Wall Street Rallies on Trade Optimism: Growth ETFs to Buy

Market Overview - Stocks experienced a significant rise on July 23, 2023, driven by optimism regarding potential trade agreements in the U.S. ahead of a tariff deadline [1] - The Dow Jones Industrial Average increased by 507.85 points (1.14%) to close at 45,010.29, just four points shy of a record [2] - The S&P 500 rose by 0.78% to a record high of 6,358.91, marking its 12th all-time closing high this year [2] - The Nasdaq Composite climbed 0.61% to settle at 21,020.02, achieving its first-ever close above 21,000 [2] Trade Agreements - Investor sentiment improved following President Trump's announcement of a finalized "massive Deal" with Japan, which includes reciprocal 15% tariffs on Japanese exports to the U.S. [3] - The U.S. is reportedly nearing a 15% tariff agreement with the European Union, contributing to market optimism [4] - Additional trade agreements with Indonesia, China, and the United Kingdom have also been outlined as part of the U.S. strategy to finalize deals before the August 1 tariff deadline [4] Market Confidence - Following initial market volatility due to Trump's announcement of sweeping tariffs in April, investor confidence has rebounded, supported by strong revenue generation and increased domestic investment [5] - The S&P 500 closed at a record high for the second consecutive session, with 42 stocks in the index reaching new 52-week highs, indicating bullish sentiment on Wall Street [6] Investment Opportunities - In the context of reduced tariff threats, several high-growth exchange-traded funds (ETFs) are highlighted as potential investment opportunities [7] - The Invesco QQQ Trust (QQQ) has a price-to-earnings (P/E) ratio of 39.98X, while other ETFs such as Invesco S&P 500 Pure Growth ETF (RPG) and Vanguard U.S. Momentum Factor ETF (VFMO) have P/E ratios of 25.99X and 24.4X respectively [7][8][9] - The First Trust Mid Cap Growth AlphaDEX Fund (FNY) and Invesco S&P MidCap 400 Pure Growth ETF (RFG) also present attractive valuations with P/E ratios of 25.48X and 20.06X respectively [10][11]