5 Single Stock Inverse/Leveraged ETFs That Ruled Last Week

Wall Street was moderately upbeat last week. The S&P 500, the Dow Jones and the Nasdaq Composite added 1.1%, 1.2% and 1.1%, respectively. Among the key developments, the Federal Reserve’s September meeting minutes revealed the conflicting perspectives. While a "substantial majority" of officials supported a 50-basis-point reduction, some preferred a smaller 25-basis-point cut.

The annual inflation rate in the United States slowed for the sixth successive month to 2.4% in September 2024, the lowest since February 2021, from 2.5% in August. However, the figure came above the forecast of 2.3%.  The monthly core inflation rate remained at 0.3%, the same as in August but above the forecast of 0.2%. Inflation accelerated for food (2.3% versus 2.1%) and transportation (8.5% versus 7.9%).

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

Inverse/Leveraged ETFs in Focus              

Defiance Daily Target 1.75x Long MSTR ETF (MSTX) – Up 35.9%

MicroStrategy shares surged 18% last week, with prominent gains noticed on Oct. 11, 2024. Since the company adopted a bitcoin-centered strategy, its shares have been on a surge.

GraniteShares 2x Long UBER Daily ETF (UBRL) – Up 33.3%

Shares of Uber UBER and Lyft LYFT surged on Oct. 11, 2024, following Tesla’s TSLA not-so-exciting robotaxi event, which failed to meet expectations, raising concerns among ridesharing investors. Tesla’s much-anticipated unveiling of robotaxi lacked some crucial details about the potential ridesharing app. This boosted competitor Uber's stock to an all-time high. Uber shares jumped 10.8% on that day.

Defiance Daily Target 2X Long SMCI ETF (SMCX) – Up 30.6%

Super Micro Computer SMCI stock price jumped 15% last week. The company designs, develops, and sells energy-efficient, application-optimized server solutions based on the x86 architecture. The company recently said that it shipped more than 100,000 GPUs with direct liquid cooling solutions for a few very large data centers built to power AI applications. Hence, its gain is related to the ongoing AI boom.-

Tradr 2X Short TSLA Daily ETF (TSLQ) – Up 28.5%

Tesla shares slumped 8.8% on Oct. 11. On Oct. 10, 2024, Tesla introduced its CyberCab, an autonomous vehicle designed for ridesharing, along with a 20-seater "RoboVan." Tesla CEO Elon Musk claimed that the CyberCab would be priced under $30,000 and envisioned individuals operating fleets of these vehicles as an alternative to Uber and Lyft. Despite this, analysts were underwhelmed by the lack of concrete information regarding Tesla’s plans to launch a ridesharing platform.

GraniteShares 2x Long PLTR Daily ETF (PTIR) – Up 17.2%

Palantir Technologies’ PLTR stock gained 9.1% last week. The company builds and deploys software platforms for the intelligence community principally in the United States. Among the recent news, Palantir owns 8.7% of the struggling electric vehicle startup Faraday Future. The data-mining company is eyeing an EV foothold.

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