Yahoo Finance Nasdaq ETF's First Six-week Rally Since Jan 2020: Stock Winners
Proving the famous adage "Sell in May and Go Away" wrong, the tech-and-biotech-heavy Nasdaq recorded six consecutive weeks of gains last week and marked its first six-week rally since Jan 2020, led by the AI-powered charge of mega-cap Tech. The Nasdaq Composite has established a substantial lead over the Dow Jones Industrial Average this year.
Chances of the Federal Reserve cutting interest rates or staying put, lower Treasury yields, U.S. recession fears, continued regional banking crisis in the United States and the AI mania drove interest in mega-cap technology names, which appear to be safe bets.
Also, investors seeking security amid concerns ranging from the debt ceiling to a potential U.S. banking crisis have found solace in mega-cap stocks like Google parent company Alphabet, Microsoft Corp., and Amazon.com. These stocks have garnered appeal due to their robust financial positions and reliable cash flows, making them enticing investment options in recent months.
Also, Silicon Valley layoffs have been intense. Amazon, Meta, Alphabet, Twitter, Salesforce – most of the tech giants have been on layoff spree. Such layoffs and cost reduction may boost profitability of the tech companies. This is another reason for the recent tech rally.
Last year was troublesome for these stocks. Their valuation got corrected massively, which led to a rally this year on lower rates. Inflation is showing signs of easing finally and this acts as a tailwind for the tech-heavy Nasdaq. The Nasdaq is growth-oriented and performs better in a low-rate environment.
Against this backdrop, the Nasdaq-100 ETF QQQ has been in high momentum. Below we highlight a few winning stocks of the Nasdaq.
Stocks in Focus
ADS-TEC Energy (ADSE) – Up 201% In the Last Six Weeks
ADS-TEC Energy GmbH provides battery-buffered ultrafast charging technology. ADS-TEC Energy GmbH, formerly known as European Sustainable Growth Acquisition Corp. The stock has a Zacks Rank #2 (Buy).
Applied Digital Corporation (APLD) – Up 209% In the Last Six Weeks
Applied Digital Corporation is a designer, builder and operator of next-generation datacenters which provide power to blockchain infrastructure and support High-Performance Computing applications. The stock has a Zacks Rank #3 (Hold).
eFFECTOR Therapeutics Inc. (EFTR) – Up 200% In the Last Six Weeks
eFFECTOR Therapeutics Inc. is a clinical-stage biopharmaceutical company focused on pioneering the development of a new class of oncology drugs referred to as STRIs. The stock has a Zacks Rank #3.
Context Therapeutics Inc. (CNTX) – Up 120% In the Last Six Weeks
Context Therapeutics Inc. is a women's oncology company developing advanced small molecule and immunotherapy treatments to transform care for hormone-driven breast and gynecological cancers. The stock has a Zacks Rank #3.
Minerva Neurosciences NERV– Up 170% In the Last Six Weeks
The Zacks Rank #2 company is a clinical-stage biopharmaceutical company. It is focused on the development and commercialization of a portfolio of product candidates to treat central nervous system diseases.
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Minerva Neurosciences, Inc (NERV) : Free Stock Analysis Report
Applied Digital Corporation (APLD) : Free Stock Analysis Report
eFFECTOR Therapeutics, Inc. (EFTR) : Free Stock Analysis Report
Context Therapeutics Inc. (CNTX) : Free Stock Analysis Report
ADS-TEC Energy PLC (ADSE) : Free Stock Analysis Report
