AAPX Tumbles, GURU Gains as Apple, Nuvalent Lead ETF Moves

The T-Rex 2X Long Apple Daily Target ETF (AAPX) fell 5.6% after Apple shares slumped 2.7% due to weaker-than-expected demand for its latest iPhone models. Analysts cited a 12% drop in iPhone 16 sales compared to earlier models, contributing to the ETF’s decline.

The SPDR S&P Metals & Mining ETF (XME) edged up 0.1%, and the American Beacon GLG Natural Resources ETF (MGNR) rose 0.9%. Both ETFs benefited from Alcoa Corporation’s 6% jump after it announced the sale of its 25.1% stake in the Ma’aden joint venture for $1.1 billion.

The Global X Guru Index ETF (GURU) gained 1%, driven by a 28% surge in Nuvalent shares. The biopharmaceutical company posted positive data on two experimental cancer treatments, sending its stock to an all-time high.

Meanwhile, the REX FANG & Innovation Equity Premium Income ETF (FEPI) slipped 0.2% after Micron Technology dropped 4.4%. Morgan Stanley cut its price target for Micron, citing concerns over slowing growth.

Tech stocks were sliding during Monday's midday trading session, sending tech ETFs skidding. MAGS, the Roundhill Magnificent Seven ETF dropped nearly 1%, dragged down by dips in Apple and chipmaker Nvidia. QQQ, the tech-heavy Invesco QQQ Trust also fell, dropping more than half a percentage point. 

XLK, the Technology Select Sector SPDR Fund struggled the least, slipping .40%. 

Investors have been more risk-off on the high growth names that had been mounting a comeback and leading the market rallies as of late. While a Fed rate cut could spur tech stocks to go higher, traders haven't been able to shake off worries about future growth potential and a slowing economy next year. 

As SPY, the SPDR S&P 500 ETF Trust hovered near the flatline, RSP, the Invesco S&P 500 Equal Weight ETF jumped more than .60%. The fund is a proxy for roughly 450 small and mid-cap names that aren't among the Magnificent Seven or megacap stocks. As the rate cut looms, small caps are shining as investors consider putting their money on names that have a potentially larger runway for liftoff once the Fed starts to cut. 

In the broader market, DIA, the SPDR Dow Jones Industrial Average ETF Trust jumped just under half a percentage point band touched record highs.

Equity markets are mixed, expressing calm in late morning trading Monday as investors await Wednesday’s Federal Reserve Board meeting, where officials may cut interest rates for the first time in four years.

The S&P 500 Index, represented by the SPDR S&P 500 Trust (SPY), is hovering near an all-time high and is up more than 18% this year, despite the ETF falling 0.2% this morning, as the latest inflation data on Friday offered more support for a 50-basis point Fed rate cut.

Meanwhile, the Dow Jones Industrial Average tracking fund, the SPDR Dow Jones Industrial Average ETF Trust (DIA), added 0.2%.

Meanwhile, the market consensus is still slightly favoring a 25-basis point cut to move the Fed rate off its 23-year high of between 5.25% and 5.5%.

The next major data point before the Fed’s meeting this week is Tuesday’s retail sale figures, which are projected to show a month-over-month decline of 0.2% for August. Excluding auto sales, the retail data is projected to show a month-over-month increase of 0.2%.

For investors and financial advisors, the question this week will be how and where to start allocating investments as those cash accounts become less attractive to savers.

Basic economics would suggest investors should already be moving out on the yield curve and extending duration on the fixed income side, but lower rates are also generally bullish for stocks, so the mountain of cash on the sidelines could see a diversified spread across portfolios.