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7 hours ago
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S&P 500 Wraps Up Best May Since 1990: 5 Top Stocks in the ETF
Wall Street recorded a historically strong May with the S&P 500 posting its best May performance since 1990, rising over 6% in the month, its biggest monthly gain since November 2023. The rally defied the traditional "Sell in May and Go Away" adage, driven by easing trade tensions, robust corporate earnings, and renewed investor optimism (read: 5 Sector ETFs That Beat the Market in May).SPDR S&P 500 ETF Trust SPY, the proxy version of the S&P 500 Index, has gained 6.3% over the past month. While many stocks in the ETF have performed well, we have highlighted five stocks that have gained more than 25% over the past month. These include NRG Energy Inc. NRG, Seagate Technology STX, Constellation Energy Corporation CEG, Insulet Corporation PODD and Microchip Technology Inc. growing geopolitical risks and mixed economic signals, investor sentiment remained resilient throughout May. Let's take a closer look at the key drivers behind the market rally: The stock rally was brought in by the comeback in the tech stocks due to strong earnings and investor confidence in AI-driven growth. After the initial shock of the tariffs, there were signs of de-escalation. Last month, the United States temporarily slashed tariffs on Chinese goods from 145% to 30%, while China will lower its retaliatory duties on U.S. goods from 125% to 10%. The temporary reduction in rates will run for 90 days. Meanwhile, Trump also postponed the implementation of a 50% tariff increase on all EU products, from June 1 to July 9. With this, the trade negotiations between the two countries have accelerated (read: EU-US Trade Deal Hopes to Boost These ETFs). Additionally, the U.S. Court of International Trade (CIT) blocked much of Trump's existing tariff policy, citing legal concerns. The ruling provided a short-lived boost to equities as the rally faded after a federal appeals court paused the CIT's decision, prolonging uncertainty over the legal future of the administration's 'Liberation Day' tariffs. The recent economic data showed that the Federal Reserve's preferred inflation measure cooled more than expected in April. April jobs data showed that the U.S. labor market remained resilient amid the tariff chaos. The economy added better-than-expected 177,000 jobs while the unemployment rate held steady at 4.2%, providing further assurance about the economy's a notable slowdown in consumer spending raised concerns about the underlying strength of the take a closer look at the fundamentals of SPY and the stocks behind this rally. SPDR S&P 500 ETF Trust holds 503 stocks in its basket, with each accounting for no more than 7% of the assets. This suggests a nice balance across each security and prevents heavy concentration. The fund is widely spread across sectors, with information technology, financials and consumer discretionary accounting for a double-digit allocation each. SPDR S&P 500 ETF Trust has an AUM of $603.5 billion and charges 9 bps in fees per year. It trades in an average daily volume of 68 million shares and has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook (see: all the Large Cap Blend ETFs here). NRG Energy is engaged in the production, sale and delivery of energy and energy products and services to residential, industrial as well as commercial consumers in major competitive power markets in the United States. The stock saw a solid earnings estimate revision of 19 cents over the past month for this year and has an estimated growth of 10.54%. NRG Energy soared about 36% in the past month and has a Zacks Rank #3 (Hold). Seagate Technology is a leading provider of data storage technology and infrastructure solutions. The company's primary product offering is hard disk drives, which are commonly referred to as disk drives, hard drives or HDDs. The stock saw a positive earnings estimate revision of 8 cents over the past month for the fiscal year (June 2025) and has an estimated growth of 516.3%. Seagate Technology jumped about 28% in a month and has a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks Energy provides electric power, natural gas and energy management services to 2 million customers across the continental United States. The stock gained 26.8% in a month and saw a negative earnings estimate revision of 7 cents for this year during the same time frame. Constellation Energy has an expected earnings growth rate of 9% for this year and a Zacks Rank #3. Insulet is a leading developer, manufacturer and marketer of the Omnipod Insulin Management System. The stock has risen 26.5% and saw a positive earnings estimate revision of 3 cents over the past month for this year, with an estimated growth rate of 33%. Insulet carries a Zacks Rank # Technology develops and manufactures microcontrollers, memory and analog and interface products for embedded control systems, which are small, low-power computers designed to perform specific tasks. The stock has gained more than 25% in a month and saw a solid earnings estimate revision of 19 cents for the fiscal year (ending March 2026). Its earnings are expected to break even this fiscal year. Microchip Technology has a Zacks Rank #3. 