The Market Takes Off After FOMC, These Are The Sectors To Watch
ETF Trade Watch
Fed Chairman Jerome Powell announced yesterday that the Fed would raise interest rates another quarter percent. His press conference held after the announcement of the rate hike was another hawkish statement where he reaffirmed the Fed’s commitment to getting inflation down to their 2% target. Despite this hawkishness and raising of interest rates, which is normally not a very good sign for the economy, the market rocketed higher, giving some people pause over still calling this a bear market.
Let’s take a look at some sectors we should keep an eye on now that the market has found a little more push behind it.
Technology Select Sector SPDR ETF (XLK)
One obvious choice for a bull run in the market is one of our favorite sectors, Technology. When the market rises like it has done, it is often the Tech Sector that is carrying much of the weight. Names like Nvidia (NVDA), Microsoft (MSFT), and Meta Platforms (META), which rose over 20% in after hours and pre-market trading on the back of their earnings report. The is definitely a sector to keep on watch if the market decides to fly higher.
VanEck Gold Miners ETF (GDX)
Gold has found some solid footing over the past several months, trading below $1,700 back in November. Fat forward to today where the price of gold is just under $2,000 per ounce. This is good news for the gold ETF, GDX, which is a good options for those looking to gain exposure to the yellow metal and join in on the rally above and beyond that $2,000 mark. Be sure to check out the video below to confirm any levels you might have set for the ETF.
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