantly affected by government regulation and spending policies because companies involved in this industry rely, to a significant extent, on government demand for their products and services. Additional risks of each Fund include Effects of Compounding and Market Volatility Risk, Derivatives Risk, Counterparty Risk, Rebalancing Risk, Intra-Day Investment Risk, Industry Concentration Risk, Market Risk, Indirect Investment Risk, and Cash Transaction Risk. Additionally, for the Direxion Daily SHOP Bear 1X ETF and Direxion Daily LMT Bear 1X ETF, Shorting or Inverse Risk. Please see the summary and full prospectuses for a more complete description of these and other risks of a Fund. Distributor: ALPS Distributors, Inc. CONTACT:Danielle Black, ADDitto Public Relationsdirexion@ SOURCE: DIREXION View the original press release on ACCESS Newswire
Yahoo
4 days ago
- Business
- Yahoo
Palantir Surges; Leveraged ETFs PTIR, PLTU Extend Record Run
Shares of Palantir Technologies (PLTR) rose sharply midday Tuesday after the company reported a blockbuster second quarter, sending its market cap to $413 billion. That move added fuel to the fire for two already red-hot leveraged exchange-traded funds: the GraniteShares 2x Long PLTR Daily ETF (PTIR) and the Direxion Daily PLTR Bull 2X Shares (PLTU). Both funds surged on the day and remain the top-performing U.S.-listed ETFs of the year. Each has more than tripled in value year to date, beyond Palantir's 131% gain. Palatir Growth Surprises Analysts Palantir's revenue increased 48% year over year to $1.01 billion in Q2, marking the fastest growth rate in four years and surpassing analyst estimates of $939 million. Full-year guidance of $4.15 billion also topped expectations of $3.91 billion. 'This was a phenomenal quarter. We continue to see the astonishing impact of AI leverage,' said CEO Alex Karp in a statement. Invest in Gold Priority Gold: Up to $15k in Free Silver + Zero Account Fees on Qualifying Purchase Thor Metals Group: Best Overall Gold IRA American Hartford Gold: #1 Precious Metals Dealer in the Nation Palantir, long known for its government and defense contracts, is rapidly expanding into the commercial sector. U.S. commercial revenue surged 93% in the quarter to $306 million, outpacing U.S. government revenue, which rose 53% to $426 million. The company appears to be benefiting from its position at the intersection of two key growth themes: artificial intelligence and national defense. With the adoption of artificial intelligence accelerating and military spending on the rise globally, Palantir's product suite has struck a chord with both enterprises and governments. Valuation Risk But the biggest criticism of the stock remains its valuation. Palantir trades at 86x forward revenue estimates, the highest multiple among its software peers. On the earnings side, the numbers are even more extreme: 241x forward adjusted earnings and 371x forward GAAP earnings. Those sky-high multiples require near-flawless execution, something skeptics remain wary of. Of the 31 analysts tracked by Bloomberg, only 10 rate the stock a buy, while 17 have a hold and 4 recommend selling. The average 12-month price target is $142, well below the current share price of $175. Jefferies analysts, who have an underperform rating and a $60 price target, praised the quarter but cautioned that the stock's valuation is 'on a different planet.' For now, though, investors—especially retail traders—seem unfazed. And leveraged ETF holders are reaping the rewards. PTIR and PLTU now manage nearly $700 million and $600 million in assets, respectively, fueled by both performance gains and continued | © Copyright 2025 All rights reserved Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
29-07-2025
- Business
- CNBC
Yones: Positive China news boosts Yin; negative headlines drive Yang
Douglas Yones, Direxion CEO, tells Worldwide Exchange traders are piling into leveraged China ETFs like Yin and Yang, with flows driven more by headlines than fundamentals.
