The recent performance of Nasdaq-traded funds (ETFs) highlights a divergence in market sentiment. While investments heavily reliant on technology, such as semiconductors and artificial intelligence stocks, are experiencing a rebound, there remains hesitation in broader sectors. Some ETFs have recovered by 5-8% from their lows last week, driven by investor optimism regarding upcoming interest rate decisions and better-than-expected earnings. However, trading volume has not fully confirmed this move, and institutional participation remains cautious. Traders should monitor whether this recovery will gain momentum or stall at resistance levels. ETFs can be a great way to achieve diversified investments with lower risk than individual stocks, but timing entry and exit remains a critical factor.