Energy Surges as Global Equities Face Broad Selloff

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Macro Overview

Global equities faced broad downward pressure on Thursday, with the S&P 500 (IVV) declining 1.54% and Developed Markets ex-U.S. (EFA) shedding 1.57%. Emerging Markets (EEM) served as the primary outlier on the downside, retreating 3.20% as a strengthening U.S. dollar weighed heavily on developing economies. Meanwhile, Broad Based Commodities (DJP) surged 2.39%, driven by an acute spike in global energy prices resulting from renewed supply chain disruptions. In the fixed income space, the U.S. Aggregate Bond Index (AGG) slipped 0.37% as intermediate and long-term yields ticked higher across the curve.

U.S. Size & Style

Across the domestic equity capitalization spectrum, smaller and growth-oriented cohorts experienced the steepest 1-Day drawdowns amid shifting interest rate expectations. The Mid Cap Growth Index (IJK) led the declines by falling 2.57%, closely followed by the Small Cap Growth Index (IJT) with a 2.28% loss. Value orientations provided a slight defensive buffer against the broad market selloff, evidenced by the Large Cap Value Index (IVE) outperforming its growth counterpart by 37 basis points. From a longer-term perspective, the Large Cap Growth Index (IVW) continues to hold the strongest 1-Year return at 25.66%, despite trading firmly in oversold territory with an RSI of 40.91.

Name (Ticker) 1-Day % Change 1 Month 3 Month YTD 1 Year
Large Value (IVE) -1.33% -3.23% -0.35% -0.08% 15.06%
Large Cap (IVV) -1.54% -2.25% -2.02% -2.33% 20.67%
Large Growth (IVW) -1.70% -1.34% -3.57% -4.36% 25.66%
Mid Value (IJJ) -1.55% -7.20% -2.03% -0.52% 12.39%
Mid Cap (IJH) -2.00% -5.02% 0.24% 1.52% 16.93%
Mid Growth (IJK) -2.57% -2.97% 2.23% 3.36% 21.43%
Small Value (IJS) -1.62% -5.98% -0.37% 2.08% 21.04%
Small Cap (IJR) -1.86% -5.56% -1.09% 1.68% 19.02%
Small Growth (IJT) -2.28% -5.17% -1.91% 1.15% 16.96%

U.S. Sectors & Industries

Defensive and inflation-sensitive segments of the market exhibited notable relative strength, with the Energy Sector (XLE) gaining 0.93% following a sharp rally in underlying crude prices. The Utilities Sector (XLU) also closed in positive territory, advancing 0.71% as investors rotated toward yield-generating equities. Conversely, cyclical segments tied to economic expansion bore the brunt of the daily selling pressure. The Industrials Sector (XLI) dropped 2.51%, while the Consumer Discretionary Sector (XLY) fell 2.30% to reach a technically oversold RSI level of 30.80.

Name (Ticker) 1-Day % Change 1 Month 3 Month YTD 1 Year
Energy (XLE) 0.93% 6.54% 27.43% 28.63% 35.42%
Utilities (XLU) 0.71% 2.76% 9.38% 8.92% 23.93%
Materials (XLB) -0.32% -5.96% 10.59% 9.55% 19.30%
Consumer Staples (XLP) -0.40% -5.56% 6.94% 8.46% 8.60%
Real Estate (XLRE) -0.64% -1.70% 4.53% 4.44% 5.08%
Communication Services (XLC) -1.48% 0.55% -0.78% -2.08% 20.48%
Financials (XLF) -1.63% -5.53% -10.83% -10.85% 3.82%
Health Care (XLV) -1.76% -3.74% -2.12% -3.00% 5.66%
Technology (XLK) -1.84% -0.98% -3.93% -4.26% 31.03%
Consumer Discretionary (XLY) -2.30% -3.97% -7.42% -6.61% 13.87%
Industrials (XLI) -2.51% -4.35% 5.78% 6.52% 28.73%

Global Thematic

Performance within the global thematic landscape demonstrated a sharp divergence between natural resource equities and long-duration innovation themes. The Agribusiness Index (MOO) led the daily advancers with a 1.17% gain, benefiting from upward pressure in underlying agricultural commodities. On the opposite end of the spectrum, the Genomic Revolution Index (ARKG) plummeted 5.42% as risk appetite for non-profitable healthcare technology waned. Base metal miners also suffered severe drawdowns, highlighted by the Nickel Miners Index (NIKL) falling 4.20% amid deteriorating short-term demand forecasts from global manufacturers.