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 NRG Energy, Inc. (NRG) : Free Stock Analysis Report Constellation Energy Corporation (CEG) : Free Stock Analysis Report Seagate Technology Holdings PLC (STX) : Free Stock Analysis Report Microchip Technology Incorporated (MCHP) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports Insulet Corporation (PODD) : Free Stock Analysis Report 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
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4 days ago
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Tap Income ETFs Amid Trump Tariffs' Legal Trouble
U.S. stocks remained volatile as investors processed a renewed wave of tariff uncertainty. The turbulence followed a decision by a federal appeals court on May 29 to temporarily reinstate former President Trump's global tariffs. This move came just a day after a trade court had deemed many of the tariffs illegal. The temporary pause allows the appeals court time to fully review the case. The Trump administration is required to submit its legal briefings by June 9. In response to the appeals court's decision, the White House indicated it is ready to take the matter to the Supreme Court if necessary. Officials also mentioned exploring alternative ways to enforce the tariffs without depending on emergency powers. Despite the tariff uncertainty, there were some bright spots for investors during the week. Early signs of progress toward a U.S.-EU trade agreement helped buoy sentiment. Additionally, chipmaker NVIDIA's earnings report on May 28 drew significant market attention, offering insights into the tech sector's continued strength. Buying income-focused exchange traded funds (ETFs) amid the current economic and market uncertainty—especially related to tariffs, inflation, and potential legal battles—can be an intriguing move. Income ETFs typically focus on dividend-paying stocks, bonds, or a mix of income-generating assets. During times of market volatility, these products ensure regular source of current income. If capital appreciation is hard to come by, income ETFs allow investors to still generate a total return through dividends or bond coupon payments—even when stock prices stagnate or fall. Global tariffs may impact specific industries (e.g., manufacturing, tech) more than others. Income ETFs, especially those with diversified holdings across sectors, asset classes and geographies, help spread risk. During uncertain periods like tariff disputes or pending court rulings, high-growth stocks can be particularly volatile. Income ETFs, by contrast, generally exhibit lower volatility. Against this backdrop, below we highlight a few income ETFs. SPDR S&P 500 ETF Trust SPY is up 0.9% so far this year (as of May 29, 2025). The ETF yields 1.22% annually and charges 9 bps in fees. In comparison, the following income ETFs have either outperformed SPY or experienced minimal losses year-to-date. Amplify High Income ETF YYY – Yields 12.56% annually The underlying ISE High Income Index is comprised of 30 closed-end funds ranked highest overall by the ISE in three criteria: fund yield, discount to net asset value and liquidity. The ETF is down 1.6% so far this year. The expense ratio of the ETF is 3.56% annually. STF Tactical Growth & Income ETF TUGN – Yields 12.56% annually The ETF is a simple, rules-based approach to tactical asset allocation with monthly income. The tactical asset allocation engine of TUG is used to set the exposure to equities and fixed income while an active managed options strategy provides an additional income component. The fund charges 65 bps in fees. The fund is off 2.5% year-to-date. Global X Alternative Income ETF ALTY – Yields 8.21% annually The underlying Indxx SuperDividend Alternatives Index tracks the performance of among the highest dividend yielding securities in each category of alternative investments, as defined by the Index Sponsor. The fund charges 50 bps in fees. The fund is off 2.05% year to date. Arrow Dow Jones Global Yield ETF GYLD – Yields 11.93% annually The underlying Dow Jones Global Composite Yield Index seeks to identify the 150 highest yielding investable securities in the world within Equity, Sovereign Debt, Corporate Debt, Real estate & Global Alternatives. The fund charges 75 bps in fees. The fund is up 5.5% year to 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 SPDR S&P 500 ETF (SPY): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
23-05-2025
- Business
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U.S. Stocks Rebound Sharply in May: Can the Rally Continue?
