Wall Street was upbeat last week, with the S&P 500 adding about 2.9%, the Dow Jones gaining about 3.7% and the Nasdaq Composite advancing about 2.5%. Both the Dow Jones and the S&P 500 indexes posted their biggest weekly advance since the week of the U.S. presidential election in November.

Gaza truce, easing inflation and solid bank earnings contributed to the Wall Street gains. Most big banks came up with upbeat earnings last week. (read: ETFs to Play on Gaza Truce, Easing Inflation & Solid Bank Earnings).

Find the latest earnings estimates and surprises on Zacks Earnings Calendar.

Plus, retail sales grew at a slower pace than Wall Street had expected in December. This has probably triggered hopes for a dovish Fed in the near term, which in turn boosted the broader market.

Cooling Inflation

The annual inflation rate in the United States rose for the 3rd consecutive month to 2.9% in December 2024 from 2.7% in November, in line with market expectations. This year-end rise was partly driven by low base effects from last year, particularly for energy.

Gaza Ceasefire Agreement Reached

On Wednesday, Israel and Hamas finalized a ceasefire and hostage release deal aimed at ending the 15-month war in the Gaza Strip. The conflict has caused widespread devastation and inflamed regional tensions. The deal will be implemented in three phases. The deal is built on a framework proposed by the Biden administration in May.

Moderate Retail Sales in December 

Retail sales grew at a slower pace than Wall Street had expected in December. Retail sales rose 0.4% sequentially in December. Economists had expected a 0.6% rise in spending, according to Bloomberg data. Meanwhile, retail sales in November were revised up to 0.8% from a prior reading that showed a 0.7% increase in the month, according to Census Bureau data (read: 4 ETF Sectors to Win Despite Moderate Retail Sales in December).

Bitcoin Stages Rebound

Bitcoin staged a rebound last week with about 9% gains. Most securities that are linked to Bitcoin mining and trading recorded gains in prices. For example, MicroStrategy Inc MSTR, the world’s largest Bitcoin hoarder, shares surged about 28% last week. Shares of Coinbase Global Inc. COIN, which operates a cryptocurrency exchange platform, jumped about 20% last week (read: Will MicroStrategy ETFs Get a Boost from the Nasdaq-100 Joining?).

ETFs to Play

Against this backdrop, below we highlight a few exchange-traded funds (ETFs) that gained last week.

YieldMax MSTR Option Income Strategy ETF (MSTY) – Up 13.3%

The YieldMax MSTR Option Income Strategy ETF seeks current income and exposure to the share price of the common stock of MicroStrategy Incorporated, subject to a limit on potential investment gains. The expense ratio of the ETF is 0.99% annually. The fund yields 99.73% annually.

First Trust SkyBridge Crypto Industry & Digital Economy ETF (CRPT) – Up 13.2%

The First Trust SkyBridge Crypto Industry and Digital Economy ETF seeks to provide investors with capital appreciation. The ETF’s top holding is Coinbase Global. The COIN stock takes about a 17.44% weight of the ETF. The expense ratio of the ETF is 0.85% annually. The ETF yields 1.54% annually.

STKD Bitcoin & Gold ETF (BTGD) – Up 11.3%

 The STKD Bitcoin & Gold ETF seeks to provide exposure to two prominent asset classes, Bitcoin and gold. The expense ratio is 1.00%.

Fidelity Wise Origin Bitcoin Fund (FBTC) – Up 10.9%

The Fidelity Wise Origin Bitcoin Fund seeks to track the performance of Bitcoin, as measured by the performance of the Fidelity Bitcoin Reference Rate, adjusted for expenses and other liabilities. The ETF charges 25 bps in fees.

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MicroStrategy Incorporated (MSTR) : Free Stock Analysis Report

Coinbase Global, Inc. (COIN) : Free Stock Analysis Report

First Trust SkyBridge Crypto Industry and Digital Economy ETF (CRPT): ETF Research Reports

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