Market Update: Key ETFs Decline Amid Middle East Tensions and Financial Sector Movements
11 months ago

The broad market exchange-traded fund SPDR S&P 500 ETF Trust ($SPY) was down 0.2%, and the actively traded Invesco QQQ Trust ($QQQ) also fell by 0.2% in Wednesday's premarket activity, as investors exercised caution due to escalating tensions in the Middle East. This cautious sentiment was reflected in the overall US stock futures, which also showed declines, with S&P 500 Index futures decreasing by 0.2%, Dow Jones Industrial Average futures diminishing by 0.2%, and Nasdaq futures sliding by 0.2% ahead of the regular trading session. Mortgage applications in the US fell by 1.3% for the week ending September 27, as mortgage rates edged higher.

Refinancing applications dropped 3%, whereas purchase applications saw a minor uptick of 1%, according to data from the Mortgage Bankers Association released on Wednesday. In an encouraging sign for the labor market, ADP's monthly measure of private payrolls revealed a significant increase of 143,000 jobs in September, surpassing expectations set by Bloomberg, which anticipated an increase of 125,000 jobs by 7:40 am ET. Looking ahead, the weekly EIA domestic petroleum inventories report is scheduled for 10:30 am ET. Federal Reserve Bank of Cleveland President Beth Hammack is slated to speak at 9 am ET, while St.

Louis Fed President Alberto Musalem is set to address the market at 10:05 am ET. Fed Governor Michelle Bowman is scheduled to provide insights at 11 am ET, followed by Richmond Fed President Thomas Barkin at 12:15 pm ET. In cryptocurrency markets, Bitcoin fell by 4%, and the cryptocurrency fund ProShares Bitcoin Strategy ETF ($BITO) experienced a 1% decrease. In the Technology sector, the Technology Select Sector SPDR Fund (XLK) saw a retreat of 0.3%, while the iShares US Technology ETF ($IYW) remained unchanged.

Conversely, the iShares Expanded Tech Sector ETF ($IGM.US) dropped by 4%. Among semiconductor ETFs, the SPDR S&P Semiconductor ETF ($XSD) declined by 0.7%, while the iShares Semiconductor ETF ($SOXX) managed to rise by 0.3%. AgEagle Aerial Systems ($UAVS) witnessed its shares plummet by 10% in recent Wednesday premarket activity following the company's announcement late Tuesday about successfully closing a public offering of units, which raised total gross proceeds of $6.5 million. In the Health Care sector, the Health Care Select Sector SPDR Fund ($XLV) retracted 0.3%.

Meanwhile, the Vanguard Health Care Index Fund ($VHT) and the iShares US Healthcare ETF ($IYH) remained stable, while the iShares Biotechnology ETF ($IBB) saw no activity. ModivCare ($MODV) stock surged by more than 21% in premarket trading after announcing that it collected all of the roughly $60 million in contract receivables that were previously reported as delayed. In the Energy sector, the iShares US Energy ETF ($IYE) remained inactive, whereas the Energy Select Sector SPDR Fund ($XLE) advanced by 1.7%.

Crescent Energy ($CRGY) shares gained 7.4% ahead of Wednesday's opening bell after the S&P Dow Jones Indices declared that the company would be added to the S&P SmallCap 600 effective pre-bell on Friday. In Consumer sector movements, the Consumer Staples Select Sector SPDR Fund ($XLP) declined by 0.2%, while the Vanguard Consumer Staples Fund ($VDC) was inactive.

The iShares US Consumer Staples ETF ($IYK) remained flat, and the Consumer Discretionary Select Sector SPDR Fund ($XLY) decreased by 0.7%. The VanEck Retail ETF ($RTH) remained inactive, while the SPDR S&P Retail ETF ($XRT) saw a decline of 0.8%. Lamb Weston Holdings ($LW) shares fell by 4.8% before the bell following the announcement of a restructuring plan, which includes a global workforce reduction of 4% and permanent closure of its manufacturing facility in Washington. In the Industrial sector, the Industrial Select Sector SPDR Fund ($XLI) dropped by 0.4%, with the Vanguard Industrials Index Fund ($VIS) and the iShares US Industrials ETF ($IYJ) remaining inactive. Alaska Air Group ($ALK) shares experienced a slight drop of 0.02% before the market opened after the company revealed that it priced a private offering of $625 million in senior secured notes due 2029 at an interest rate of 5.021%, and another $625 million at 5.308% due 2031, along with a $750 million senior secured term loan B due 2031. In the Financial sector, the Financial Select Sector SPDR Fund (XLF) remained flat.

The Direxion Daily Financial Bull 3X Shares ($FAS.US) decreased by 1.1%, while the Direxion Daily Financial Bear 3X Shares ($FAZ) increased by 1%. F&G Annuities & Life ($FG) shares were stable pre-bell on Wednesday after the company disclosed that it priced a $500 million public offering of 6.250% senior notes due 2034. In commodities, the front-month US West Texas Intermediate crude oil price rose by 3.1% to $72.04 per barrel on the New York Mercantile Exchange, with natural gas gaining 2.4% to $3.00 per 1 million British Thermal Units.

The United States Oil Fund (USO) climbed 2.3%, while the United States Natural Gas Fund (UNG) rose by 2%. Gold futures for December delivery fell by 0.8% to $2,668.45 per ounce on the Comex, while silver futures dipped by 0.2% to $31.69 per ounce. SPDR Gold Shares ($GLD) dropped by 0.4%, whereas iShares Silver Trust ($SLV) experienced a gain of 0.4%..

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