U.S. equities have posted strong gains in May, with the S&P 500 rising more than about 15% from its lows in April. Markets have stabilized following a temporary truce in U.S.-China trade tensions, which were previously rattled by President Donald Trump's renewed push for reciprocal tariffs. Investor sentiment improved on the back of paused tariff actions, a temporary U.S.-China trade ceasefire, and moderate inflation data. Although the S&P 500 remains about 3% below its all-time highs, momentum has turned positive across broader indices. Federal Reserve Governor Christopher Waller indicated that interest rate cuts could be considered if the Trump administration keeps its tariff policies relatively restrained. Speaking to Fox Business, Waller suggested monetary policy may turn more accommodative should trade tensions ease further. On the macroeconomic front, data released this week showed strength. U.S. business activity accelerated in May, signaling growing demand and business confidence. Initial jobless claims declined, pointing to continued strength in the labor market. These indicators support the view that the U.S. economy remains on stable footing despite trade-related headwinds. According to LSEG data, traders now expect at least two 25-basis-point interest rate cuts by the end of the year, suggesting strong belief that the Fed will move to counterbalance any slowdown triggered by external pressures. The House of Representatives narrowly passed a sweeping tax cut bill on May 22. A new analysis from the Congressional Budget Office (CBO) estimates that the tax provisions would add $3.8 trillion to the federal deficit over the next decade. This may boost U.S. treasury yields and weigh on the equity market. Despite headline gains, market breadth remained weak. The S&P 500 registered one new 52-week high and nine new lows on May 22, while the Nasdaq Composite saw 34 new highs and 83 new lows. While tariff fears were blamed for the April selloff, the market was likely due for a pullback after a strong run late last year and into early 2025. Either way, it presented a buying opportunity, just like most pullbacks and corrections do. Since 1950, whenever the S&P 500 fell 10% in just two days (like what happened in April 2025), it has offered at least 18% returns over the next 12 months, with the highest being 59% (in 2020). On average, the S&P 500 has bounced back by 32.6% within the next 12 months, following all double-digit, two-day declines. We expect history to repeat itself this year (read: What's Next for S&P 500 ETFs? History and Valuation Offer Clues). SPDR S&P 500 ETF Trust SPY fell 1.4% over the past five days, while SPDR Portfolio S&P 500 Value ETF SPYV and SPDR Portfolio S&P 500 Growth ETF SPYG dropped 1.5% and 1.4%, respectively, on May 22. Meanwhile, Invesco S&P 500 Quality ETF SPHQ retreated 0.8% on the day. Amid the current uncertain investing backdrop, it's wise to stay focused on high-quality ETFs like SPHQ for short-term investment purposes, especially as uncertainty around the tax bill and trade developments persists. However, regardless of threats emerging right now, history indicates that staying optimistic about the S&P 500 with a long-term view pays off 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 SPDR S&P 500 ETF (SPY): ETF Research Reports Invesco S&P 500 Quality ETF (SPHQ): ETF Research Reports SPDR Portfolio S&P 500 Growth ETF (SPYG): ETF Research Reports SPDR Portfolio S&P 500 Value ETF (SPYV): 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
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19-05-2025
- Business
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Moody's Downgrades U.S. Rating: What's Next for S&P 500 ETFs?
