The Federal Reserve is set to announce its decision on interest rates on Wednesday. Markets are anticipating a rate cut, with speculation focusing on the magnitude: 25 or 50 basis points. Investors have been actively adjusting their portfolios, favoring ETFs that could benefit from a lower interest rate environment. This article explores the potential impact of the rate cut and highlights the top 10 ETFs investors bought last week.
Gold prices are on the rise, driven by anticipation of aggressive interest rate cuts by the Federal Reserve and its safe-haven appeal amid global economic uncertainty. Gold ETFs are experiencing record inflows as investors seek shelter from market volatility, while the weakening dollar further enhances the precious metal’s allure.
Bitcoin and Ethereum spot ETFs witnessed significant inflows on September 10th, with Bitcoin ETFs attracting $117 million and Ethereum ETFs $11.437 million. This surge coincides with the cryptocurrency market’s reaction to recent political developments and evolving economic indicators. The inflows suggest a potential shift in investor sentiment towards cryptocurrencies.
Investors poured a record-breaking $75 billion into U.S. exchange-traded funds (ETFs) in August, driven by a combination of market dips, anticipated rate cuts, and growing demand for bond and small-cap ETFs. This surge pushes 2024’s total ETF inflows towards the all-time record set in 2021, exceeding $600 billion year-to-date.
With the Federal Reserve potentially lowering interest rates, small-cap stocks could be primed for a comeback. Lower borrowing costs would benefit these companies, which often rely heavily on debt to fuel growth. Experts like Ed Egilinsky, Managing Director at Direxion, believe this presents opportunities for investors, particularly through leveraged ETFs and ETFs tracking the Russell 2000 index.
Bitcoin and Ethereum spot ETFs experienced significant fund outflows on August 29, reflecting ongoing uncertainty within the cryptocurrency markets. While Bitcoin ETFs saw a net outflow of $71.73 million, Ethereum ETFs faced a net outflow of $1.77 million. This activity coincides with broader struggles in the cryptocurrency market, with Bitcoin and Ethereum both experiencing price declines over the past month.
Bitcoin has rebounded to $61,000, marking a 3.4% surge in the last 24 hours. Analysts are watching for potential impacts of the upcoming US presidential election on cryptocurrency prices, and Ethereum is also experiencing gains, up 3.9% at $2,580. Ethereum spot ETFs saw positive inflows, while Bitcoin spot ETFs experienced outflows. Experts are monitoring key resistance levels as Bitcoin approaches its all-time high.
Nvidia’s strong Q2 earnings, driven by data center revenue, have triggered mixed reactions from ETFs tracking the company. While some ETFs saw gains, others experienced declines, reflecting the complexities of the semiconductor market and the company’s performance.
Nvidia is set to report earnings on Wednesday, and the AI giant’s results are expected to have a significant impact on the broader market, particularly the semiconductor and technology sectors. Wall Street anticipates strong revenue and earnings growth, driven by robust demand for Nvidia’s GPUs and networking products. Investors seeking exposure to Nvidia’s potential earnings-driven rally can consider ETFs with significant Nvidia holdings.
Bitcoin and Ethereum spot ETFs saw significant outflows on August 27, with Bitcoin ETFs experiencing a daily outflow of $127.05 million and Ethereum ETFs seeing a more modest outflow of $3.4452 million. This trend continues a nine-day streak of withdrawals, occurring against a backdrop of market anticipation for potential Federal Reserve rate cuts. Despite the outflows, Bitcoin spot ETFs maintain a strong cumulative net inflow of $17.95 billion.
