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Tickers in this Article: VXX, XLF
Markets took a steep tumble today, as investors left for the weekend feeling uneasy about the budget talks in Washington. After several back and forth talks between the President, House Speaker John Boehner, in a surprise move,abandoned his plans to bring his Plan B budget proposal to a vote, though he assured the public that he hasn't given up on negotiations with the President. And with Congress disbanded until after Christmas, Washington now has even fewer days to concoct some plan to avoid the economy tipping into a recession.

Global Market Overview:Congress Spooks Markets Ahead of Holidays

All three major U.S. equity indexes tumbled into negative territory today following a gloomy day in budget talks in Washington. Tech-heavy Nasdaq came at the bottom of the barrel, shedding 0.96% duing the session.TheS&P 500 dropped 0.94%,whiletheDow Jones Industrial Average fell 0.91%. European markets were mostly lower amid U.S. fiscal cliff drama. In Asia, equities were also lower with Japan's Nikkei Stock Average slipping 1%.

Bond ETF Roundup

U.S. Treasury prices rallied today after bond investors remained pessimistic about Washington coming to a viable fiscal cliff agreement. Yields on 10-year notes fell 4 basis points, while 30-year bond yields dropped more than 5 basis points.

Commodity ETF Roundup

After several days of posting steep losses, precious metals finally gained traction today on sour budget talks. Gold and silver futures rallied 0.66% and 1.12%, respectively. Meanwhile, energy futures turned lower, though prices for soybeans and coffee surged.

ETF Chart Of The Day #1:VXX

The Barclays iPath S&P 500 VIX Short-Term Futures ETN was one of the best performers today, gaining a whopping 6.83% during the session. Following Boehner's statement, the CBOE Volatility Index (VIX) made a reversal, climbing toward 18. VXX gapped significantly higher at the open, only to slide sideways for the rest of the day. The fund settled at $32.54 a share.

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ETF Chart Of The Day #2:XLF

The State Street Financial Select Sector SPDR ETF was one of the worst performers today, shedding 1.80% during the session. Led by a sour performance by financial shares, this ETF gapped significantly lower at the open, only to slide sideways for the remainder of the session. XLF eventually settled at $16.40 a share.

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ETF Fun Fact Of The Day

The best performing themed strategy from the trailing 13-week period is ourRisk On ETFdb Portfolio; this strategy is up an impressive 5.18%.

Disclosure: No positions at time of writing.

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