Best-Performing Leveraged ETFs of Last Week

Wall Street concluded the week with modest declines across major indices, ending a four-week winning streak for the Nasdaq and S&P 500. This occurred as August PCE inflation data met expectations, reinforcing anticipation of two Fed rate cuts by year-end, including a highly probable October cut, despite a robust Q2 2025 GDP revision to 3.8% and stable long-term inflation expectations. Concurrently, new tariffs ranging from 30-100% were announced on various imports starting October 1, signaling renewed trade policy uncertainty.

Analysis

The U.S. market displayed a notable divergence last week, with major indices like the S&P 500 (-0.3%) and Nasdaq (-0.7%) posting their first weekly decline in four weeks, while specific stocks demonstrated significant strength on fundamental news. The macroeconomic backdrop remains complex; robust Q2 2025 GDP growth, revised upward to 3.8%, signals underlying economic resilience, yet consumer sentiment registered a 21.6% year-over-year slump. Inflation, as measured by the core PCE index, came in as expected at an annual rate of 2.9%, reinforcing market conviction for two more quarter-point Fed rate cuts by year-end, with an 87.7% probability priced in for an October cut. This dovish monetary policy outlook is counterbalanced by renewed trade policy risk, as the U.S. announced new tariffs of 30-100% on select imports starting October 1. Amidst this broad market consolidation, company-specific catalysts drove substantial outperformance in the technology sector. Intel (INTC) stock surged 19.7% following an $8.9 billion U.S. government investment and strategic partnerships with industry leaders. Similarly, Marvell Technology (MRVL) jumped 13.2% after its CEO provided a positive outlook, while Lucid Group (LCID) rose 13.7% on ambitious production targets to more than double its EV output in 2025.

Key Decisions for Investors

• Given the divergence between weak index performance and strong individual stock rallies, investors should prioritize bottom-up, catalyst-driven opportunities over broad market exposure.
• Consider overweighting semiconductor names like Intel (INTC), which is benefiting from direct government investment and a clear strategic turnaround plan, signaling strong institutional support.
• Monitor portfolios for exposure to industries targeted by new tariffs, such as heavy trucks and specific pharmaceutical imports, as the 30-100% duties introduce significant margin and supply chain risks.
• The high probability of impending Fed rate cuts provides a tailwind for growth-oriented equities; maintaining exposure to companies with clear expansion plans, such as Lucid (LCID) and Webull (BULL), may be prudent in this environment.