US Credit Rating Cut Triggers Surge In Treasury Yields: 7 ETFs Experience Wild Swings
Portfolio Pulse from Piero Cingari
US Treasury yields surged due to Fitch's downgrade of the US sovereign credit rating and elevated issuance plans. The downgrade was due to concerns over fiscal deterioration, growing government debt, and governance erosion. The Treasury Department plans to issue $103 billion in its quarterly refund next week. Seven ETFs experienced significant volatility, including iShares 20+ Year Treasury Bond ETF (TLT), ProShares UltraPro QQQ (TQQQ), VanEck Semiconductors ETF (SMH), Invesco Solar ETF (TAN), ProShares Trust Ultra VIX Short Term Futures ETF (UVXY), Direxion Daily Gold Miners Index Bull 2X Shares (NUGT), and Global X Robotics & Artificial Intelligence ETF (BOTZ).
August 04, 2023 | 12:10 pm
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NEGATIVE IMPACT
Global X Robotics & Artificial Intelligence ETF dropped 3.6% on Wednesday.
The ETF's drop is directly linked to the surge in US Treasury yields, which is a result of the US credit rating downgrade and elevated issuance plans.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Direxion Daily Gold Miners Index Bull 2X Shares fell 6.2% on Wednesday.
The ETF's fall is directly linked to the surge in US Treasury yields, which is a result of the US credit rating downgrade and elevated issuance plans.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
VanEck Semiconductors ETF fell 3.7%, recording its worst session of the year.
The ETF's fall is directly linked to the surge in US Treasury yields, which is a result of the US credit rating downgrade and elevated issuance plans.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Invesco Solar ETF tumbled 5.7%, on track for its largest loss since mid-June 2022.
The ETF's tumble is directly linked to the surge in US Treasury yields, which is a result of the US credit rating downgrade and elevated issuance plans.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
iShares 20+ Year Treasury Bond ETF declined 1% on Wednesday.
The ETF's decline is directly linked to the surge in US Treasury yields, which is a result of the US credit rating downgrade and elevated issuance plans.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
ProShares UltraPro QQQ experienced a 6.8% drop for the session.
The ETF's drop is directly linked to the surge in US Treasury yields, which is a result of the US credit rating downgrade and elevated issuance plans.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
ProShares Trust Ultra VIX Short Term Futures ETF skyrocketed 17%.
The ETF's surge is directly linked to the surge in US Treasury yields, which is a result of the US credit rating downgrade and elevated issuance plans.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100