SPY Gains, VIXY Slides to End Volatile Week

The Invesco S&P 500 Equal Weight Communication Services ETF (RSPC) rose 0.7% and Invesco Dynamic Leisure and Entertainment ETF (PEJ) gained 0.6% following Paramount Global’s announcement of workforce cuts and better-than-expected quarterly earnings. Paramount’s stock climbed nearly 3% despite missing revenue forecasts.

Gaming ETFs showed mixed performance after Take-Two Interactive Software reiterated its full-year bookings and earnings guidance. Roundhill Video Games ETF (NERD) rose 0.8%, while Global X Video Games & Esports ETF (HERO) dipped 0.5%.

The broader market continued its recovery from Monday’s selloff, with the SPDR S&P 500 ETF Trust (SPY) trading 0.4% higher. The S&P 500 index inched upward, nearing a reversal of its weekly decline.

Volatility declined, as evidenced by the 13% drop in the ProShares VIX Short-Term Futures ETF (VIXY), which surged during Monday’s volatile session.

Markets struggled Friday to finish the week higher after a volatile rollercoaster ride that began with a global selloff triggered by recession fears. 

SPY, the SPDR S&P 500 ETF Trust reversed early declines and was 0.2% higher in midmorning trading. DIA, the SPDR Dow Jones Industrial Average ETF Trust and QQQ, the Invesco QQQ Trust also changed direction to eke out small gains.

While losses were found all around the market, some of the biggest losers were leveraged ETFs covering the semiconductor/AI trade, according to etf.com data,

AMDL, the GraniteShares 2x Long AMD Daily ETF sank 4.1% while AIBD, the Direxion Daily AI And Big Data Bear 2X Shares dropped nearly 8%. SOXL, the Direxion Daily Semiconductor Bull 3X Shares dropped by roughly 2.5%

Broad semiconductor ETFs SHOC and SOXX, the Strive U.S. Semiconductor ETF and iShares Semiconductor ETF climbed from their lows, while still being down around 1%. 

Eli Lilly Earnings Still Boosting Healthcare

A blowout earnings report from pharmaceutical company Eli Lilly continued to provide support for healthcare ETFs, some of Friday's biggest winners. LLYX, the Defiance Daily Target 2X Long LLY ETF jumped 13% as investors turned their attention away from tech and into healthcare on blockbuster sales of drugs for weight loss. 

XLV, the Health Care Select Sector SPDR Fund inched 0.6% higher, boosted by a more than 11% allocation to Eli Lilly. OZEM, the Roundhill GLP-1 And Weight Loss ETF jumped 2.5% as other pharmaceutical companies manufacturing drugs consumers use for weight loss benefited. 

IHE, the IShares U.S. Pharmaceuticals ETF notched a 1.4% gain in trading Friday.

The iShares Bitcoin Trust (IBIT) added 1.3%