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Yahoo
2 days ago
- Business
- Yahoo
S&P 500 ETFs Log Best May in 30+ Yrs on AI, Large-Cap Safety
The S&P 500 just posted its strongest May performance in more than three decades, largely driven by a surge in the "Magnificent Seven" tech stocks: Apple AAPL, Alphabet (GOOGL, GOOG), Microsoft MSFT, Amazon AMZN, Meta META, Tesla TSLA, and NVIDIA NVDA (read: 4 ETF Areas Up At Least 25% in May). The SPDR S&P 500 ETF Trust SPY gained 5.2% over the past month (as of Jun 2, 2025) while the Big-Tech heavy Nasdaq-100 ETF Invesco QQQ Trust, Series 1 QQQ advanced 7.7%. While easing trade tensions was the key behind the stock outperformance, Big Tech benefited the most from easing trade tensions. Following the initial tariff-induced downturn, signs of trade de-escalation began to emerge. The United States temporarily reduced tariffs on Chinese goods from 145% to 30%, while China responded by lowering its retaliatory duties on U.S. imports from 125% to 10%. This 90-day reduction period has helped ease investor concerns. Additionally, President Trump postponed a 50% tariff hike on EU goods, delaying implementation from June 1 to July 9. This move accelerated trade negotiations with European partners. The seven mega-cap companies accounted for 62% of the S&P 500's 6.2% gain in May. NVIDIA and Tesla led the charge with monthly gains exceeding 20%. Six out of the seven stocks outperformed the broader index, with Apple being the sole underperformer. Nicholas Colas, co-founder of DataTrek Research, noted that the resurgence of Big Tech is a sign the market has regained its confidence, as quoted on Yahoo Finance. A major reason behind the rally is strong earnings growth from Big Tech. In Q1, the Magnificent Seven posted a combined 27.7% earnings increase year-over-year, compared to 9.4% growth among the other 493 S&P 500 companies, according to FactSet's senior earnings analyst John Butters. Additionally, these companies outpaced analyst expectations, beating estimates by 11.7% on average—well above the 4.6% beat from the rest of the index, as quoted on Yahoo Finance. Overall, total Q1 earnings for the 477 S&P 500 members that have reported results are up +11.4% from the same period last year on +4.4% higher revenues, with 74.2% beating EPS estimates and 62.9% beating revenue estimates, per Earnings Trend issued on May 28, 2025. Citi US equity strategist Drew Pettit highlighted that these earnings surprises explain the group's recent outperformance, as quoted on Yahoo Finance. Over the past month, the Roundhill Magnificent Seven ETF MAGS rose approximately 11%, nearly double the S&P 500's return. After all, it was Big Tech that triggered the latest market downturn earlier this year, so it's not surprising to see these stocks bouncing back the most. Another factor boosting Big Tech is investor preference for large-cap stocks amid rising bond yields. With the 30-year Treasury yield nearing highs not seen since the financial crisis, large-caps have become a safer bet. 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 Alphabet Inc. (GOOG) : Free Stock Analysis 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 Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
27-05-2025
- Business
- Yahoo
EU-US Trade Deal Hopes to Boost These ETFs
After logging a weekly decline, Wall Street is set to rebound on the likelihood of an EU-US trade deal following the tariff delays. SPDR S&P 500 ETF Trust SPY, Invesco QQQ QQQ, Technology Select Sector SPDR Fund XLK, Industrial Select Sector SPDR Fund XLI and Vanguard FTSE Europe ETF VGK are set for big moves. The European Union agreed to accelerate tariff negotiations with the United States, easing fears of a trans-Atlantic trade war. The decision came after President Trump announced that the United States would postpone the implementation of a 50% tariff increase on all EU products, from June 1 to July 9, to allow time for further a social media post on Friday, Trump threatened to impose a 50% tariff on EU goods, criticizing the 27-member bloc as 'very difficult to deal with' on trade and claiming that negotiations were 'going nowhere.' The tariffs were set to take effect on June 1. Additionally, Trump warned that all smartphones made outside the country, including Apple's AAPL iPhone and Samsung devices, could soon face a 25% import tax if not manufactured in the United States (read: Volatility ETFs Spike on Renewed Trump Tariff Threats). SPDR S&P 500 ETF Trust (SPY)SPDR S&P 500 ETF Trust holds 504 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, healthcare and consumer discretionary accounting for a double-digit allocation each. SPDR S&P 500 ETF Trust has an AUM of $608 billion and charges 9 bps in fees per year. It trades in an average daily volume of 65 