Index funds mirror the selloff, bond funds lose altitude too

Broad equity funds slide with the market, while bond funds get hit alongside yields.

Wednesday, July 29, 2026 · Daily Market Updates

The big index funds track the stock selloff. SPY falls 1.5% to 729.46, QQQ drops 2.0% to 661.73, DIA loses 2.2% to 515.41, IWM falls 1.6% to 288.57, and VTI slips 1.5% to 360.42.

On the fixed-income side, TLT drops 1.7% to 82.85 and LQD falls 0.6% to 106.22. HYG slips 0.2% to 79.24, while MUB edges down 0.2% to 105.77. That aligns with the move higher in longer Treasury yields.

Even after the selloff, several stock funds remain above their 200-day averages, including SPY, QQQ, DIA, IWM, and VTI. But the near-term trend is much weaker, especially for QQQ, which has an RSI of 21.8.

The message from the funds complex is straightforward: the day was not just a headline-driven swoon in individual stocks, it was broad-based across the major wrappers people use to hold the market.

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