As the U.S. and global markets continue to rebound, exchange-traded funds (ETFs) and indices based on the Nasdaq 100 (QQQ), communication services (XLC), and transports (IYT) are gaining some noteworthy attention.
Last week, the Nasdaq 100 and communications services sectors caught a big upwards bullish swing, reaching new record highs. This new bias could be the start of a mini bull run in the tech sector, which investors should closely monitor.
The Nasdaq 100 index (QQQ) is composed of large and diverse technology companies, many of which have recently reported strong earnings. This nearly 7% surge signals that investors are now confident in the economic stability of these companies, despite the economic fallout from the pandemic. QQQ ETFs are a great way to capture most of the Nasdaq 100’s growth, and have had strong investor interest in recent months.
The communications services sector, represented by XLC, continues to gain additional ground. This ETF holds companies from the media, telecom, streaming services, entertainment, and digital marketing industries, which have all seen strong upticks in activity since the start of the pandemic. This sector is expected to be very beneficial in the approaching digital shift and will likely continue to grow at a notable pace.
Lastly, transports (IYT) have also been seeing some benefits in their renewed bullish bias. This ETF is composed of airlines, railways, trucking and shipping companies, all of which have seen significant improvements in performance recently due to increased consumer demand and stimulus package funding. Investors may want to consider adding transports to their portfolios as they have the potential to benefit from any economic upturn.
In conclusion, the Nasdaq 100 (QQQ), communications services (XLC), and transports (IYT) ETFs have seen a newfound bullish bias in recent weeks. This could be a sign that investors are confident in the stability of the underlying companies, and their long-term growth potential. As the world continually adapts and digital shifts, these sectors could potentially benefit greatly in the future.