Markets Broadly Dip; UTES, NETZ Rise on Energy Deals

Broad market ETFs like SPY and QQQ fell after yesterday's post-rate cut surge, while utilities jumped.

SPDR S&P 500 ETF Trust (SPY) slid 0.2% while the SPDR Dow Jones Industrial Average ETF Trust (DIA) added 0.1%. QQQ, the tech-heavy Invesco QQQ Trust also fell 0.2%. 

The Virtus Reaves Utilities ETF (UTES) rose nearly 5% after Constellation Energy shares surged more than 22%. The company announced plans to restart the Three Mile Island nuclear plant, with Microsoft set to purchase electricity from the plant in a 20-year agreement.

The Engine No. 1 Transform Climate ETF (NETZ) climbed 0.8% following Vistra’s 17% jump. The Texas-based power company, also a holding in UTES, plans to acquire the remaining 15% stake in its subsidiary Vistra Vision for about $3.2 billion in cash.

The ​​REX FANG & Innovation Equity Premium Income ETF (FEPI) inched up 0.1% on news that Qualcomm approached Intel about a potential takeover. Intel shares rose 8% on the report, which suggested one of the largest technology mergers ever if realized.

The Monarch Blue Chips Core ETF (MBCC) gained 0.2% after Nike jumped 6.7%. The apparel giant announced a CEO change, with veteran Elliott Hill set to replace John Donahoe in October. Nike shares has been down about 25% for the year prior to the announcement.

Broad market ETFs were on the retreat Friday after the Fed's rate cut earlier in the week. 

SPY, the SPDR S&P 500 ETF Trust slid more than half a percentage point. QQQ, the tech-heavy Invesco QQQ Trust was also in the red, dropping 0.8%. 

DIA, the SPDR Dow Jones Industrial Average ETF Trust struggled the least, sliding a quarter of a percentage point. 

Tech-heavy ETFs struggled dipped further than the broad market indexes. MAGS, the Roundhill Magnificent Seven ETF, fell sinking roughly 0.6% while XLK, the Technology Select Sector SPDR Fund lost a full percentage point.

XLY, the Consumer Discretionary Select Sector SPDR Fund, also sank due to large holdings of Amazon and Tesla. The fund notched a roughly 0.8% loss.

Investors piled back into defensive trades as the rate cut excitement faded. XLU, the Utilities Select Sector SPDR Fund led markets on Friday, rising 1.75%. Gold, silver and crypto ETFs also rose.