million shares and has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook (see: all the Large Cap Blend ETFs here).Invesco QQQ Trust (QQQ)Invesco QQQ Trust provides exposure to the 101 largest domestic and international non-financial companies listed on the Nasdaq by tracking the Nasdaq 100 Index. It is one of the largest and most popular ETFs in the large-cap space, with an AUM of $330.5 billion and an average daily volume of 44.3 million shares. QQQ charges investors 20 bps in annual fees and has a Zacks ETF Rank #3 (Hold) with a Medium risk Sector SPDR Technology ETF (XLK)Select Sector SPDR Technology ETF is the most popular and liquid ETF in the technology space, with AUM of $72.4 billion and an average daily volume of 5 million shares. It offers broad exposure to the technology sector and follows the Technology Select Sector Index. Select Sector SPDR Technology ETF holds about 69 securities in its basket and charges 8 bps in fees per year from investors. It has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook (read: 3 ETF Strategies to Follow on Temporary U.S.-China Trade Deal).Industrial Select Sector SPDR (XLI)Industrial Select Sector SPDR targets the broad industrial sector and follows the Industrial Select Sector Index. XLI holds 79 stocks in its basket and is well spread out across sectors, with aerospace & defense, machinery, and ground transportation making up for a double-digit share each. Industrial Select Sector SPDR is the most popular ETF with AUM of $21 billion and an average daily volume of around 7 million shares. It charges 8 bps in fees per year and has a Zacks ETF Rank #1 with a Medium risk FTSE Europe ETF (VGK)Vanguard FTSE Europe ETF offers exposure to companies located in the major markets of Europe by tracking the FTSE Developed Europe All Cap Index. It holds a broad basket of 1241 stocks with key holdings in financials, industrials, health care, and consumer discretionary sectors. Vanguard FTSE Europe ETF has AUM of $25.1 billion and trades in an average daily volume of 3.5 million shares. It charges 6 bps in annual fees and has a Zacks ETF Rank #1 with a Medium risk outlook. While the delay in tariff implementation has provided a temporary reprieve, investors should brace for more volatility ahead as the potential for a trade war has not completely dissipated. 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 Apple Inc. (AAPL) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports Technology Select Sector SPDR ETF (XLK): ETF Research Reports Industrial Select Sector SPDR ETF (XLI): ETF Research Reports Vanguard FTSE Europe ETF (VGK): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
16-05-2025
- Business
- Yahoo
The retail buy-the-dip move paid off. What that crowd of investors is doing now, according to JPMorgan.
A pullback is shaping up, as investors hunt fresh rationale to keep buying and excitement fades over the U.S.-China tariff pause. Retail will be in focus with data and Walmart earnings ahead. Timing stock market ups-and-downs is a tricky feat, but congratulations are in order for retail investors, who appear to have done well in recent weeks by tearing a page out of Warren Buffett's 'be-greedy-when-others-are-fearful' playbook. 'My wife says no': I'm 57 and ready to retire next year on $7,500 a month. Who's right? My wife and I paid off my stepdaughter's $415K mortgage in exchange for her house, but it's now worth $310K. Should we sue? My second wife says her 2 kids should inherit our estate, but I also have 2 kids. Is that fair? My husband and I spend more money on our daughter and her family than on my single son. Do we compensate him? 'We're not wealthy': My niece is marrying out of state and she has a honeymoon fund. Is that cheeky? 'The buy-the-dip strategy in early April has clearly paid off,' said a team of JPMorgan strategists led by Emma Wu. 'We estimate retail investors' portfolio is up 15.1% since April 8, closely aligning with the market performance of +15.8%.' Investors bought $50 billion in stocks as the market bounced from the S&P 500's SPX 52-week low of 4982.77 reached April 8, said the JPMorgan team. 