ETF Trends
ETF Trends

U.S. stock exchange traded funds (ETFs) started the week sharply lower after Standard & Poor’s cut its ratings outlook on U.S. debt to negative.

S&P reportedly said it’s worried U.S. policymakers may not be able to reach an agreement on reducing the debt. S&P says it sees a 1-in-3 likelihood “that we could lower our long-term rating on the U.S. within two years,” according to WSJ MarketBeat.

Equities were lower after Monday after China again raised reserve requirements for banks. SPDR S&P 500 ETF (NYSEArca: SPY) was down more than 1% in early trading. China on Sunday boosted the requirement on reserves banks must hold, for the fourth time this year. [Will Higher Rates Hit China Real Estate ETF?]

The largest ETF for gold, SPDR Gold Shares (NYSEArca: GLD), traded higher after S&P’s warning on its U.S. credit outlook. The metal ETF notched a new record high Friday.

Treasury yields rose Monday morning, pushing iShares Barclays 20+ Year Treasury Bond Fund (NYSEArca: TLT) down by nearly 1%.

In commodities markets, U.S. Oil Fund (NYSEArca: USO) was down over 1%.

SPDR S&P 500 ETF

The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.