In an encouraging turn of events, broad-market exchange-traded funds such as IWM and IVV registered significant gains. The Invesco QQQ Trust (QQQ), a heavily traded ETF, experienced a notable rise of 3%. Midday trading on Thursday saw all major US equity indexes climb as high-growth sectors, particularly technology and communication services, rallied strongly.
This surge in market activity can largely be attributed to the Federal Reserve's substantial easing of monetary policy, marking the first significant change in strategy in four years. In the energy sector, both the iShares US Energy ETF (IYE) and the Energy Select Sector SPDR (XLE) experienced a robust increase of 1.9%, underscoring investor optimism in energy assets. Moving onto the technology landscape, the Technology Select Sector SPDR ETF (XLK) surged by 3.5%.
Similarly, the iShares US Technology ETF (IYW) mirrored this growth, also reporting a 3.5% gain. The iShares Expanded Tech Sector ETF (IGM) was not far behind, with a 3.3% rise. Within sub-sectors, the SPDR S&P Semiconductor ETF (XSD) expanded by an impressive 4.8%, while the iShares Semiconductor ETF (SOXX) soared to a 5.3% increase, showcasing the vitality of tech-driven investments. In the financial sector, the Financial Select Sector SPDR (XLF) posted a modest rise of 1%.
Meanwhile, the Direxion Daily Financial Bull 3X Shares (FAS) continued its upward trajectory with a 3.2% increase. Conversely, the Direxion Daily Financial Bear 3X Shares (FAZ) experienced a dip of 3%, illustrating a split sentiment amongst investors as the sector adjusts to the evolving economic landscape. Regarding commodities, crude prices reflected an increase of 2%, with the United States Oil Fund (USO) showing a notable rise of 3.6%.
Natural gas prices also saw an uptick of 2%. However, the United States Natural Gas Fund (UNG) edged down slightly by 0.5%. Gold prices gained 0.7% on the Comex market, while SPDR Gold Shares (GLD) increased by 1.7%. Silver experienced an impressive rally, climbing by 2.4%, and the iShares Silver Trust (SLV) registered a significant 4.1% increase. In consumer goods, the Consumer Staples Select Sector SPDR (XLP) fell by 0.5%, indicating some pressure on essentials.
In contrast, both the Vanguard Consumer Staples ETF (VDC) and the iShares Dow Jones US Consumer Goods (IYK) also reported declines. On the other hand, the Consumer Discretionary Select Sector SPDR (XLY) rose by an encouraging 2.3%. The retail fund VanEck Vectors Retail ETF (RTH) and SPDR S&P Retail (XRT) posted positive returns affirming the resilience of consumer behavior amidst economic fluctuations. The health care sector showed slight progress, with the Health Care Select Sector SPDR (XLV) up by 0.3%.
The iShares US Healthcare (IYH) and Vanguard Health Care ETF (VHT) both reflected upward trends as well. In a more dynamic sub-sector, the iShares NASDAQ Biotechnology ETF (IBB) gained 1.8%, suggesting ongoing innovations in the biotech arena. Finally, in the industrial sector, the Select Sector SPDR-Industrial (XLI) rose 1.7%, with both Vanguard Industrials (VIS) and iShares US Industrials (IYJ) presenting positive movements as well.
This significant rally across various sectors underscores the market's positive sentiment during a time of monetary policy adjustment, providing a strong backdrop for continued investment and growth. $US30 $US500.