Noteworthy ETF inflows: CIBR, CRWD, NET, AKAM

What happened: The tech rally is rotating, with cybersecurity stocks surging. The First Trust Nasdaq Cybersecurity ETF (CIBR) approached a record close on Monday, driven by gains in CrowdStrike (CRWD), JFrog (FROG), Palo Alto Networks (PANW), and Fortinet (FTNT). CIBR's share price is $83.86, nearing its 52-week high of $94.395. Meanwhile, global cybersecurity spending crossed $300 billion, with CIBR, iShares Cybersecurity and Tech ETF (HACK), and VanEck Cybersecurity ETF (BUG) positioned to benefit.

Market impact: The cybersecurity sector is booming due to increased threats and demand for protection. CIBR, with $13 billion in assets and 46 holdings, is a broad play, while BUG focuses on pure-play cybersecurity companies. Both ETFs are seeing inflows, indicating investor confidence in the sector's growth prospects. This trend could drive further gains in related stocks and ETFs, with potential spillover effects into networking and tech sectors.

What to watch next: CrowdStrike's (CRWD) earnings report on May 25 will provide insights into the company's performance and growth prospects. Additionally, keep an eye on CIBR's price action around its 52-week high and the $90 level, which could act as resistance. Lastly, monitor global cybersecurity spending trends and any geopolitical events that may impact the sector's demand dynamics.