Moody's Investors downgraded the United States' sovereign credit rating by one notch from Aaa to Aa1, citing escalating deficits and the increasing burden of refinancing debt amid elevated interest rates. The downgrade reflects concerns around the ballooning U.S. debt. As such, it could dampen the appetite for U.S. assets, including equities, and raise yields at a time when the economy is already under pressure from President Donald Trump's unfolding tariff move came after last week's bullish run for U.S. stocks buoyed a temporary U.S.-China trade truce. The S&P 500 erased all its losses and turned green for 2025 by rallying more than 5%, while the Dow Jones climbed by more than 3%. The tech-heavy Nasdaq Index surged more than 7% last week (read: S&P 500 Makes the Fastest Recovery Since 1982: 5 Best ETFs). The three ultra-popular ETFs tracking the index — Vanguard S&P 500 ETF VOO, SPDR S&P 500 ETF Trust SPY and iShares Core S&P 500 ETF IVV — are up about 1.7% each so far this year. Will the strong trend continue? Let's delve deeper: Moody's downgraded the rating, citing rising national debt, increasing interest payments and political polarization. The agency noted that the fiscal proposals currently under discussion are unlikely to deliver a sustained, multi-year reduction in deficits. The agency projects that the federal debt burden will rise to approximately 134% of GDP by 2035, up from an estimated 98% in interest payments on the national debt are expected to consume a larger share of federal revenues, with projections indicating a rise to 10% by 2025. Moody's also highlighted the U.S.'s complex budget and debt limit processes, which have become increasingly mired in political partisanship, eroding confidence in fiscal managementMoody's had maintained the United States' top-tier 'Aaa' rating since 1919 and was the last of the three major credit rating agencies to downgrade it. Standard & Poor's and Fitch downgraded the United States in 2011 and 2023, the downgrade, U.S. stock-index futures, including the S&P 500, declined by around 1% or more. The U.S. dollar weakened, and the yield on the 10-year Treasury note rose to 4.52%, indicating investor anxiety. The United States has agreed to temporarily slash tariffs on Chinese goods from 145% to 30%, while China will lower its retaliatory duties on U.S. goods from 125% to 10%. The temporary reduction in rates will run for 90 days. The deal has infused a strong air of optimism into the technology sector, which is the largest beneficiary (read: 5 Technology Stocks Powering S&P 500 ETF). Wall Street strategists have turned increasingly bullish on the S&P 500 outlook for the year after the U.S.-China deal. Goldman Sachs raised its year-end target for the S&P 500 to 6,100 from 5,900. Yardeni Research also lifted its forecast to 6,500 from 6,000, implying an additional 11% gain from current levels. Both firms cited easing concerns over a major economic slowdown as a key driver behind their optimism. April inflation and jobs data added another reason to cheer. U.S. inflation in April cooled to the lowest level since February 2021. The Consumer Price Index, which tracks a variety of costs throughout the economy, rose 2.3% year over year in April, down slightly from 2.4% in March. The softer-than-expected data bolstered the case for the easing by the Federal April jobs data showed that the U.S. labor market remained resilient amid the tariff chaos. The economy added better-than-expected 177,000 jobs while the unemployment rate held steady at 4.2%, providing further assurance about the economy's health (read: Growth ETFs Outperform Amid Historic Market Comeback). U.S. consumer sentiment fell for the fifth consecutive month in May, reflecting Americans' increasing worry that President Donald Trump's trade war will worsen inflation. The preliminary reading of the University of Michigan's consumer sentiment index declined 2.7%, on a monthly basis, to 50.8, the lowest level since June 2022. Since January, sentiment has tumbled nearly 30%. While the downgrade could trigger a pullback or consolidation following recent strong gains, deal optimism and an improving economy still call for further upside. However, volatility may persist given uncertainties around trade policies. 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 SPDR S&P 500 ETF (SPY): ETF Research Reports Vanguard S&P 500 ETF (VOO): ETF Research Reports iShares Core S&P 500 ETF (IVV): 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
