Wall Street Shows Gains as Tech Stocks Rebound

Wall Street experienced a rebound on Monday, fueled by optimism that former President Trump may reconsider his tariff policies. The S&P 500 ended a four-week losing streak with a 1.8% increase, while the Dow Jones Industrial Average gained 1.4%. The Nasdaq Composite Index led the gains with a 2.3% rise, significantly driven by technology stocks.

Tesla (TSLA) shares, which had declined for nine consecutive weeks, surged nearly 12% on Monday. Other major players in the tech sector, including Meta Platforms (META) and NVIDIA (NVDA), both saw increases of more than 3%. Additionally, exchange-traded funds (ETFs) focusing on technology had strong trading volumes yesterday. Notable ETFs include Battleshares TSLA vs F ETF (ELON), YieldMax MARA Option Income Strategy ETF (MARO), Valkyrie Bitcoin Miners ETF (WGMI), Global X Blockchain ETF (BKCH), and VanEck Vectors Digital Transformation ETF (DAPP).

Reports from Bloomberg News and The Wall Street Journal indicated over the weekend that the Trump administration might suspend some proposed tariffs, which are slated for implementation in April. This news has eased inflation and recession concerns among investors.

In a statement on Monday afternoon, President Trump mentioned he may provide “a lot of countries breaks” regarding the upcoming reciprocal tariffs expected on April 2.

Encouraging Tech Growth Prospects

The topic of interest rate cuts by the Federal Reserve resurfaced as the central bank decided to maintain current interest rates, signaling the possibility of two cuts later this year. Low interest rates benefit the tech sector, making it more affordable for companies to borrow funds for growth initiatives.

The tech sector is expected to thrive on the ongoing advancements in artificial intelligence (AI), which are opening up new avenues for growth. The continuous shift to digital solutions has accelerated e-commerce, impacting various sectors from remote work to entertainment and shopping.

Furthermore, the rapid incorporation of cloud computing, big data analytics, the Internet of Things, wearables, virtual reality technologies, machine learning, digital communications, blockchain, and 5G infrastructure adds fuel to this growth. The tech sector currently holds a commendable Zacks Sector Rank within the top 32%, indicating potential for continued outperformance.

Let’s explore the specifics of the mentioned ETFs.

Battleshares TSLA vs F ETF (ELON) – Up 22.4%

Battleshares TSLA vs F ETF seeks long-term capital appreciation by enabling unique investment opportunities. This innovative ETF aims to capitalize on the competition between traditional and modern automotive industry leaders by investing in Tesla, which is deemed a new leader, alongside Ford Motor Company (F), seen as a legacy leader.

ELON utilizes a distinctive investment approach, holding a leveraged long position in Tesla, targeting 180-220% of its net assets, while establishing a leveraged short position in Ford, targeting 80-120% of its net assets. The fund will benefit if Tesla’s stock outperforms Ford’s, adjusted for leverage effects (read: Is the New Tesla vs. Ford ETF ELON a Game-Changer for Investors?).

Having launched this year, ELON has accumulated $0.8 million in assets and charges an expense ratio of 1.29%.

YieldMax MARA Option Income Strategy ETF (MARO) – Up 12.4%

YieldMax MARA Option Income Strategy ETF focuses on providing exposure to the common stock of Marathon Holdings Inc. (MARA), with capped potential investment gains. The ETF has grown its asset base to $38.6 million and charges 0.99% in annual fees.

Valkyrie Bitcoin Miners ETF (WGMI) – Up 10.2%

Valkyrie Bitcoin Miners ETF is actively managed and invests a minimum of 80% of its net assets in companies that derive a significant portion of their revenues from bitcoin mining operations or provide essential services and products, such as specialized chips and hardware. The ETF currently holds nine stocks, with primary exposure concentrated in its top three holdings.

With $127.1 million in assets and an average daily trading volume of 724,000 shares, WGMI charges 0.75% in annual fees.

Global X Blockchain ETF (BKCH) – Up 9.6%

Global X Blockchain ETF aims to invest in firms poised to benefit from the increasing adoption of blockchain technology, covering areas such as digital asset mining and transactions. This ETF tracks the Solactive Blockchain Index, comprising 24 stocks, and has amassed $127.9 million, trading at an average daily volume of 65,000 shares. BKCH has an annual fee of 0.50% (read: ETFs to Buy on Coinbase’s Blowout Q4 earnings).

VanEck Vectors Digital Transformation ETF (DAPP) – Up 7.9%

VanEck Vectors Digital Transformation ETF targets companies leading the shift toward digital asset transformation. Its portfolio includes various sectors, such as exchanges and digital asset infrastructure. The ETF tracks the MVIS Global Digital Assets Equity Index, holds 22 securities, and has accumulated $127.9 million in its asset base, with an average daily trading volume of 336,000. It charges 0.51% in annual fees.

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Ford Motor Company (F): Free Stock Analysis report

NVIDIA Corporation (NVDA): Free Stock Analysis report

Tesla, Inc. (TSLA): Free Stock Analysis report

Global X Blockchain ETF (BKCH): ETF Research Reports

VanEck Digital Transformation ETF (DAPP): ETF Research Reports

Meta Platforms, Inc. (META): Free Stock Analysis report

This article originally published on Zacks Investment Research (zacks.com).

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