Name (Ticker) 1-Day % Change
Leaders
Agribusiness (MOO) 1.17%
Agriculture Producers (VEGI) 1.13%
Global Upstream Natural Resources (GUNR) 0.79%
Hydrogen (HYDR) 0.52%
Global Natural Resources Income (FTRI) 0.52%
Laggards
Genomic Revolution (ARKG) -5.42%
Nickel Miners (NIKL) -4.20%
Junior Copper Miners (COPJ) -4.02%
Silver Miners (SLVR) -3.89%
Lithium Miners (LITP) -3.88%

Developed ex-U.S. & Emerging Markets

International equities struggled uniformly throughout Thursday’s session, driven by pronounced weakness across the Asia-Pacific region. The South Korea Index (EWY) registered a severe 7.04% decline, pulling its 1-Month performance down to -5.58% despite maintaining a robust 125.76% return over the trailing 1-Year period. Among emerging markets, the Brazil Index (EWZ) and the Mexico Index (EWW) dropped 3.96% and 3.37%, respectively, as local currencies depreciated against the greenback. Meanwhile, the United Kingdom Index (EWU) managed to limit its losses to 0.93%, emerging as one of the few relative bright spots within the developed cohort.

Name (Ticker) 1-Day % Change 1 Month 3 Month YTD 1 Year
Developed Markets
Dev ex-U.S. (EFA) -1.57% -6.42% 2.83% 1.49% 21.99%
Australia (EWA) -2.00% -2.34% 9.01% 8.51% 25.91%
Canada (EWC) -1.12% 1.07% 4.57% 3.56% 42.39%
France (EWQ) -1.40% -6.64% -2.40% -3.13% 9.33%
Germany (EWG) -1.13% -8.23% -4.36% -5.08% 7.94%
Hong Kong (EWH) -2.01% -1.93% 8.01% 7.67% 32.49%
Japan (EWJ) -1.80% -9.83% 4.02% 4.27% 26.70%
Netherlands (EWN) -1.78% -4.18% 4.47% 3.38% 28.92%
South Korea (EWY) -7.04% -5.58% 36.30% 27.03% 125.76%
Switzerland (EWL) -1.21% -6.46% 1.70% -1.00% 15.42%
U.K. (EWU) -0.93% -2.40% 8.06% 4.32% 28.58%
Emerging Markets
Emerging (EEM) -3.20% -6.42% 6.51% 4.09% 32.67%
Brazil (EWZ) -3.96% -6.16% 12.30% 13.69% 55.63%
China (MCHI) -1.08% -4.79% -5.09% -3.98% 5.98%
India (INDA) -1.52% -8.64% -8.69% -10.23% -0.43%
Indonesia (EIDO) -1.92% -11.35% -14.64% -15.19% -2.52%
Malaysia (EWM) -0.87% -3.97% 7.42% 4.28% 31.37%
Mexico (EWW) -3.37% -9.70% 4.08% 4.10% 46.93%
South Africa (EZA) -2.86% -6.92% 6.10% 0.32% 60.26%
Taiwan (EWT) -2.99% -3.86% 13.84% 9.81% 44.02%
Thailand (THD) -1.66% -5.86% 11.96% 10.44% 31.18%

Fixed Income

The fixed income complex experienced broad repricing as investors digested hawkish shifts in intermediate duration yields. Government debt at the shortest end of the curve provided the only absolute positive return, with the Ultrashort Treasury Index (BIL) advancing a marginal 0.02%. Credit-sensitive allocations faced steady selling pressure, pushing the Convertible Bond Index (CWB) down 1.52% alongside broader equity market weakness. International local-currency debt absorbed the steepest losses within the category, as the Emerging Markets Local Currency Bond Index (EMLC) declined 1.25% due to a combination of rising global rates and a firming U.S. dollar.

Name (Ticker) 1-Day % Change 1 Month 3 Month YTD 1 Year
Multisector
Taxable Short-Term (BSV) -0.25% -0.47% 0.41% 0.08% 4.64%
Taxable Core Enhanced (IUSB) -0.32% -1.03% 0.44% 0.06% 5.45%
Taxable Core (AGG) -0.37% -1.06% 0.45% 0.05% 5.17%
Taxable Long Term (BLV) -0.42% -2.57% -0.02% -0.43% 3.37%
Taxable Multisector (PYLD) -0.53% -1.61% 0.14% -0.46% 6.80%
Government
Taxable Ultrashort (BIL) 0.02% 0.28% 0.84% 0.68% 4.03%
Inflation Protected (TIP) -0.13% -0.29% 0.95% 0.93% 4.84%
Government Short (SPTS) -0.14% -0.23% 0.52% 0.22% 4.11%
Government Long (SPTL) -0.30% -2.07% 0.71% 0.28% 2.09%
Government Intermediate (SPTI) -0.31% -0.71% 0.41% 0.09% 5.11%
Specialty
Bank Loans (BKLN) -0.19% -0.09% -0.96% -1.39% 5.36%
Mortgage Backed (MBS) -0.28% -0.96% 0.98% 0.34% 6.35%
Corporate (SPIB) -0.45% -1.02% 0.23% -0.20% 6.17%
Preferred Stock (PFF) -0.61% -1.90% 0.32% 0.31% 5.51%
Taxable High Yield (HYG) -0.64% -1.30% -0.07% -0.62% 6.52%
Convertible (CWB) -1.52% -1.85% 2.40% 3.43% 22.32%
International & EM
International USD (BNDX) -0.35% -1.27% 0.14% -0.06% 3.74%
International (IGOV) -0.75% -3.89% -0.84% -1.08% 5.65%
Emerging USD (EMB) -0.84% -2.07% -0.24% -0.66% 10.07%
Emerging (EMLC) -1.25% -3.98% 0.08% -0.99% 12.23%
Municipals
Municipal Short (SUB) -0.09% -0.26% 0.82% 0.55% 3.66%
Municipal Long (MLN) -0.09% -0.51% 1.00% 0.38% 4.07%
Municipal Intermediate (MUB) -0.24% -0.76% 0.92% 0.41% 4.46%
Municipal High Yield (HYD) -0.28% -1.08% 0.04% -0.56% 2.20%

