Dollar Surges As Doubts Over Aggressive Rate Cuts Grow, Wall Street Climbs On Consumer Strength: 7 ETFs React To Fed's Inflation Data
Portfolio Pulse from Piero Cingari
The U.S. dollar strengthened as the Federal Reserve's inflation data suggested a slower pace for rate cuts. Wall Street reacted positively to strong consumer data, with several ETFs showing gains. The Invesco DB USD Index Bullish Fund ETF (UUP) rose, while the SPDR Gold Trust (GLD) fell. Small-cap stocks, tech stocks, and semiconductors saw gains.

August 30, 2024 | 1:58 pm
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POSITIVE IMPACT
The iShares Russell 2000 ETF (IWM) rose 0.4% as small-cap stocks benefited from strong consumer data.
Small-cap stocks, tracked by IWM, gained due to positive consumer data, indicating economic strength, which is favorable for smaller companies.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 60
POSITIVE IMPACT
The Roundhill Magnificent Seven ETF (MAGS) rose 0.4% as the 'Magnificent Seven' stocks gained on positive market sentiment.
The 'Magnificent Seven' stocks, tracked by MAGS, gained due to positive market sentiment driven by strong economic data.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 60
POSITIVE IMPACT
The Invesco QQQ Trust, Series 1 (QQQ) rallied 0.9% as tech stocks benefited from strong economic data.
Tech stocks, tracked by QQQ, rallied due to strong economic data, which supports growth in the tech sector.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
The iShares Semiconductor ETF (SOXX) surged 2.2% buoyed by positive earnings reports from MongoDB and Marvell Technology.
Positive earnings reports from MongoDB and Marvell Technology boosted semiconductor stocks, leading to a significant rise in the SOXX ETF.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The Invesco DB USD Index Bullish Fund ETF (UUP) gained 0.2% as the U.S. dollar strengthened following the Fed's inflation data, which suggested a slower pace for rate cuts.
The UUP ETF tracks the U.S. dollar, which strengthened due to the Fed's inflation data indicating a slower pace for rate cuts. This directly impacts the ETF positively.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The Technology Select Sector SPDR Fund (XLK) climbed 0.8% as the tech sector outperformed on strong economic data.
The tech sector, tracked by XLK, outperformed due to strong economic data, indicating robust growth potential.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
The SPDR Gold Trust (GLD) fell 0.2% as the stronger U.S. dollar put pressure on gold prices.
Gold prices typically move inversely to the U.S. dollar. As the dollar strengthened, gold prices fell, negatively impacting the GLD ETF.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70