Wall Street had a strong rally last week, driven by a combination of easing core inflation, a Gaza ceasefire agreement and robust bank earnings. Major indices closed the week with impressive gains: the S&P 500 was up 2.9%, the Dow Jones climbed 3.7% and the Nasdaq Composite advanced 2.4%.

Needless to say, several ETFs also cashed in on the upbeat market environment. Here are five ETFs that ended the week on Jan. 17 on a happy note.

Direxion Daily Real Estate Bull 3X Shares DRN
Weekly gain: 15.25%
Focus: Tracks U.S. REITs, offering a short-term view of the U.S. real estate sector.
Expense Ratio: 1.01%

YieldMax MSTR Option Income Strategy ETF MSTY

Weekly Gain: 13.28%
Focus: Tracks MicroStrategy's share price while generating income.
Expense Ratio: 0.99%

First Trust SkyBridge Crypto Industry & Digital Economy ETF CRPT

Weekly Gain: 13.20%
Focus: Invests in crypto-related industries, with Coinbase Global Inc. COIN as its top holding.
Expense Ratio: 0.85%

ProShares Ultra Industrials UXI

Weekly Gain: 11.3%
Focus: Tracks the Dow Jones U.S. Industrials Index. General Electric Co. GE and Caterpillar Inc. CAT are among its top holdings.
Expense Ratio: 0.75%

ProShares Ultra SmallCap600 SAA

Weekly Gain: 8.9%
Focus: Mirrors the S&P SmallCap 600 Index and includes stocks of companies like Abercrombie & Fitch Co. ANF and Fabrinet FN in its portfolio.
Expense Ratio: 0.75%

What Drove Markets

While December’s annual inflation ticked up slightly to 2.9%, the increase came within market expectations, which served as a hope for a potentially dovish stance from the Federal Reserve. Retail sales rose by 0.4% in December, below the expected 0.6%, further fanning speculation of slower rate hikes.

See Also: Three Hostages Cross Into Israeli Territory After 471 Days as Ceasefire Begins

In geopolitical news, the ceasefire between Israel and Hamas brought some relief to global markets, reducing risks of regional disruptions. Additionally, positive earnings from major banks underlined the resilience of financial institutions, adding to market optimism.

Furthermore, Bitcoin’s standout performance last week sent the cryptocurrency 9% northward, marking a solid recovery. Inevitably, this rally lifted securities linked to Bitcoin, including MicroStrategy Inc MSTR, which saw its shares jump 28%, and Coinbase Global, up 20%.

Again, major banks inaugurated the fourth-quarter 2024 earnings season with strong results, pushing bank stocks up.

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