Wall Street was downbeat last week, with the S&P 500 losing 3.1%, the Dow Jones shedding about 2.4% and the Nasdaq Composite retreating 3.5%. The S&P 500 recorded its worst week since September 2024. SPDR S&P 500 ETF Trust SPY lost 3.4% in the week. The Nasdaq officially entered correction territory — defined as a 10% decline from recent highs.
Investors largely shrugged off a weaker-than-expected February jobs report, which briefly pushed Treasury yields lower. Nonfarm payrolls increased by 151,000 in February, falling short of economists’ expectations of 170,000. The unemployment rate rose to 4.1%, adding to concerns about economic softening.
The week’s market turmoil was driven by concerns over trade policy. President Donald Trump’s tariff announcements created uncertainty, though he later exempted goods from Canada and Mexico under the USMCA until April 2. This partially reversed the original plan, but markets still struggled with a lack of long-term clarity.
“The market does not like uncertainty,” said Glen Smith, CIO at GDS Wealth Management, as quoted on CNBC. He expects a recovery from the tariff-led selloff but has warned that investors should prepare for continued market choppiness until trade uncertainties are resolved.
Treasury Secretary Scott Bessent acknowledged that the economy may be losing momentum but attributed it to a transition from the previous policies. He reassured investors that any tariff-related price increase would be a one-time adjustment rather than a trigger for lasting inflation.
Against this backdrop, below we highlight a few winning exchange-traded funds (ETFs) of last week.
iPath Series B S&P 500 VIX Short-Term Futures ETN VXX – Up 15.4%
As Wall Street experienced a crash last week, stock volatility surged. The underlying S&P 500 VIX Short-Term Futures Index Total Return offers exposure to a daily rolling long position in the first and second month VIX futures contracts and reflects views of the future direction of the VIX index at the time of expiration of the VIX futures contracts comprising the Index. The ETF charges 89 bps in fees.
First Trust Germany AlphaDEX Fund FGM – Up 11.2%
German stocks were on a winning spree last week amid plans to overhaul debt policy and hike defense spending. Alterations or exemptions to the debt brake are seen as crucial for easing fiscal policy to boost Germany’s economy and align military spending with Europe.