U.S. markets suffered a significant blow final week as renewed commerce tensions and inflation considerations rattled buyers. The S&P 500declined 8.2%, recording its worst weekly efficiency since 2020. The Dow Jones Industrial Averagenosedived over 7% and formally entered correction territory. The Nasdaq Composite sank 8.6%, closing in bear market territory.
Because of the market crash, some inverse exchange-traded funds (ETFs) supplied 25%+ returns final week. These ETFs embody Direxion Each day Semiconductor Bear 3x Shares SOXS (up 40.1%), MAX Airways -3X Inverse Leveraged ETNs JETD (up 36%), MicroSectors Journey -3x Inverse Leveraged ETN FLYD (up 33.8%), Direxion Each day S&P 500 Excessive Beta Bear 3X Shares HIBS (up 30.4%), MicroSectors U.S. Massive Banks -3 Inverse Leveraged ETN BNKD (up 28.2%) and Direxion Each day Dow Jones Web Bear 3X Shares WEBS (up 25%).
China Retaliates With New Tariffs
The selloff worsened following information that China will impose a 34% tariff on all U.S. merchandise beginning April 10, parallelling the extra 34% tariff that the Trump administration had introduced on April 2.
President Donald Trump launched and enacted a two-step tariff technique on April 2, 2025 marking the implementation of his “Liberation Day” plans. A baseline tariff of 10% was imposed on imports from numerous nations beginning April 5.
Further duties might be levied on choose nations deemed the worst offenders, taking impact on April 9. Trump said that these additional charges have been decided primarily based on each tariff and non-tariff boundaries, which have lengthy been criticized.
The transfer heightened fears of a protracted world commerce conflict, with buyers fearing commerce retaliations somewhat than negotiations (learn: Inside Trump Tariffs and Their Impact on Sector ETFs).
Buyers Search Security in Treasury Bonds
Amid the market chaos, buyers 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.
Ought to You Purchase Inverse ETFs?
Whereas markets will try to recoup losses, uncertainty associated to the commerce conflict will dominate the worldwide markets within the close to time period. So, it might be a smart resolution to brief markets a minimum of within the close to time period to earn some fast income. Following are the ETFs that might be used to brief markets.
S&P 500 – ProShares Quick S&P 500 SH
Nasdaq 100 – ProShares Quick QQQ PSQ
Dow Jones – ProShares Quick Dow 30 DOG
Russell 2000 – ProShares Quick Russell 2000 RWM
Rising Markets – Quick MSCI Rising Markets ProShares EUM
EAFE – Quick MSCI EAFE ProShares EFZ
Midcaps – ProShares Quick Midcap 400 MYY
Need key ETF information delivered straight to your inbox?
Zacks’ free Fund E-newsletter will temporary you on prime information and evaluation, in addition to top-performing ETFs, every week.
ProShares Short S&P500 (SH): ETF Research Reports
Proshares Short QQQ (PSQ): ETF Research Reports
Proshares Short Dow30 (DOG): ETF Research Reports
ProShares Short MSCI EAFE (EFZ): ETF Research Reports
Proshares Short MSCI Emerging Markets (EUM): ETF Research Reports
Proshares Short Russell2000 (RWM): 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 creator and don’t essentially replicate these of Nasdaq, Inc.
