High Beta & Momentum ETFs Likely to Rally on War De-escalation Hopes

Group 1 - U.S. stock futures surged following indications from Donald Trump about a potential end to the Iran conflict, despite the Strait of Hormuz remaining closed [1][2] - The Zacks Energy sector is projected to experience a +0.9% earnings growth in Q1 2026, a significant improvement from the previously expected -1.9% decline [4] - High oil prices are negatively impacting consumption-driven sectors, but the profitability of energy-producing assets is providing some offset [5] Group 2 - The current market environment is favorable for high-beta and high-momentum ETFs, which could see gains in a bullish market [6] - Specific ETFs such as Invesco S&P 500 High Beta ETF (SPHB) and Invesco S&P 500 Momentum ETF (SPMO) have underperformed recently but may rally if diplomatic progress is made [7] - The CBOE Volatility Index (VIX) remains above 30, indicating heightened market anxiety, while U.S. benchmark West Texas Intermediate crude is trading above $100 per barrel [8][9]