Wall Street endured a steep sell-off today, as another round of disappointing economic reports and concerns over when the Fed will begin tapering weighed heavily on the markets. In economic news, ADP and Moody’s reported only 135,000 new private-sector jobs in May, well bellow the expected 170,000. Meanwhile, the Institute for Supply Management’s non-manufacturing purchasing managers’ index came in slightly higher, though the employment index missed forecasts. Tomorrow, investors will be keeping a close eye on the Labor Department’s employment report .

Global Market Overview: VXX Spikes On Fed Concerns, XLB Tumbles

Following today’s disappointing economic reports, all three major U.S. equity indexes tumbled into negative territory. The Dow Jones Industrial Average ETF fell 1.52% after its underlying index slipped below the 15,000 level. The S&P 500 ETF shed 1.44%, while the tech-heavy Nasdaq ETF lost 1.23%.

In Europe, markets were broadly lower following a disappointing eurozone retail sales report. The Stoxx Europe 600 shed 1.49%. Meanwhile, Asian equities fell sharply after Japan’s Prime Minister Shinzo “Abenomics” speech underwhelmed investors; Japan’s Nikkei Stock Average tumbled 3.8%, while China’s Shanghai Composite Index slipped 0.07%.

Bond ETF Roundup

U.S. Treasury prices rose today as investors flocked to the safe-haven following disappointing U.S. economic reports. Yields on 10-year notes fell 6 basis points, while 30-year bond and 5-year note yields fell 6 and 4 basis points, respectively .

Commodity Roundup

Crude oil futures rallied to a one-week high today U.S. Energy Information Administration and the American Petroleum Institute reported declines in U.S. crude supplies. In other energy trading, gasoline and natural gas futures were slightly higher. Meanwhile, gold ended essentially flat after a brief morning rally.

ETF Chart Of The Day #1:

The Materials Select Sector SPDR ETF was one of the worst performers today, shedding 2.22% during the session. Materials shares were among today’s worst performers, forcing this ETF to gap lower at the open. XLB traded lower throughout the day, eventually settling at $38.55 a share .

Click To Enlarge


ETF Chart Of The Day #2:

The S&P 500 VIX Short-Term Futures ETN was one of the best performers today, gaining 4.24% during the session. As the CBOE Volatility Index (VIX) jumped above 17 on Fed concerns, this ETF gapped slightly higher at the open. VXX traded higher throughout the day, eventually settling at $20.16 a share .

Click To Enlarge


ETF Fun Fact Of The Day

The best-performing regional strategy over the trailing 1-year period has been the Euro Free Europe Portfolio, which has gained 27.99%.

Disclosure: No positions at time of writing.

Related Articles
  1. Investing

    The ABCs of Bond ETF Distributions

    How do bond exchange traded fund (ETF) distributions work? It’s a question I get a lot. First, let’s explain what we mean by distributions.
  2. Investing Basics

    Top Tips for Diversifying with Exotic Currencies

    Is there an opportunity in exotic currencies right now, or are you safer sticking to the major ones?
  3. Mutual Funds & ETFs

    The 3 Biggest Mutual Fund Companies in the US

    Compare and contrast the rise of America's big three institutional asset managers: BlackRock Funds, The Vanguard Group and State Street Global Advisors.
  4. Professionals

    5 Top-Rated Funds for Your Retirement Portfolio

    Mutual funds are a good choice for emotional investors. Here are five popular funds to consider.
  5. Stock Analysis

    The 6 Biggest Russian Energy Companies

    Learn about the top energy companies in Russia, a country that holds some of the largest reserves of oil, natural gas and coal in the world.
  6. Mutual Funds & ETFs

    The 4 Best Buy-and-Hold ETFs

    Explore detailed analyses of the top buy-and-hold exchange traded funds, and learn about their characteristics, statistics and suitability.
  7. Chart Advisor

    Bumpy Roads Ahead In Transportation

    Investors are keeping an eye on the transportation industry. We'll take a look at the trend direction and how to trade it.
  8. Investing

    How ETFs May Save You Thousands

    Being vigilant about the amount you pay and what you get for is important, but adding ETFs into the investment mix fits well with a value-seeking nature.
  9. Mutual Funds & ETFs

    3 Fixed Income ETFs in the Mining Sector

    Learn about the top three metals and mining exchange-traded funds (ETFs), and explore analyses of their characteristics and how investors can benefit from these ETFs.
  10. Chart Advisor

    Agriculture Commodities Are In The Bear's Sights

    Agriculture stocks have experienced strong moves higher over recent weeks, but chart patterns on sugar, corn and wheat are suggesting the moves could be short lived.
  1. Can mutual funds invest in IPOs?

    Mutual funds can invest in initial public offerings (IPOS). However, most mutual funds have bylaws that prevent them from ... Read Full Answer >>
  2. Does index trading increase market vulnerability?

    The rise of index trading may increase the overall vulnerability of the stock market due to increased correlations between ... Read Full Answer >>
  3. What does a high turnover ratio signify for an investment fund?

    If an investment fund has a high turnover ratio, it indicates it replaces most or all of its holdings over a one-year period. ... Read Full Answer >>
  4. What is the difference between passive and active asset management?

    Asset management utilizes two main investment strategies that can be used to generate returns: active asset management and ... Read Full Answer >>
  5. Is there a situation in which wash trading is legal?

    Wash trading, the intentional practice of manipulating a stock's activity level to deceive other investors, is not a legal ... Read Full Answer >>
  6. If I believe retail sector companies are overvalued how can I profit from a fall ...

    For an investor who believes that retail sector companies are overvalued, there are three basic strategies he can employ ... Read Full Answer >>

You May Also Like

Trading Center
You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!