Daily Market Commentary: October 21, 2025
Macro Overview
U.S. equities started the week on a strong footing, with all major indices posting gains of over 1%. The rally was broad-based as investor confidence returned, fueled by strong earnings expectations and reports of robust iPhone 17 demand boosting shares of Apple. The benchmark S&P 500 (IVV) climbed 1.03%, reflecting the upbeat sentiment that also saw credit market concerns ease after a volatile prior week for regional banks.
U.S. Size & Style
Monday’s session saw a clear preference for smaller capitalization stocks, with Small-Cap Value leading the charge. This risk-on appetite was evident across the board as all segments finished in positive territory. Small Value (IJS) posted the strongest gain at 1.70%, followed closely by the broader Small Cap (IJR) index. Large-caps also performed well, though Large Growth lagged slightly behind its value counterpart.
| Name (Ticker) | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Large Value (IVE) | +1.17% | 1.17% | 1.87% | 6.07% | 10.55% | 5.70% |
| Large Cap (IVV) | +1.03% | 1.03% | 1.16% | 7.29% | 15.66% | 16.31% |
| Large Growth (IVW) | +0.85% | 0.85% | 0.53% | 8.24% | 20.00% | 25.09% |
| Mid Value (IJJ) | +1.39% | 1.39% | 0.02% | 3.11% | 5.30% | 4.06% |
| Mid Cap (IJH) | +1.23% | 1.23% | -0.53% | 3.17% | 5.69% | 3.47% |
| Mid Growth (IJK) | +1.10% | 1.10% | -1.02% | 3.27% | 5.72% | 2.60% |
| Small Value (IJS) | +1.70% | 1.70% | 0.09% | 9.01% | 3.56% | 3.27% |
| Small Cap (IJR) | +1.58% | 1.58% | 0.16% | 7.18% | 4.76% | 3.13% |
| Small Growth (IJT) | +1.53% | 1.53% | 0.28% | 5.48% | 5.98% | 2.69% |
U.S. Sectors & Industries
Cyclical sectors led the market higher, with Materials (XLB) and Industrials (XLI) posting the best performance among the 11 GICS sectors. The rally had significant breadth, though defensive sectors like Consumer Staples and Utilities lagged, ending the day nearly flat. Standout industry performance came from Metals & Mining, which surged nearly 5%, alongside strong showings from Aerospace & Defense and Regional Banking, indicating renewed confidence in economically sensitive areas.
| Sector (Ticker) | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Materials (XLB) | +1.19% | 1.19% | -1.63% | -0.96% | 7.23% | -7.10% |
| Industrials (XLI) | +1.18% | 1.18% | 0.67% | 1.78% | 17.70% | 11.91% |
| Financial (XLF) | +1.17% | 1.17% | -2.37% | 0.81% | 10.35% | 12.47% |
| Communication Services (XLC) | +1.13% | 1.13% | -2.31% | 9.85% | 21.13% | 28.87% |
| Technology (XLK) | +1.12% | 1.12% | 3.45% | 10.60% | 24.52% | 25.59% |
| Health Care (XLV) | +1.06% | 1.06% | 5.95% | 10.32% | 6.64% | -3.77% |
| Energy (XLE) | +1.06% | 1.06% | -1.00% | 1.95% | 3.95% | -0.61% |
| Real Estate (XLRE) | +1.05% | 1.05% | 2.28% | 2.30% | 6.85% | -1.83% |
| Consumer Discretionary (XLY) | +0.79% | 0.79% | -1.94% | 6.54% | 6.00% | 19.43% |
| Utilities (XLU) | -0.03% | -0.03% | 8.48% | 10.03% | 23.45% | 14.96% |
| Consumer Staples (XLP) | -0.09% | -0.09% | 1.05% | -0.84% | 3.27% | -0.53% |
Global Thematic
Thematic ETFs saw a surge in speculative interest, with disruptive technology and innovation-focused funds leading the day. The ARK Genomic Revolution ETF (ARKG) was the standout performer, rocketing up 8.39%. Other high-growth areas like crypto and blockchain also saw significant gains. On the other end, themes related to sustainability and clean energy, like Wind, underperformed.
| Top 5 Performers (Ticker) | 1-Day % Change |
|---|---|
| ARK Genomic Revolution ETF (ARKG) | +8.39% |
| Simplify Propel Opportunities ETF (SURI) | +4.98% |
| SPDR S&P Metals & Mining ETF (XME) | +4.93% |
| Schwab Crypto Thematic ETF (STCE) | +4.65% |
| Global X Blockchain ETF (BKCH) | +4.59% |
| Bottom 5 Performers (Ticker) | 1-Day % Change |
| First Trust Global Wind Energy ETF (FAN) | -0.89% |
| Sprott Uranium Miners ETF (URNM) | -0.62% |
| BNY Mellon Global Infrastructure Income ETF (BKGI) | -0.25% |
| Tortoise Essential Energy Fund (TPZ) | -0.25% |
| VanEck Uranium and Nuclear ETF (NLR) | -0.15% |
Developed Markets ex-U.S.