'Notably, their buy-the-dip strategy and gradual buying during the subsequent rally (with a reduced pace) has historically been profitable,' said the strategists. That was the situation in 2020: retail buyers made some 31% from the March low to the June high, basically doubling the market performance, the JPMorgan said. Retail investors were the main driver behind the market rally in the last week of April, with institutional activity subdued and low positioning by momentum-trading commodity trading advisers. Their market share reached 36% in late April, versus a year-to-date average of 21% and long-term share of 12%. As for what that savvy bunch of traders has been up to lately, JPMorgan says a shift may be under way. Wu and her colleagues noted that Monday marked the first time they've seen profit-taking flow — $555 million — since the market recovery, with $2 billion profits taken on options and the 'largest outflow in history' for Nvidia NVDA, to the tune of $894 million. After Tuesday's softer-than-forecast inflation numbers, retail investors came back in, though at a slower pace. Inflows in the latest week were entirely driven by exchange-traded funds, chiefly broad market ones such as the SPDR S&P 500 ETF Trust SPY, said Wu and colleagues. They also saw a sector rotation: value to growth, small cap to large cap, healthcare to industrials, gold and silver to base metals, while demand for international equities remained a theme. Over the past week, investors took profits on Nvidia, Palantir PLTR and Tesla TSLA, with continued heavily selling of Apple AAPL since last July, though buying for other Magnificent 7 group names. U.S. stocks SPX DJIA COMP have opened lower, with Treasury yields BX:TMUBMUSD30Y BX:TMUBMUSD10Y dropping. Oil prices CL00 NQ00 are down nearly 3% on rising bets of a U.S.-Iran nuclear deal. . Key asset performance Last 5d 1m YTD 1y S&P 500 5892.58 4.64% 11.69% 0.19% 11.01% Nasdaq Composite 19,146.81 7.94% 17.41% -0.85% 14.36% 10-year Treasury 4.536 15.50 20.60 -4.00 15.50 Gold 3131.9 -7.14% -6.72% 18.66% 30.94% Oil 61.5 6.13% -0.71% -14.43% -22.02% Data: MarketWatch. Treasury yields change expressed in basis points Fed Chairman Jerome Powell has warned that inflation could be more volatile in future. He spoke just ahead of a big data drop that showed producer prices falling a bigger-than-forecast 0.5% and the most since the pandemic, though that won't last. April retail sales rose a scant 0.1% as expected, after a revised up 1.7% gain in May, while the latest weekly jobless claims held steady at 229,000. Due later, industrial production is scheduled for 9:15 a.m., followed by business inventories and a home builders confidence index at 10 a.m. Consumer bellwether Walmart WMT reported forecast-beating results and maintained its full-year outlook, but warned tariffs are pressuring prices. Shares have turned lower. China e-commerce group Alibaba BABA reported weaker-than-forecast results and shares are down. Deere DE reported an earnings beat and share are up, but it also trimmed guidance. UnitedHealth shares UNH are off 6% after a report of a DOJ probe. Foot Locker FL shares are up 80% after Dick's Sporting Goods DKS said it will buy the sneaker chain in a $2.4 billion deal, confirming a Wednesday report. Coinbase stock COIN is slipping after suffering a cyber attack after overseas workers were bribed to steal customer data. Cisco Systems CSCO posted an earnings beat on growing AI demand for networking products. CoreWeave CRWV is falling on disappointing guidance. At a news conference, President Donald Trump gave the kiss of death to the idea of a U.S. sovereign wealth fund. He also said India offered to drop tariffs on the U.S. to zero. Bags of cash from drug cartels flood teller windows at U.S. banks. Microsoft layoffs hit coders hardest with AI costs on the rise. As investors pile into private assets, this storied firm expects slowdown. Gold could be setting up for a 'spectacular fall,' as the U.S.-China tariff pause and talks planned between Russia and Ukraine take war risk out of commodity prices, said Ben Emons, founder of Fed Watch Advisors, in a Substack post. His chart shows gold and the Energy Select Sector SPDR XLE both pointing lower. 'Gold has 'crashed' before, such as in 2012-13 when the Euro crisis ended, and after 2020, resulting in a drawdown of 30 to 40 percent in each case. Secondly, there is energy, with XLE and WTI stopping short of the 50-day moving average, while the broader market remains in a risk-on momentum,' he said. These were the most active tickers on MarketWatch as of 6 a.m.: Ticker Security name NVDA Nvidia TSLA Tesla UNH UnitedHealth GME GameStop PLTR Palantir Technologies SMCI Super Micro Computer AAPL Apple AMD Advanced Micro Devices AMZN TSM Taiwan Semiconductor Manufacturing The real deal. Harvard Law School's $27.50 Magna Carta copy. Meet Buster and Geno, America's favorite pets. The Eurovision song contest won't let the European Union flag on stage. The retail buy-the-dip move paid off. What that crowd of investors is doing now, according to JPMorgan. These $5,000 bonds can help you fix a stock-heavy portfolio How Europe's best investor picks stocks including GE Aerospace and Microsoft I have $50,000 in credit-card debt after my divorce, but received $30,000 after a car wreck. Do I buy a used Lexus? 'I am scared to death that I'll run out of money': My wife and I are in our 50s and have $4.4 million. Can we retire early?
