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 the 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.
Weak Jobs Report Adds to Concerns
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.
Tariff Uncertainty Weighs on Markets
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 warns that investors should prepare for continued market choppiness until trade uncertainties are resolved.
Treasury Secretary’s Take on Economic Outlook
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 increases would be a one-time adjustment rather than a trigger for lasting inflation.
Winning Leveraged ETFs of Last Week
Below we highlight a few winning top-performing leveraged exchange-traded funds (ETFs) of last week.
Gold Miners – MicroSectors Gold Miners 3X Leveraged ETN GDXU – Up 14.8%
Gold bullion ETF GLD gained over 1.2% last week. Since mining stocks act as leveraged plays of the underlying metal, gold mining stocks surged. VanEck Gold Miners ETF GDX advanced 3.1% last week.
China – Direxion Daily CSI China Internet Index Bull 2x Shares CWEB – Up 12.1%
The DeepSeek Buzz and policy easing are likely to boost China tech stocks and ETFs. Most recently, Alibaba Group Holding BABA announced that it launched the QwQ-32B model, an AI system that rivals DeepSeek but requires only a fraction of the data. All these developments boosted China tech stocks (read: Alibaba's Stock Surges on AI Breakthrough: ETFs in Focus).
Europe – Direxion Daily FTSE Europe Bull 3x Shares EURL – Up 10.6%
Earnings momentum is shifting away from the United States and toward Europe and parts of Asia. Analysts have been revising their 2025 earnings growth estimates downward for the S&P 500 since mid-January, according to data from Bloomberg Intelligence. In contrast, earnings estimates for Europe have been raised. Plus, the ECB has been on a steady policy easing mode, which is a tailwind for Eurozone stocks (read: 5 ETF Picks for March).
Homebuilding – Direxion Daily Homebuilders & Supplies Bull 3X Shares NAIL – Up 5.1%
Homebuilding stocks gained last week, probably due to the decline in treasury bond yields. iShares US Home Construction ETF ITB, too, gained 0.8%.
Mexico – Direxion Daily MSCI Mexico Bull 3X Shares MEXX – Up 4.8%
Although Trump said on March 3 that 25% tariffs on goods from Mexico and Canada would take effect on March 4, he soon delayed the auto tariffs on Mexico and Canada. This move probably helped Mexico stocks gain higher last week.
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SPDR Gold Shares (GLD): ETF Research Reports
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares U.S. Home Construction ETF (ITB): ETF Research Reports
Alibaba Group Holding Limited (BABA): Free Stock Analysis Report
VanEck Gold Miners ETF (GDX): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).
