Last week was volatile for Wall Street. While the NVIDIA earnings-led AI boom drove the market in the first part of the week, hawkish Fed minutes tried to take the market in the opposite direction later on. The Dow Jones saw a sharp 600-point drop on Thursday, marking its most substantial loss in more than a year.

Renewed concerns over interest rates triggered Thursday's market turmoil. However, on Friday, Wall Street tried to recoup losses. Overall, the S&P 500 was up 0.03%, the Dow Jones lost 2.3% and the Nasdaq advanced 1.4%.

Shift in Fed Expectations

Stronger-than-anticipated U.S. business data prompted a reassessment of the Federal Reserve's interest rate trajectory, leading to a more divided outlook among traders. Some traders revised its forecast, indicating a delay in the Fed's anticipated rate cut, now targeting September instead of July.

NVIDIA, following an impressive quarterly performance, continued its upward trajectory, rising 13.5% last week to around $1,064 per share. The upcoming stock split for NVIDIA is expected to stimulate further retail investor interest.

Economic Indicators

A revised University of Michigan consumer sentiment index for May was released, showing a reading of 69.1. Despite surpassing expectations, this figure indicated a month-over-month decline, reflecting concerns regarding inflation and interest rates and marking the lowest sentiment level in approximately five months.

Top ETFs in Focus

Against this backdrop, below we highlight a few winning ETF areas of last week.

Ether

Bitwise Ethereum Strategy ETF (AETH) Up 21.3%

ProShares Ether Strategy ETF (EETH) Up 20.9%

In a landmark move, the U.S. Securities and Exchange Commission (SEC) gave the green signal last week for the potential launch of eight exchange-traded funds (ETFs) linked to ether, the second-largest cryptocurrency globally. This decision followed the previous approval of bitcoin ETFs, marking a pivotal shift in the regulatory environment for digital assets. The SEC's approval of ether ETFs marks a notable shift from its historical stance against the crypto industry (read: Bitcoin ETFs to Gain as SEC Approves Ether ETFs).

Solar

Invesco Solar ETF (TAN) Up 11.5%

The First Solar stock soared last week after analysts at UBS raised their price target on the stock, citing its potential to benefit from big tech companies' investments in artificial intelligence AI. Analysts have indicated that Microsoft and other hyper-scalers might depend on renewable energy companies such as First Solar to meet AI demand and achieve their carbon neutrality objectives.

Hydrogen

Defiance Next Gen H2 ETF HDRO Up 11.2%

Global X Hydrogen ETF HYDR Up 10.3%

Shares of hydrogen companies have experienced solid gains lately as investors returned to higher-risk assets. Additionally, the industry is being bolstered by a $1.7 billion conditional loan guarantee. Experts believe that hydrogen will impact the lowering of carbon emissions globally. Steelmaking, aviation and shipping are among the sectors likely to intensively utilize green hydrogen. Meanwhile, many countries are developing multiple, large-scale hydrogen projects.

Zacks Investment Research

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