Hot On The Market: 5 ETFs In The Spotlight As Key Jobs Data Unfolds This Week
Portfolio Pulse from Piero Cingari
The July labor market report is expected to influence future Federal Reserve rate decisions and could impact the volatility of five ETFs: iShares 20+ Year Treasury Bond ETF (TLT), Invesco DB USD Bullish Fund ETF (UUP), Invesco QQQ Trust (QQQ), iShares Russell 2000 ETF (IWM), and SPDR Gold Trust (GLD). Stronger-than-expected job growth and rising wages may lead investors to anticipate potential rate hikes, while lower-than-expected data could solidify expectations for a pause in rate increases.
August 04, 2023 | 10:26 am
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POSITIVE IMPACT
A stronger job market could benefit the IWM ETF as it indicates a healthy economy, which is good for small-cap stocks.
The IWM ETF is influenced by the health of the job market, which impacts small-cap stocks. A stronger job market indicates a healthy economy, which could benefit the ETF.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
A healthy job market and accelerating inflation, which usually supports the dollar, could increase demand for the UUP ETF.
The UUP ETF is tied to the value of the U.S. dollar, which is supported by a healthy job market and accelerating inflation. If these conditions are met, it could increase demand for the ETF.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
The GLD ETF could be impacted by the job market report, as gold's value is susceptible to Fed interest rate rises.
The GLD ETF is influenced by the job market report, as gold's value is susceptible to changes in Fed interest rates. Depending on the outcome of the report, this could either positively or negatively impact the ETF.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
Changes in the labor market and inflation could impact the QQQ ETF, as tech stocks are sensitive to these factors.
The QQQ ETF is influenced by changes in the labor market and inflation, which impact tech stocks. Depending on the outcome of the job report, this could either positively or negatively impact the ETF.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
A stronger-than-expected July job report could potentially exert a negative impact on the TLT ETF as bond prices may decrease with raised Fed hike expectations.
The TLT ETF is directly influenced by interest rate expectations. If the job report is stronger than expected, it could lead to increased expectations for a Fed rate hike, which would decrease bond prices.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100