The S&P 500 was on track for a 3% weekly pullback in afternoon trading Friday as Europe’s debt crisis boils over again. A dismal May employment report knocked equity ETFs hard Friday on worries the job market is heading south again.
The Dow and Nasdaq Composite joined the S&P 500 in falling below their 200-day exponential moving averages on Friday. The Dow was poised for a 2.5% weekly decline while the Nasdaq lost 3%.
Gold ETFs rallied Friday along with bullion prices, which rose back above $1,600 an ounce on talk the Federal Reserve may step in with more stimulus to support the economy.
Gold miner ETFs have been outperforming gold prices since mid-May, fueling speculation the beaten-down sector is finally on the mend. Earlier this week, Tom Lydon told Chuck Jaffe on his MoneyLife show that valuations and profit margins in gold miners are very compelling after the protracted sell-off.
Gold miner ETFs were the best-performing sector ETFs for the week as well.
Treasury ETFs also led the top gainers this week on the safety trade. Yields on the 10-year note dropped as far as 1.44% on Friday to record lows.