Yahoo
02-07-2025
- Business
- Yahoo
Leveraged Energy ETFs to Tap Oil Price Surge
Oil prices have surged in recent weeks following the conflict between Israel and Iran. The latest catalyst came over the weekend when the U.S. military launched targeted strikes on Iran's nuclear facilities in Natanz and Fordow. This marks a significant escalation in the U.S.-Iran tensions and raises fears of a broader Middle East oil futures rose to $79.00 per barrel, whereas West Texas Intermediate crude futures jumped to $73.84 per barrel. Both contracts initially surged as high as 4% to four-month highs, with Brent briefly rising as high as $81 a barrel (read: Oil ETFs Jump on Escalation in Middle East Tensions). Given this, the appeal for leveraged energy ETFs has increased as these offer huge gains in a short time compared with simple products. Investors can tap the bullish trend in the sector with the help of leveraged ETFs. These are ProShares Ultra Oil & Gas ETF DIG, Direxion Daily Energy Bull 2X Shares ERX, Direxion Daily S&P Oil & Gas Exploration & Production Bull 2X Shares GUSH and MicroSectors Oil & Gas Exploration & Production 3X Leveraged ETN can retaliate in response, attack the Gulf oil infrastructure and disrupt shipping lanes. The situation has reignited fears of supply disruptions, particularly the potential closure of the Strait of Hormuz, which transports around one-third of the world's seaborne oil. Analysts warned that disruption of up to 20 million barrels per day in extreme retaliation could be at stake. Analysts warn that if the conflict drags on or draws in other regional powers, crude prices could breach the $100 mark. JP Morgan analysts forecast that under a "severe outcome," a closure of the Strait of Hormuz can push oil prices to $120-$130 per the Energy Information Administration ('EIA') slashed its U.S. crude oil production estimates by 50,000 barrels for 2026 to 13.37 million barrels per day. This will be the first decline on an annual basis in U.S. output since 2021. The EIA left projected output growth for 2025 unchanged at 210,000 barrels per the oil cartel, OPEC+, agreed to increase oil output by 411,000 barrels a day (bpd) in July. By the end of July, more than 60% of the bloc's planned 2.2 million bpd increase will be implemented (read: Here's Why Energy ETFs Outperformed Last Week: Will the Rally Last?).With OPEC+ holding roughly 6 million barrels per day in spare capacity, and U.S. production likely to ramp up at prices above $70 per barrel, the upside to oil prices can be we have profiled the above-mentioned ETFs:ProShares Ultra Oil & Gas ETF (DIG)ProShares Ultra Oil & Gas ETF seeks to deliver twice (2X or 200%) the daily performance of the S&P Energy Select Sector Index. It has been able to manage $81.5 million in its asset base and trades in a good volume of about 60,000 shares per day on average. DIG charges 95 bps in fees per Daily Energy Bull 2X Shares (ERX)Direxion Daily Energy Bull 2X Shares creates a two-times leveraged position in the Energy Select Sector Index while charging 89 bps in fees a year. Direxion Daily Energy Bull 2X Shares is a popular and liquid option in the energy leveraged space, with an AUM of $235.3 million and an average trading volume of around 473,000 Daily S&P Oil & Gas Exploration & Production Bull 2X Shares (GUSH)Direxion Daily S&P Oil & Gas Exploration & Production Bull 2X Shares offers a two-times exposure to the daily performance of the S&P Oil & Gas Exploration & Production Select Industry Index. It has accumulated $275.5 million in its asset base and the average daily volume is solid at 1.4 million shares. Direxion Daily S&P Oil & Gas Exploration & Production Bull 2X Shares charges 91 bps in annual Oil & Gas Exploration & Production 3X Leveraged ETN (OILU)MicroSectors Oil & Gas Exploration & Production 3X Leveraged ETN is linked to three times leveraged performance of the MicroSectors Oil & Gas Exploration & Production Index. The index provides exposure to large-capitalization companies that are domiciled and listed in the United States and active in the exploration and production of oil and gas. MicroSectors Oil & Gas Exploration & Production 3X Leveraged ETN has amassed $37.4 million in its asset base and trades in a lower average volume of 294,000 million shares. It charges investors 95 bps in annual fees and expenses. As a caveat, investors should note that these products are extremely volatile and suitable only for short-term traders. Additionally, the daily rebalancing — when combined with leverage — may make these products deviate significantly from the expected long-term performance figures (see: all the Leveraged Equity ETFs here).Still, for ETF investors who are bullish on the energy sector for the near term, either of the above products can be an interesting choice. Clearly, a near-term long can be intriguing for those with high risk tolerance and a belief that the trend is the friend in this corner of the investing world. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Direxion Daily Energy Bull 2X Shares (ERX): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
