ETFs Tumble as Weak Jobs Report Sparks Tech Selloff

The SPDR S&P 500 ETF Trust (SPY) fell 1.7% Friday, marking the S&P 500’s worst week since March 2023.

 Investors retreated from risk assets following a weak August jobs report, particularly abandoning leading technology stocks. 

Major index ETFs felt the impact, with the SPDR Dow Jones Industrial Average ETF Trust (DIA) closing 1% loser and the tech-heavy Invesco QQQ Trust (QQQ) dropping 2.6%, marking the Nasdaq's worst week since 2022. 

The iShares Future AI and Tech ETF (ARTY) declined 2.4% after Super Micro Computer shares plunged 6.6%. JPMorgan downgraded the AI server producer to neutral, citing regulatory compliance uncertainties and a delayed 10-K filing. 

Autonomous vehicle-focused ETFs also suffered. The Direxion Daily Electric and Autonomous Vehicles Bull 2X Shares (EVAV) fell 3.8% following an 8% drop in Mobileye’s stock. Reports that Intel is considering options for its stake in the autonomous driving tech company contributed to the decline.

Market volatility roared today with risky investments like chip stocks falling and safer bets including treasuries jumping, following Broadcom's weak outlook and a report showing hiring has slowed.

The ProShares VIX Short-Term Futures ETF (VIXY), which rises with increasing S&P 500 volatility, gained 10% this afternoon. Higher-risk ETFs lost ground—the VanEck Semiconductor ETF (SMH) lost 4.5%—while the iShares 20+ Year Treasury Bond ETF (TLT) added 0.2%. 

Bond funds have been rising since the end of last week. Today the iShares Core U.S. Aggregate Bond ETF (AGG) and the Vanguard Total Bond Market ETF (BND) both added 0.1%.

Stock market ETFs headed for weekly declines. The Vanguard S&P 500 ETF (VOO) lost 1.5% while the Nasdaq-tracking Invesco QQQ Trust (QQQ) slid 2.7%.

Bitcoin's slumping price pushed crypto ETFs lower still. The iShares Bitcoin Trust (IBIT) lost 3.8% and has been on a steady decline for the past two weeks. The fund has lost 21% since its January launch.

Semiconductor and tech ETFs slipped Friday morning after a weaker-than-expected jobs report cut investors' appetites for riskier, high-growth trades. 

SOXX, the iShares Semiconductor ETF, slid 4.2%, dragged down by sell-offs in Broadcom, which fell 10%. Chipmakers Nvidia, Advanced Micro Devices, and Taiwan Semiconductor also slid. 

SHOC, the Strive U.S. Semiconductor ETF lost 3.4%. Broadcom only represents 5% of the fund, so it wasn't hit as hard as SOXX.

MAGS, the Roundhill Magnificent Seven ETF, a fund for the seven biggest tech names that once were the market's biggest leaders, dropped 3%. QQQ, the tech-heavy Invesco QQQ Trust also fell, dipping 2.5%.

Broad markets also fell as weaker jobs numbers raised concerns about slowing economic growth. SPY, the SPDR S&P 500 ETF Trust dropped 2.5% while DIA, the SPDR Dow Jones Industrial Average ETF Trust declined nearly 1%.