Yahoo
15-05-2025
- Business
- Yahoo
5 Technology Stocks Powering S&P 500 ETF
The S&P 500 returned to positive territory in 2025, wiping out all its losses, led by technology stocks. The stunning comeback occurred just over a month after the market had tumbled to near bear market levels on April 8, courtesy of President Trump's aggressive tariff plans. Per Bespoke Invest, the S&P 500 erased its 15% year-to-date loss in less than six weeks, marking the fastest recovery since 1982 (read: S&P 500 Makes the Fastest Recovery Since 1982: 5 Best ETFs).The 90-day U.S.-China trade truce and strong earnings, especially from tech giants, renewed market S&P 500 ETF Trust SPY, the proxy version of the S&P 500 Index, is up 0.4% this year. While many stocks powered the ETF, technology has been the clear leader in the latest leg of the rally. Here, we have highlighted five technology stocks that have led the way higher in the ETF over the past month and have a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold). These are Microchip Technology Inc. MCHP, Seagate Technology STX, Palantir Technologies Inc. PLTR, Micron Technology MU and Arista Networks Inc. solid trend is likely to continue in the months ahead as Wall Street strategists are turning increasingly bullish once again on the S&P 500 outlook for the year. 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 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. Let's take a closer look at the fundamentals of SPY. SPDR S&P 500 ETF Trust holds 503 stocks in its basket, with each accounting for no more than 6.7% 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 S&P 500 ETF Trust has an AUM of $576.1 billion and charges 9 bps in fees per year. It trades in an average daily volume of 66 million shares and has a Zacks ETF Rank #2 with a Medium risk outlook (see:all the Large Cap Blend ETFs here).Below, we have highlighted the abovementioned five best-performing stocks in the ETF. Microchip 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 soared nearly 60% in a month and saw a positive earnings estimate revision of a couple of cents for the fiscal year (ending March 2026) over the past seven days. Its earnings are expected to decline 13% this fiscal year. Microchip Technology has a Zacks Rank #3 .Seagate Technology is a leading provider of data storage technology and infrastructure solutions. The stock has jumped 44% in a month. It saw a solid earnings estimate revision of 30 cents over the past month for the fiscal year (ending June 2025) and has an estimated growth rate of 510%. Seagate Technology has a Zacks Rank #3 (read: Tech ETFs at the Forefront of the Current Market Rally).Palantir Technologies builds and deploys software platforms for the intelligence community, principally in the United States. The stock has soared about 40% in a month. It saw solid earnings estimate revision of 3 cents over the past month for this year and has an estimated growth of 43.9%. Palantir Technologies has a Zacks Rank # Technology has established itself as one of the leading worldwide providers of semiconductor memory solutions. The stock was up more than 37% over the past month. It saw positive earnings estimate revision of 8 cents for fiscal year (ending Aug 2025) over the past seven days and has an estimated earnings growth of 433.1%. MU has a Zacks Rank # Networks is engaged in providing cloud networking solutions for data centers and cloud computing environments. The stock has gained about 37% in a month. It saw solid earnings estimate revision of 9 cents over the past month for this year and has an estimated growth rate of 12.78%. Arista Networks carries a Zacks Rank #2 . You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 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 Seagate Technology Holdings PLC (STX) : Free Stock Analysis Report Micron Technology, Inc. (MU) : Free Stock Analysis Report Microchip Technology Incorporated (MCHP) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports Arista Networks, Inc. (ANET) : Free Stock Analysis Report Palantir Technologies Inc. (PLTR) : 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
