Wall Street registered strong gains on May 17 as investors scooped up beaten-down shares in the technology and other sectors. The technology sector has been through a rough patch in recent weeks as evident from an 8.2% decline in the biggest sector ETF (XLK – Free Report) . Rise in interest rates amid faster Fed rate hikes has been the dampener.
Among the tech space, cryptocurrency recorded a bloodbath. Over the last week, numerous cryptocurrencies have seen prices nosedive. As of last week, 40% of bitcoin investors were hit hard by the crypto plunge, according to data from crypto intelligence firm Glassnode, quoted on grow.com.
Now as the tech stocks rebounded on May 17, crypto and blockchain-based stocks jumped the most. Some upbeat economic news instigated the bounce in the stock market. Among them, upbeat U.S. retail sales for April and cues of economic reopening in China acted as key tailwinds.
Retail sales in the United States increased 0.9% sequentially in April of 2022, after an upwardly revised 1.4% surge in March and matching market forecasts. The reading showed American consumers continued to spend despite red-hot inflation. The reopening of some stores in Shanghai this week after a stringent Covid-19 lockdown as part of China’s zero-Covid policy, also offered some relief to Wall Street.
Tech was the best-performing sector of the S&P 500 on May 17. Chip maker Nvidia and electric-car maker Tesla, Apple, Microsoft, PayPal Holdings and Zoom Video Communications all gained in the 2% to 5% range. In fact, most growth sectors exhibited an uptick on May 17.
Against this backdrop, below we highlight a few ETFs that drove the tech rally yesterday.
ETFs in Focus
The underlying Bitwise Crypto Innovators 30 Index measures the performance of companies involved in servicing the cryptocurrency markets, including crypto mining firms, crypto mining equipment suppliers, crypto financial services companies, or other financial institutions servicing primarily crypto-related clientele. It charges 85 bps in fees.
VanEck Digital Transformation ETF (DAPP) – Up 7.1%
The underlying MVIS Global Digital Assets Equity Index is a rules based, modified capitalization weighted, float adjusted index intended to give investors a means of tracking the overall performance of the global digital asset segment. It charges 50 bps in fees.
The underlying BITA NFT and Blockchain Select Index is rules-based and consists of the common stock of companies that earn a majority of their revenue from activities in the blockchain and cryptocurrency ecosystems or with exposure to the NFT ecosystem. It charges 65 bps in fees.
The underlying NYSE FactSet Global Blockchain Technologies Index composes of U.S. and non-U.S. companies that are involved in the development, innovation, and utilization of blockchain and crypto technologies. The fund charges 47 bps in fees.