Exchange traded funds (ETFs) that invest in gold and silver jumped Monday morning after Standard & Poor’s cut its outlook on U.S. debt to negative, while Treasury ETFs fell in the wake of the downgrade.
Meanwhile, ETFs that track U.S. Treasury bonds weakened after S&P said it sees a 1-in-3 chance it could lower its long-term rating on the U.S. in the near term.
The iShares Barclays 20+ Year Treasury Bond Fund (NYSEArca: TLT), which follows the long end of the yield curve, fell about 1%.
In U.S. stocks, SPDR S&P 500 ETF (NYSEArca: SPY) dropped more than 1% in recent trading.
However, the dollar strengthened against a basket of foreign currencies as PowerShares DB US Dollar Bullish Fund (NYSEArca: UUP) traded higher after the S&P bombshell.
iShares Barclays 20+ Year Treasury Bond Fund
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