Nasdaq, S&P 500 and Dow ETFs crumble following Powell’s hawkish rhetoric


Benchmark exchange traded funds that track the Nasdaq Composite (COMP.IND), S&P 500 (SP500) and Dow Jones (DJI) sank in Friday’s intraday action after the Federal Reserve Chair Jerome Powell delivered a hawkish statement at the Jackson Hole Economic Symposium.

The Nasdaq is leading the plunge, falling 2.5% to reach the 12,320 level. Following suit, the QQQ Trust (NASDAQ:QQQ), which tracks the 100 largest non-financial companies, is also lower by 2.7%. Falling even harder is the 3X leveraged version of the Nasdaq 100 in the ProShares UltraPro QQQ (NASDAQ:TQQQ), which is down 8.2%.

Meanwhile, the S&P 500 has declined 2% down to reach 4,116. Given this movement, the world’s three largest exchange traded funds that track the index have declined in a parallel fashion. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY), iShares Core S&P 500 ETF (IVV) and the Vanguard S&P 500 ETF (NYSEARCA:VOO) each traded lower by 2.1%.

The Dow has held up better than the other major averages, but it still showed a decline of 1.7%, dropping a little over 575 points. The SPDR Dow Jones Industrial Average ETF (DIA), which tracks the index, slumped 1.8%.

Powell’s hawkish rhetoric spooked markets as he gave no indication of when he thought it would be appropriate to slow the pace of rate increases.

See more information surrounding Friday’s stock market selloff.

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