Is the Fed indeed bringing its rate hikes to an end? With the most recent inflation data coming in significantly cooler than previous reads, that may be the case. That may be one factor supporting the broader stock market and perhaps reigniting investor interest in growth and tech. It also underlines intriguing tech action for the ALPS Disruptive Technologies ETF (DTEC).
The fund didn’t just surpass a local resistance point in its price Wednesday, around $35 per YCharts, it rose above both its 50- and 200-day simple moving averages Wednesday. That took its price toward a three-month high, while also suggesting markets found the strategy appealing. So what might be driving that interest?
The disruptive tech ETF DTEC has sent a strong tech signal as of Wednesday.
See more: “As Rate Hikes Pause, Eye Disruptive Tech?”
As mentioned above, markets overall may be swooning at the prospect of a “soft landing.” Whipping inflation without creating a recession seemed a very unlikely prospect entering 2023. Looking forward from November 2023, however, it seems the caper may be nearing completion.
The Disruptive Tech ETF DTEC’s Case
Not only does that see some sunlight cut through ominous rare hike clouds, it also increases the possibility of near- to medium-term rate “cuts.” Markets have been salivating about the prospect of cuts for much of the year. Should the Fed actually be done with hikes, they’ve come even closer. That would give tech firms some oxygen and relief from debt costs they haven’t faced since the end of the great financial crisis.
Those and other factors could speak to the disruptive tech ETF’s spike. DTEC has done reasonably well YTD, returning 10.6% in that time. The fund has also returned 6.1% over the last month. DTEC invests across 10 different themes, including but not limited to innovation, clean energy, cloud computing, data & analytics, and more. Charging 50 basis points, DTEC may present an intriguing option for those looking to add some growth strategies to their portfolio.
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