U.S. markets stumbled massively final week as renewed commerce tensions and inflation issues rattled traders. The S&P 500 declined 8.2%, recording its worst weekly efficiency since 2020. The Dow Jones Industrial Common nosedived over 7% and formally getting into correction territory. The Nasdaq Composite sank 8.6%, closing in bear market territory.
China Retaliates with New Tariffs
The selloff worsened following information that China will impose a 34% tariff on all US merchandise beginning April 10, parallelling the extra 34% tariff the Trump administration had introduced on Apr. 2, 2025. The transfer heightened fears of a chronic world commerce conflict, with traders fearing commerce retaliations slightly than negotiations.
Buyers Search Security in Treasury Bonds
Amid the market chaos, traders sought refuge in authorities bonds. The ten-year Treasury yielddropped to three.9%, approaching its lowest degree since October, reflecting rising concern over financial uncertainty.
Wining ETFs of the Week
Towards this backdrop, under we spotlight a couple of successful leveraged exchange-traded funds (ETFs) of final week.
2x Lengthy VIX Futures ETF UVIX – Up 95.8%
As a result of inventory market chaos, volatility spiked. Barclays iPath Sequence B S P 500 VIX Brief Time period Futures ETN Sequence B VXX jumped 37.7% over the previous week. The Lengthy VIX Futures Index expresses the each day efficiency of a theoretical portfolio of first and second month VIX futures contracts which might be rolled each day. The expense ratio of the ETF is 1.77% yearly.
Direxion Each day Semiconductor Bear 3x Shares SOXS – Up 58.1%
The underlying ICE Semiconductor Index measures the efficiency of the semiconductor sub-sector of the U.S. fairness market. The expense ratio of the ETF is 1.03% yearly.
MicroSectors U.S. Huge Oil -3 Inverse Leveraged ETN NRGD – Up 55.9%
As a result of recessionary fears, Huge Oil shares slumped. The underlying Solactive MicroSectors U.S. Huge Oil Index is an equal-dollar weighted index that gives publicity to the ten largest U.S. vitality and oil corporations. The fund costs 95 bps in charges.
MAX Airways -3X Inverse Leveraged ETNs JETD – Up 50.2%
Airways shares additionally slumped resulting from fears of a worldwide slowdown. The underlying Prime Airways Index contains shares of U.S.-listed corporations which have operations regarding the airline {industry}, together with airways and plane and plane elements producers, and corporations engaged within the companies of air freight and logistics, plane leasing and airline and airport operations. The fund costs 95 bps in charges.
Direxion Each day S&P Biotech Bear 3x Shares LABD – Up 44.6%
As a result of retrenchment in risk-on sentiment, high-growth biotech shares took a beating. The S&P Biotechnology Choose Trade Index is designed to measure the efficiency of a sub-industry or group of sub-industries decided based mostly on the International Trade Classification Requirements (GICS). The fund costs 110 bps in charges.
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iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.