Commodities

Commodity markets posted the most robust gains of the session, fueled entirely by an aggressive upward repricing in global energy markets. The WTI Crude Oil Index (USO) and the Brent Crude Oil Index (BNO) surged 9.57% and 9.56% respectively, reflecting acute supply constraints and escalating geopolitical risk premiums. Conversely, safe-haven metals failed to catch a bid despite the broader market volatility. The Gold Index (GLD) declined 1.97% and the Silver Index (SLV) dropped 1.84%, as rising real yields diminished the appeal of non-yielding precious metal assets.

Name (Ticker) 1-Day % Change 1 Month 3 Month YTD 1 Year
Broad Commodities (DJP) 2.39% 17.90% 28.39% 27.47% 39.06%
Agriculture
Sugar (CANE) 1.35% 7.74% -0.10% -0.15% -19.78%
Soybeans (SOYB) 0.49% 5.88% 10.30% 13.63% 18.06%
Corn (CORN) 0.38% 5.51% 4.73% 4.85% -1.01%
Wheat (WEAT) 0.31% 7.40% 11.64% 14.77% -5.48%
Agriculture (DBA) 0.19% 3.32% 4.48% 4.82% 4.25%
Energy
WTI Crude Oil (USO) 9.57% 55.00% 72.05% 71.18% 62.62%
Brent Crude Oil (BNO) 9.56% 51.35% 70.80% 70.37% 64.68%
Gasoline (UGA) 6.33% 39.39% 50.10% 53.80% 57.48%
Energy (DBE) 6.31% 48.64% 61.78% 63.07% 57.73%
Natural Gas (UNG) 1.24% 4.91% 2.44% 6.36% -39.77%
Industrial Metals
Industrial Metals (DBB) -0.04% 4.03% 13.64% 6.97% 27.30%
Copper (CPER) -1.52% 0.17% 8.35% 1.74% 17.70%
Precious Metals
Palladium (PALL) -1.47% 0.03% 7.72% 1.14% 69.11%
Silver (SLV) -1.84% 12.92% 36.33% 18.72% 153.08%
Platinum (PPLT) -1.90% 6.80% 21.91% 3.99% 113.89%
Gold (GLD) -1.97% 3.43% 18.07% 17.81% 72.71%
Precious Metals (DBP) -2.15% 5.34% 20.75% 16.98% 82.09%

Cryptocurrency

Digital asset markets recorded modest declines during Thursday’s trading session, demonstrating relative resilience compared to the heavy losses observed in traditional high-beta equities. The Multi-Coin Index (NCIQ) outperformed single-asset products, mitigating its daily loss to 0.22%. The Bitcoin Index (IBIT) followed closely behind with a 0.30% drop, maintaining a 7.83% positive return over the trailing 1-Month period. On the downside, the XRP Index (XRP) trailed its large-cap peers, retreating 0.71% as short-term momentum continued to consolidate across the broader blockchain ecosystem.

Name (Ticker) 1-Day % Change 1 Month 3 Month YTD 1 Year
XRP (XRP) -0.71% 2.05% -31.13% -24.76%
Solana (SOLZ) -0.44% 12.77% -34.47% -30.54%
Ethereum (ETHA) -0.38% 8.09% -32.83% -30.32% 10.07%
Bitcoin (IBIT) -0.30% 7.83% -21.97% -19.54% -15.27%
Multi-Coin (NCIQ) -0.22% 7.58% -24.52% -21.54% -15.28%

What to Watch Today

Heading into Friday’s session, market participants will closely monitor the release of the preliminary University of Michigan Consumer Sentiment index for March. Any signs of deteriorating consumer confidence or rising long-term inflation expectations could further pressure both equity valuations and intermediate bond yields. Additionally, investors will process the latest U.S. Import and Export Price data to gauge how recent fluctuations in the U.S. dollar and spiking energy costs are impacting the broader inflation narrative. Trading volumes are expected to remain elevated as institutions reposition portfolios ahead of the weekend.

This material is for informational purposes only and should not be considered investment advice. All investments, including ETFs, involve risk, including the possible loss of principal. Investors should consider their investment objectives, risks, charges, and expenses carefully before investing.

This analysis was developed by the team at ETF Action. We leverage advanced AI tools to assist in the drafting and refinement of our content, based on our expert prompts, direction, and final review.