Yahoo
14-05-2025
- Business
- Yahoo
S&P 500 Turns Green in 2025: ETFs to Buy on Upbeat Prospects
U.S. stocks rose on May 13, 2025, buoyed by strong gains in the tech sector after new inflation data hinted at easing price pressures in April. Optimism surrounding a temporary U.S.-China trade truce also contributed to the market's upward momentum. A combination of encouraging news drove the S&P 500 to erase its 2025 losses. The index is now up by 0.3% in the year-to-date frame. This marks a dramatic reversal from just over a month ago, when the index had fallen to the 2025 lows. The current rally represents the fastest recovery from a 15% year-to-date drop since 1982, according to Bespoke Invest, as quoted on Yahoo Finance. Against this mixed backdrop, investors may track S&P 500 ETFs like Vanguard S&P 500 ETF VOO, iShares Core S&P 500 ETF IVV, SPDR S&P 500 ETF Trust SPY and Invesco S&P 500 Momentum ETF SPMO. Tech giants led Tuesday's rally, with NVIDIA NVDA gaining nearly 6% to once again cross the $3 trillion market capitalization threshold. The company benefited from renewed optimism in the AI and semiconductor space, fueled by positive trade developments. Other members of the 'Magnificent 7' also posted gains. Coinbase COIN soared about 24% after being added to the S&P 500, becoming the first cryptocurrency exchange to join the benchmark index. The move is being tagged as a landmark moment for the crypto sector. April's Consumer Price Index (CPI) report revealed the lowest annual inflation rate since 2021, signaling no immediate price pressures despite earlier tariff volatility. However, economists noted the data is unlikely to change the Federal Reserve's cautious approach. Bond markets are now pricing in a potential 0.25% rate cut in September, a shift from the earlier expectations for a June move. President Trump took to Truth Social to pressure the Federal Reserve for rate cuts, citing cooling inflation and lower consumer prices. Investment banks are turning more optimistic on U.S. stocks following the 90-day U.S.-China tariff truce. Goldman Sachs raised its year-end S&P 500 target to 6,100 from 5,900, while Yardeni Research lifted its forecast to 6,500, up from a previous call for 6,000, as quoted on Yahoo Finance. Morgan Stanley shares the same view as that of Yardeni. The most bullish forecast comes from Wells Fargo, which predicts that the S&P 500 will close out 2025 at 7,007. Fundstrat predicts it at 6,600. Analysts cited stronger economic growth, fewer recession risks, and reduced tariff pressure as the key factors behind the upgrade. Apart from SPY, VOO and IVV, investors can play the growth part of the index with SPDR Portfolio S&P 500 Growth ETF SPYG and the value part of the index with SPDR Portfolio S&P 500 Value ETF SPYV. SPDR Portfolio S&P 500 High Dividend ETF Fund SPYD is a good bet for the dividend plays of the index. Investors can also bet on the leveraged S&P 500 ETFs like Direxion Daily S&P 500 Bull 3X Shares SPXL and ProShares Ultra S&P500 SSO, if the index manages to record some gains in 2025. However, if the S&P 500 falls by any chance, inverse ETF ProShares Short S&P500 ETF SH will rise. 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 NVIDIA Corporation (NVDA) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports Direxion Daily S&P 500 Bull 3X Shares (SPXL): ETF Research Reports ProShares Ultra S&P500 (SSO): ETF Research Reports Vanguard S&P 500 ETF (VOO): ETF Research Reports ProShares Short S&P500 (SH): ETF Research Reports SPDR Portfolio S&P 500 High Dividend ETF (SPYD): ETF Research Reports iShares Core S&P 500 ETF (IVV): 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 Invesco S&P 500 Momentum ETF (SPMO): ETF Research Reports Coinbase Global, Inc. (COIN) : 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