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13-05-2025
- Business
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Tap Mag-7 ETFs on Temporary US-China Trade Truce
The group of tech giants — Apple AAPL, Amazon AMZN, Microsoft MSFT, NVIDIA NVDA, Tesla TSLA, Alphabet GOOGL and Meta META — known as the "Magnificent Seven" has been battered by the tariff turmoil. Roundhill Magnificent Seven ETF MAGS has lost 6.4% so far this year (as of May 12, 2025) against a loss of 0.3% seen in the SPDR S&P 500 ETF Trust SPY. The latest U.S.-China temporary trade truce came as a surprising relief to the space. Responding to the trade deal, MAGS ETF surged 5.8% on May 12. The ETF has, in fact, surged 12.9% over the past month. The recent rebound follows a rough period for Big Tech after President Donald Trump announced a "reciprocal tariff" plan on April 2, which wiped out $2 trillion in cumulative market cap from the Magnificent Seven. Amazon and Meta Platforms spearheaded a significant rally among the "Magnificent Seven" tech stocks on May 12 afternoon, following the announcement of a temporary trade truce between the United States and China. Amazon surged 8.1% and Meta climbed 7.9% on May 12. Tesla gained 6.8%, pushing its market cap above $1 trillion. Apple rose 6.3%. NVIDIA jumped 5.4%. Google shares increased 3.4%. Microsoft added 2.4%. The United States agreed to temporarily lower tariffs on Chinese imports. The United States cut tariffs on Chinese goods from 145% to 30%, while China lowered American levies from 125% to 10%. These reductions will last 90 days, following two days of high-stakes talks between the two nations. The new tariffs on small packages sent from China worth up to $800 have been cut from 120% to 54%, according to a White House statement. The trade development is highly optimistic for tech stocks, particularly due to the easing of supply-chain concerns. Along with Apple, Tesla is also heavily dependent on Chinese parts and battery suppliers. No wonder, both shares surged. Moreover, Tesla is expected to debut its self-driving Taxi in June. Amazon: 30% of product value on its platform comes from China; Chinese advertisers made up 14% of ad revenues in 2024, per Raymond James, as quoted on Yahoo Finance. Meta: Chinese advertisers contributed roughly 11% of total ad spending, Raymon James noted. Google: Chinese advertisers accounted for about 6% of ad revenues, Raymon James indicated. Apple: 90% of iPhones are manufactured in China, representing 17% of 2024 revenues. NVIDIA: Chinese clients make up between 20% and 40% of the company's end customer base, according to DA Davidson analyst Gil Luria, as quoted on Yahoo Finance. Despite the temporary truce, the United States has imposed export bans on NVIDIA's H20 AI chips to China, which has pressured NVDA shares. Hence, many are of the view that the phase of group-wide Mag-7 rallies appears to be over, replaced by a more scrutinized stock selection. However, no one still underrates the opportunities in the Mag-7 group. And if you want to go for group-wide picks, you have options like MAGS, Vanguard Mega Cap Growth ETF MGK, Invesco S&P 500 Top 50 ETF XLG and iShares S&P 100 ETF OEF to play on. Meta-heavy ETFs likeFidelity MSCI Communication Services Index ETF FCOM can be played for specific stock preference. Consumer Discretionary Select Sector SPDR Fund XLY invests about 35% of its basket in Amazon and Tesla. While tensions are still present around chip restrictions (H20/NVDA), the stock cannot be ignored due to continued chip demand. So, keep a close look at the NVDA-heavy Strive U.S. Semiconductor ETF SHOC. And if you like the resilience in MSFT shares and the recent rebound in the Apple stock, you can tap iShares Global Tech ETF IXN. The ETF also invests about 35% of its portfolio in the 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 Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Consumer Discretionary Select Sector SPDR ETF (XLY): ETF Research Reports Fidelity MSCI Communication Services Index ETF (FCOM): ETF Research Reports Invesco S&P 500 Top 50 ETF (XLG): ETF Research Reports iShares Global Tech ETF (IXN): ETF Research Reports Vanguard Mega Cap Growth ETF (MGK): ETF Research Reports iShares S&P 100 ETF (OEF): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report Strive U.S. Semiconductor ETF (SHOC): 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
