Homebuilder ETFs jump on interest-rate cut

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Exchange-traded funds with exposure to the residential construction industry surged Tuesday morning after the Federal Reserve cut interest rates. The Direxion Daily Homebuilders & Supplies Bull 3x Shares NAIL, +4.64%, a leveraged fund, was 3.7% higher mid-morning and is up more than 14% in the week to date. The iShares U.S. Home Construction ETF ITB, +1.01% rose 1.2%, and the SPDR S&P Homebuilders ETF XHB, +0.16% climbed 0.9%. Investors expect interest rate-sensitive areas of the economy, like housing, to benefit from lower rates.