PIMCO 25+ Year Zero Coupon U.S. Treasury Index ETF (NYSE: ZROZ) surged 8.8% in 4 days, outperforming SPDR S&P 500 ETF Trust (NYSE: SPY) by a significant margin due to weak U.S. jobs data.

An ETF focusing on long-duration Treasury bonds has experienced a remarkable 8.8% surge within just four trading sessions, comparable to previous rallies seen during the 2020 pandemic and the deflationary scare of August 2024. Specifically, the PIMCO 25+ Year Zero Coupon U.S. Treasury Index ETF (NYSE: ZROZ) saw this surge between Sept. 3 and 8, driven by a significant drop in Treasury yields following a weak U.S. jobs report, leading to expectations of imminent Federal Reserve rate cuts. On the day of the jobs report, Sept. 6, the fund spiked by 2.7%, marking one of its most substantial daily gains in 2025. In contrast, the SPDR S&P 500 ETF Trust (NYSE: SPY) only increased by 1.3% during the same period, highlighting an unusual and clear outperformance by bonds over equities, a trend not frequently seen since the pandemic outbreak. The unexpected jobs report outcomes significantly shifted market perceptions, with just 22,000 jobs added in August. More details can be found on Benzinga.com.