SMH, AI ETFs Rise on Nvidia Blackwell Hope
Tech investors gain optimism on fading Taiwan fears and rising Nvidia expectations.
Tech investors gain optimism on fading Taiwan fears and rising Nvidia expectations.
Going into the Q2 earnings season, earnings releases from the sector giants will determine the movement of these funds.
The S&P 500 has been around since 1957. The index offers broad exposure to various sectors. The index lists 500 publicly traded corporations that must all fulfill a few requirements. Each company must be profitable over the trailing 12 months and have reported a profit in the most recent quarter. The S&P 500 also imposes market cap minimum requirements and other parameters. The index isn’t open to every company, and these guardrails have resulted in impressive long-term returns. The S&P 500 has
Just as many popular tech stocks are showing some signs of weakness, financial stocks are quietly gaining momentum and look well-positioned to enjoy further gains based on their inexpensive valuations. While it certainly doesn’t receive the same fanfare as the Tech sector, the Financial sector has been on fire. The Financial Select Sector SPDR Fund (XLF) recently hit an all-time high and is up a healthy 4.4% over the past month. Simultaneously, its Tech sector counterpart, the Technology Select
Finding the best ETFs to buy to beat the Nasdaq in 2024 can put you on the path to success. Especially with the technology sector’s valuations becoming out of whack. Over the past 9 months, companies from the Nasdaq have surged to record levels. The long term growth prospects of artificial intelligence and lower interest rates going into 2025 made investors extremely optimistic. However, with the Shiller PE Index currently trading at ~36, valuations look unsustainable at current levels. As the m
Taiwan Semiconductor beat estimates for the top and the bottom lines on surging demand for advanced chips used in AI applications. The chipmaker lifted revenue growth projects for the full year, reflecting its confidence in the longevity of the global AI spending boom.
The economic week will be eventful also with the release of a key housing indicator.
As the 2024 presidential election nears, BlackRock Head of iShares Investment Strategy Americas Kristy Akullian joins Wealth! to discuss potential volatility and the outlook for ETFs. "We hear a lot from investors that they're worried about the volatility that comes with elections. And they're worried about election results. I think the number one message that we have for investors is just the importance of staying invested. We just like to remind people that irrespective of who holds power, equity markets do what they do. And that's typically go up," Akullian says. She explains that there are areas of overlap for both parties, and points to iShares US Tech Independence Focused ETF (IETC) as an investment opportunity poised to benefit from either a Trump or Biden administration. She expects that active ETF assets under management will grow to $4 trillion by 2030, adding, "I think there's some other really interesting cohorts of funds that are things like outcome-based investing. So some of them are yield-enhancing using option strategies and overlays and things to either buffer against a downside or actually increase income in some of those as well. So I think there's a lot of flavors of active management. And that's part of the reason why we see such growth opportunity is because there's kind of something for everybody." For more expert insight and the latest market action, click here to watch this full episode of Wealth! This post was written by Melanie Riehl
The Healthcare sector offers plenty of bargains, with a surprising number of the prominent healthcare stocks held by the Health Care Select Sector SPDR (XLV) trading at low prices. Against a market backdrop where Technology sector stocks have racked up huge gains over the past year-plus, a sector like Healthcare looks like an attractive place for investors to allocate some of their profits if the market rotates and the rally expands beyond big tech. I’m bullish on XLV based on the inexpensive va
On today's episode of Wealth! host Brad Smith breaks down key personal finance stories from the CrowdStrike (CRWD) outage to what home buyers need to know before entering the housing market. A recent CrowdStrike update caused a global outage that impacted Microsoft Windows (MSFT) systems across multiple industries. The incident has affected or even halted operations in banking, airline operators, and even emergency services around the world. Yahoo Finance tech editor Dan Howley provides a detailed analysis of the incident, shedding light on the concerns surrounding the small group of companies that are responsible for operating internet systems globally. Netflix (NFLX) reported its second-quarter earnings results and announced plans to discontinue its cheapest ad-free plan in the US and France. Citi managing director Jason Bazinet notes that Netflix's restructuring efforts are "complicated" as the company strives for profitability. However, he highlights that the ad-tier business has been "consistent with our expectations," with growth in sales, although it has been under-monetized. Meanwhile, the tech sector (XLK) is continuing to see a downturn as some investors on Wall Street are rotating out into other sectors and small-cap stocks (^RUT). EquitySet CEO Tony Zipparro comments on which areas of the market will be most sensitive to rate cuts: "That's capital-intensive industries, right? Where you've got not the greatest— where they're trying to get the profitability, right? You've got a lot of debt on the books. You really have to be cautious." Many would-be homebuyers are choosing to sit on the sidelines and instead rent for longer as housing costs remain elevated. Yahoo Finance contributor Ross Mac joins Wealth! to break down some scenarios where either buying or renting could make the most sense for you. Chase Home Lending Head of Consumer Originations Sean Grzebin believes the housing market is getting some relief, explaining, "Now that rates have been high for some period of time, we're starting to see a little easing. I think customers are becoming more comfortable listing, and we're actually seeing inventories grow for the first time in several years." 70% of employees are bracing for potential layoffs, whether by saving money or applying to new jobs, according to a survey from MarketWatch Guides. MarketWatch Guides data journalist Matt Brannon lays out one of the biggest finds in the study: "One of the big ones is that age gap. So we found that Baby Boomers feel more secure in their jobs. It makes sense. They've worked for decades building up their seniority. Whereas Gen Z workers, 88% are taking steps to prevent, a job loss trying to preempt it in some sort of way, layoff anxiety is a term that we asked about to find out just how concerned people are and a majority of Gen Z workers and nearly half of Millennials are anxious about being laid off. " This post was written by Melanie Riehl