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.

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 has warned 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 increase would be a one-time adjustment rather than a trigger for lasting inflation.

Best-Performing ETFs of Last Week

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.

Direxion Daily AVGO Bear 1X Shares AVS – Up 9.7%

Although Broadcom (AVGO) stock gained 8.6% on Friday as solid forecast eased demand worries for AI chips, the stock was down 4.3% for the week. As a result, the inverse version ETF on the stock gained meaningfully last week.

Global X Defense Tech ETF SHLD – Up 9.5%

The underlying Global X Defense Tech Index seeks to provide exposure to defense technology companies that are positioned to benefit from technology, services, systems and hardware that cater to the defense and military sector. The fund charges 50 bps in fees.

United States Natural Gas Fund LP UNG – Up 9.2%

The United States Natural Gas ETF LP is an exchange-traded security that is designed to track in percentage terms the movements of natural gas prices. U.S. natural gas futures surged lately, thanks to record LNG export flows and stronger demand projections.

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Global X Defense Tech ETF (SHLD): ETF Research Reports

SPDR S&P 500 ETF (SPY): ETF Research Reports

iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX): ETF Research Reports

First Trust Germany AlphaDEX ETF (FGM): ETF Research Reports

United States Natural Gas ETF (UNG): ETF Research Reports

This article originally published on Zacks Investment Research (zacks.com).

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