Oil ETFs Mixed as Brent Crude Hits 2-Month High

3 Updates 
Tue, February 11, 2025 At 11:20 PM EDT
Sumit Roy | Senior ETF Analyst |

Bond markets rise on Powell's "disinflationary" comments

Bonds ETFs moved decisively higher after Fed Chair Jerome Powell told a forum in Europe that the U.S. was “getting back on the disinflationary path” following the last two rounds of inflation data.

Bond prices rallied and yields on short-term bonds fell following Powell’s comments. The yield on the 10-year Treasury note dipped 1 basis point to 4.45%, while the yield on the 30-year moved a smidge higher to 4.64%.

The core consumer price index grew by 0.16% month-over-month in May, following a 0.29% month-over-month gain in April and a sharp slowdown from the more than 0.35% growth seen during each of the first three months of the year.

The iShares 7-10 Year Treasury Bond ETF (IEF) and the iShares 20+ Year Treasury Bond ETF (TLT) both added 0.3%.

Despite the upbeat tone in bond markets on Tuesday, gains were kept in check by Powell’s remarks that he and his colleagues “want to be more confident that inflation is moving sustainably down toward 2% before start[ing] the process of reducing or loosening policy.”

Markets are still penciling in two rate cuts this year, one in September and one in December. 

Tue, July 2, 2024 At 10:31 AM EDT
Kristin Myers | SVP Content/EIC |

ETFs betting on Tesla Soar while Rate Sensitive ETFs Jump

Electric carmaker Tesla rose on Tuesday after reporting second quarter deliveries that topped expectations, pulling up ETFs that go long on Elon Musk's company and battering those that go short. 

Tesla quarterly deliveries fell 4.8% from last year to nearly 444,000, topping estimates. The stock jumped over 8% on Tuesday. Leveraged ETFs betting on the rising stock price of the carmaker were the top gaining ETFs Tuesday, according to etf.com data. 

TSLT, the T-Rex 2X Long Tesla Daily Target ETF soared over 17%, while TSLL, the Direxion Daily TSLA Bull 1.5X Shares jumped nearly 18%. TSLR, the GraniteShares 1.75x Long TSLA Daily ETF was the biggest gainer, adding more than 18%. 

TSL, the GraniteShares 1.25x Long TSLA Daily ETF had the smallest jump, rising just over 11%. 

Bond ETFs Waver as Yields Fall with Powell Comments

Rate sensitive ETFs like TLT, GOVT, and BIL pared earlier gains as investors watch Fed Chair Jay Powell's speech in Europe for clues on the path of future rate cuts. TLT, the IShares 20+ Year Treasury Bond ETF was little changed after jumping more than 0.5% in early trading and was one of the most actively traded ETFs Tuesday morning, according to etf.com data. Nearly 13 million shares traded before 11 a.m. New York time.

GOVT, the IShares U.S. Treasury Bond ETF also fluctuated, losing early gains to add 0.3%. BIL, the GraniteShares 1.75x Long TSLA Daily ETF hovered close to the flat line. 

Speaking at the European Central Bank (ECB) forum Tuesday afternoon in Portugal, Powell stated that the Fed has made "quite a bit of progress" on inflation, but needed more confidence on inflation cooling towards its 2% target before cutting rates.

Broad markets were a mixed bag after the comments, with the S&P 500 briefly sliding into negative territory. SPY, the SPDR S&P 500 ETF Trust and DIA, the SPDR Dow Jones Industrial Average ETF Trust hovered near the flatline. QQQ, the Invesco QQQ Trust which follows the tech-heavy Nasdaq jumped over 0.1%.

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