## [# VIXY, TLT Win the Day on Recession Fears](/sections/news/fepi-smh-sink-intel-drags-down-semiconductors-tech)
# VIXY, TLT Win the Day on Recession Fears
- • News
3 Updates
[  ](/authors/kent-thune)
Fri, August 2, 2024 At 4:15 PM EDT
[Kent Thune ](/authors/kent-thune) | CFP, Senior Content Editor | [ Follow Author ](/etf/login)
## Volatility and Long Term Treasury ETFs Up Big
A soft jobs report ramped up negative sentiment today as investors bought long-term Treasury bond ETFs to hedge against a recession and bet on falling interest rates.
The [**ProShares VIX Short-Term Futures ETF (VIXY)**](/vixy), which tracks short-term market volatility, shot up more than 20% today as investors scrambled to shift assets out of equities and into recession hedges like[ **iShares 20+ Year Treasury Bond ETF (TLT)**](/tlt), up 3%.
This morning's July non-farm payrolls report was weaker than expected. Hiring slowed dramatically to 114,000 while unemployment rose to 4.3%. Treasury yields dropped sharply as rate cut expectations increased.
The bond market now predicts a 71% chance that the Fed will drop its key interest rate by 50 basis points at its next FOMC meeting in September.
[  ](/authors/dj-shaw)
Fri, August 2, 2024 At 2:24 PM EDT
[DJ Shaw ](/authors/dj-shaw) | Finance Reporter | [ Follow Author ](/etf/login)
## Tech ETFs Slump Despite Apple’s Strong Earnings; RVER Falls on Snap’s Slide
Several technology-focused ETFs declined Friday despite Apple’s strong performance, reflecting a broader sell-off in the tech sector.
The [**Fidelity MSCI Information Technology Index ETF (FTEC)**](/FTEC) fell 3.1%, while the [**Technology Select Sector SPDR ETF (XLK)**](/xlk) dropped 3.3%. This downward trend persisted even as Apple shares jumped nearly 3% following third quarter results that beat Wall Street expectations, with overall revenue rising 5% year over year.
## XLK vs SPY: 1-Month Chart
ETFs holding Snap Inc. were particularly hard hit. The [**Trenchless Fund ETF (RVER)**](/RVER) plummeted 4.4%, and the [**Global X Social Media ETF (SOCL)**](/SOCL) declined 3.6%. These drops came as Snap’s stock plunged 26% on weaker-than-expected third-quarter guidance.
Despite positive news from some companies, the overall sentiment in tech-related ETFs remained negative. DoorDash's price surged almost 8% after reporting second quarter revenue of $2.13 billion, surpassing Wall Street estimate. However, this individual stock performance wasn’t enough to lift related ETFs, with the [**Franklin Disruptive Commerce ETF (BUYZ)**](/BUYZ) and [**ProShares On-Demand ETF (OND)**](/OND) both down 3%.
[  ](/authors/kristin-myers)
Fri, August 2, 2024 At 12:18 PM EDT
[Kristin Myers ](/authors/kristin-myers) | SVP Content/EIC | [ Follow Author ](/etf/login)
## Intel Shares Slump Dragging Down FEPI, FTXL, More
Corporate earnings and a weak jobs report sent markets lower Friday. Chipmaker [Intel](/stock/INTC) missed on second quarter earnings, causing the stock to slump 28% by midday Friday. The decline in the share price dragged down ETFs with large allocations in Intel.
FEPI, the [**REX FANG & Innovation Equity Premium Income ETF**](/FEPI) slumped nearly 4% while CFCV, the [**ClearBridge Focus Value ESG ETF**](/CFCV) dropped close to 2%. Both funds have over 6% allocated to Intel.
FTXL, the [**First Trust Nasdaq Semiconductor ETF**](/FTXL) sank nearly 4.5% by midday as investors grew weary of the semiconductor trade. The fund is invested in Intel and other chipmakers, including [Nvidia](/stock/NVDA), [Texas Instruments](/stock/TXN), and [Qualcomm](/stock/QCOM).
Two of the biggest semiconductor ETFS, USD and SMH, the [**ProShares Ultra Semiconductors**](/USD) and the [**VanEck Semiconductor ETF**](/SMH), sank even more, slumping 7% and 5% respectively,
## Weak Jobs Report Sends Markets Lower
In broader markets, QQQ, the [**Invesco QQQ Trust**](/QQQ) which tracks the tech-heavy Nasdaq, dipped 2.5%. SPY, the [**SPDR S&P 500 ETF Trust**](/SPY) also dropped, slipping just over 2%. DIA, the [**SPDR Dow Jones Industrial Average ETF Trust**](/DIA) edged close to 2% lower.
The fall in markets came after the Labor Department reported the U.S. economy had only added 114,000 jobs in July, far lower than the 185,000 jobs economists polled by Dow Jones had expected. The figure is a big cool-down from the June figures, when 206,000 jobs were added.
The weaker-than-anticipated jobs numbers didn't boost investors' hopes of a potential rate cut but instead, stoked recession fears.
According to the [CME Fed Watch Tool](https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html), investors are now forecasting a 75% chance of a 50 basis point (bps) rate cut in September—double the previous forecasts which called for just a 25 (bps) cut at the next Fed policy meeting.
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