Broad ETFs Climb as Tech, Defense Funds Face Headwinds

Major indexes headed for a fresh record as Wall Street weighed the risk of a Google breakup and investors analyzed minutes from the latest Federal Reserve meeting.

2 Updates 
Wed, October 9, 2024 At 4:00 PM EDT
DJ Shaw | Finance Reporter |

DIA, QQQ Rise as Boeing Woes Hit GCAD

The SPDR S&P 500 ETF Trust (SPY) rose 0.7% on Wednesday, with the S&P 500 reaching a new record, as investors shrugged off geopolitical concerns. The SPDR Dow Jones Industrial Average ETF Trust (DIA) gained nearly 1%, leading the major index ETFs. The Invesco QQQ Trust (QQQ) followed with a 0.8% increase.

The iShares Global Comm Services ETF (IXP) dropped 0.5% as its top holding Google’s parent company Alphabet saw its shares decline more than 2% after the Department of Justice made recommendations for a potential breakup of the tech giant.

The Gabelli Commercial Aerospace and Defense ETF (GCAD) fell 0.2% after Boeing shares tumbled another 3.5% as a machinists’ union strike continued and S&P Global Ratings issued a negative outlook for the company’s credit rating. 

 

SPY Intraday

 

Wed, October 9, 2024 At 2:30 PM EDT
Kent Thune | Research Lead |

Fixed Income Investors Get Some Relief From Fed

The bond market proxy iShares 20+ Year Treasury Bond ETF (TLT) moved off its lows after the release of the anxiously awaited FOMC minutes.

TLT was down 0.5% midday and had earlier been down 0.8%.

The Treasury bond ETF giant has fallen more than 6% since the Sept. 18 jumbo rate cut and last week's hotter-than-expected U.S. nonfarm payrolls report has elevated inflation concerns.

The bond market was watching for clues in today's FOMC press release revealing what was discussed among the committee's members.

Fixed income investors may have found what they were looking for as the Fed minutes reported that "almost all participants judged that the risks to achieving the committee's employment and inflation goals were roughly in balance."

TLT Price Chart: 1-Month

TLT Price Chart: 1 Month