Wall Street posted mixed results last week, with the S&P 500 rising 1.2%, the Dow Jones Industrial Average gaining 0.9%, and the Nasdaq Composite increasing 0.6%, while the Russell 2000 fell 0.9%. Within this broad market movement, five ETF sectors outperformed their benchmarks, driven by distinct geopolitical and corporate catalysts.
Brazilian equity funds led the gains following a surprise electoral development. Right-wing Senator Flavio Bolsonaro captured 47% of the vote in the first round of the presidential election, edging out incumbent Luiz Inácio Lula da Silva, who received approximately 45%. This outcome defied polls that had projected Lula to lead. The market reacted positively to the right-wing candidate's plurality, anticipating a favorable environment for business. A runoff between the two candidates is scheduled for Oct. 25. Consequently, Brazil-focused small-cap ETFs surged; the VanEck Brazil Small-Cap ETF (BRF) climbed 11%, while the iShares MSCI Brazil Small-Cap ETF (EWZS) rose 9.8%.
Tanker shipping ETFs also recorded significant gains amid escalating security concerns in the Middle East. According to CNBC, approximately 11 tankers faced attacks while transiting the Strait of Hormuz during the week ending Oct. 4. This represented the highest number of strikes on commercial ships since the war began. Although Middle Eastern crude oil exports recovered to prewar levels in September, supported by U.S. military efforts, the rising threat level is likely to force tankers to avoid chokepoints and take longer detours. These extended routes will tie up the global fleet for weeks longer than usual. Additionally, marine insurance companies have sharply increased fees in response to the heightened risk. The Breakwave Tanker Shipping ETF (BWET) rose 10.8% during the period.
U.S. utility stocks benefited from a major corporate announcement involving nuclear power and artificial intelligence. Constellation Energy (CEG) shares jumped approximately 15% after Google disclosed a 20-year agreement to secure 890 megawatts of nuclear electricity. This deal reinforced market expectations that AI data centers will drive sustained long-term power demand. ETFs with heavy exposure to Constellation Energy saw substantial gains, with the Virtus Reaves Utilities ETF (UTES) up 6.9%.
Cybersecurity funds continued their upward trend as investors weighed the growing intersection of AI adoption and security threats. Despite concerns regarding AI safety and elevated valuations, Wall Street remains optimistic about the sector's long-term potential. However, sophisticated cyberattacks and rogue AI agents are increasing risks to sensitive data and infrastructure. These factors, combined with geopolitical tensions and rising cyberwarfare, are expected to boost cybersecurity spending across market cycles. The Global X Cybersecurity ETF (BUG) increased 6.6%, and the WisdomTree Cybersecurity Fund (WCBR) rose 5.9%.
Cloud computing stocks also advanced on renewed optimism regarding AI-driven demand and monetization strategies by major technology firms. Investors are seeking signs that accelerating cloud adoption and growing revenue backlogs at companies such as Amazon, Microsoft, and Oracle justify their extensive AI infrastructure spending. Goldman Sachs anticipates that year-over-year cloud revenue growth for major providers will rise from 48% in Q2 to 55% in Q3, a projection cited by Yahoo Finance. The WisdomTree Cloud Computing Fund (WCLD) gained 5.8%.