Market Optimism, Breakouts & Momentum Movers - Weekend Watchlist

Markets defied expectations this week. Despite a forecast of early-week gains followed by a pullback, stocks consolidated initially and then rallied midweek.

The S&P 500 paused after an eight-day win streak but surged on news of a U.S.–U.K. trade framework and an upcoming U.S.–China meeting. President Trump's social media post suggesting a potential reduction in tariffs on China added to the optimism.

Investors are now focused on the anticipated meeting between U.S. Treasury Secretary Scott Bessent and Chinese officials, which could significantly influence market direction on Monday.

‎TLDR Stock Market Weekly Update - May 9, 2025

📉Market Trends

• Trade Developments: Markets remain optimistic about potential trade deals between the U.S. and other countries, especially China.

• Economic Indicators: Unit Labor Costs rose 5.7%, the largest jump in 2.5 years, while Initial Jobless Claims decreased to 228K.

• GDP Forecast: The Atlanta Fed's GDPNow estimate for Q1 GDP was revised up to +2.3%.

📊 Technical Levels & Market Signals

• S&P 500 (SPX): Up ~17% since April 7, approaching resistance at the 200-day SMA (~5,748).

• Nasdaq 100 (NDX): Facing resistance at the 200-day SMA (~20,181); needs a close above to confirm bullish momentum.

• Market Breadth: Improving, with 44.4% of S&P 500 stocks above their 200-day SMA, up from 37.8% last week.

💰 Inflation & Consumer Confidence

• Labor Costs: Unit Labor Costs increased 5.7%, exceeding expectations and marking the largest rise in 2.5 years.

• Jobless Claims: Initial claims fell to 228K, below the expected 235K, indicating a strong labor market.

🏛️ Federal Reserve & Interest Rates

• Treasury Yields: Slight uptick this week; 2-year at 3.86%, 10-year at 4.359%, and 30-year at 4.828%.

• Rate Cut Expectations: Bloomberg reports a decrease in expectations for a 25-basis-point cut at the June FOMC meeting to 17%, down from 37% last week.

Sources: Charles Schwab

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📅 Coming up next week…

Economic Events:

• Monday, May 12: No major economic reports scheduled.

• Tuesday, May 13: Consumer Price Index (CPI)

• Wednesday, May 14: Producer Price Index (PPI), Retail Sales

• Thursday, May 15: Initial & Continuing Jobless Claims, Philadelphia Fed Index

• Friday, May 16: University of Michigan Consumer Sentiment (Preliminary)

Notable Earnings Reports:

• Monday, May 12: FOXA, PLUG, HTZ

• Tuesday, May 13: JD, UAA, OKLO, GEVO, CAPR,

• Wednesday, May 14: SONY, LAZR, CSCO

• Thursday, May 15: BABA, WMT, AMAT, CAVA

Sources: Earnings Whispers, Charles Schwab

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Trading with Leveraged ETFs: Risks & Strategies

Leveraged Exchange-Traded Funds (ETFs) are powerful tools that offer traders amplified exposure to market movements. These funds aim to deliver 2x or -2x (inverse) the daily return of an underlying index, making them attractive for traders seeking high returns in a short period. However, with great potential comes significant risk.

Know Your Assets

Before trading leveraged ETFs, traders should fully understand what they track and the leverage the fund provides. With leveraged 2x, or inverse-leveraged 2x magnified moves, even small mistakes can turn profits into losses. 

Here are some of the most popular funds at BetaPro ETFs and the assets they track:

Meet BetaPro ETFs

For a more comprehensive list and detailed information, visit BetaPro.ca. 

A note of caution: Leveraging ETFs can amplify index returns, enhancing daily gains but also magnifying daily losses in downturns. Inverse ETFs profit from market declines but can incur rapid daily losses if trends reverse. Leveraged ETFs should NOT be held overnight. Investors should assess their risk capacity and conduct thorough research before investing.

_{As of January 20, 2025, BetaPro ETFs updated several of their tickers to better reflect their respective exposures. Check out the full press release here.}

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