International developed markets joined the global equity rally, with Asian markets showing particular strength. South Korea (EWY) was the top performer, gaining an impressive 2.16%, followed by Japan (EWJ) which rose 1.88%. European markets were more mixed, with France and Switzerland posting slight losses for the day.
| Country (Ticker) | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Dev ex-U.S. (EFA) | +0.83% | 0.83% | 2.46% | 7.84% | 28.20% | 19.91% |
| Australia (EWA) | +1.26% | 1.26% | 1.38% | 3.06% | 15.99% | 5.95% |
| Canada (EWC) | +0.88% | 0.88% | -0.02% | 8.86% | 26.70% | 23.08% |
| France (EWQ) | -0.07% | -0.07% | 3.48% | 5.31% | 28.82% | 18.64% |
| Germany (EWG) | +1.21% | 1.21% | 1.60% | -0.59% | 33.79% | 27.61% |
| Hong Kong (EWH) | +1.09% | 1.09% | -0.23% | 5.47% | 31.32% | 22.68% |
| Japan (EWJ) | +1.88% | 1.88% | 3.40% | 16.33% | 25.51% | 21.97% |
| Netherlands (EWN) | +0.34% | 0.34% | 3.54% | 10.08% | 34.04% | 23.90% |
| South Korea (EWY) | +2.16% | 2.16% | 12.97% | 24.92% | 77.70% | 49.22% |
| Switzerland (EWL) | -0.17% | -0.17% | 4.38% | 5.87% | 27.89% | 14.11% |
| U.K. (EWU) | +0.21% | 0.21% | 1.93% | 5.93% | 26.91% | 18.69% |
Emerging Markets
Emerging market equities posted strong gains, with Indonesia (EIDO) leading all countries with a rally of 3.01%. Latin America also showed strength with Brazil (EWZ) gaining 1.72%. The only notable exception was Mexico (EWW), which finished the day with a slight loss of -0.29%.
| Country (Ticker) | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Emerging (EEM) | +1.37% | 1.37% | 3.60% | 11.90% | 32.58% | 22.79% |
| Brazil (EWZ) | +1.72% | 1.72% | -2.30% | 12.55% | 36.69% | 14.08% |
| China (MCHI) | +1.28% | 1.28% | -0.50% | 11.61% | 38.17% | 30.65% |
| India (INDA) | +0.53% | 0.53% | 1.48% | 0.44% | 3.99% | -2.51% |
| Indonesia (EIDO) | +3.01% | 3.01% | 0.17% | 0.73% | -0.98% | -17.61% |
| Malaysia (EWM) | +0.47% | 0.47% | 0.90% | 7.90% | 7.49% | 3.64% |
| Mexico (EWW) | -0.29% | -0.29% | -0.24% | 10.90% | 43.39% | 28.28% |
| South Africa (EZA) | +1.22% | 1.22% | 5.87% | 20.80% | 59.85% | 39.62% |
| Taiwan (EWT) | +1.66% | 1.66% | 4.40% | 11.70% | 27.84% | 20.60% |
| Thailand (THD) | +1.46% | 1.46% | -2.26% | 6.47% | 0.85% | -10.97% |
Fixed Income
The fixed income market saw gains in riskier segments, consistent with the equity market’s tone. Convertible (CWB) bonds and Preferred Stock (PFF) were the top performers, both rising 0.80%. Longer-duration government bonds also caught a bid, while shorter-term government and municipal debt finished slightly lower.
| Category (Ticker) | 1 Day | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Taxable Core (AGG) | +0.17% | 0.17% | 1.16% | 4.10% | 7.47% | 5.65% |
| Taxable Core Enhanced (IUSB) | +0.15% | 0.15% | 1.11% | 3.95% | 7.48% | 5.92% |
| Taxable Multisector (PYLD) | +0.22% | 0.22% | 0.67% | 3.71% | 8.40% | 8.37% |
| Taxable Ultrashort (BIL) | +0.02% | 0.02% | 0.30% | 1.04% | 3.37% | 4.31% |
| Taxable Short-Term (BSV) | +0.00% | 0.00% | 0.54% | 2.00% | 5.39% | 5.30% |
| Taxable Long Term (BLV) | +0.39% | 0.39% | 2.35% | 7.81% | 9.26% | 4.17% |
| Government Short (SPTS) | -0.03% | -0.03% | 0.46% | 1.62% | 4.32% | 4.79% |
| Government Intermediate (SPTI) | +0.07% | 0.07% | 0.86% | 3.04% | 7.37% | 5.63% |
| Government Long (SPTL) | +0.36% | 0.36% | 2.80% | 7.94% | 8.38% | 2.68% |
| Inflation Protected (TIP) | +0.09% | 0.09% | 0.48% | 2.71% | 7.58% | 5.25% |
| Corporate (SPIB) | +0.15% | 0.15% | 0.60% | 3.02% | 7.42% | 6.66% |
| Taxable High Yield (HYG) | +0.20% | 0.20% | 0.00% | 2.26% | 7.37% | 7.39% |
| Bank Loans (BKLN) | +0.24% | 0.24% | -0.02% | 1.19% | 4.64% | 6.27% |
| Preferred Stock (PFF) | +0.80% | 0.80% | -0.93% | 3.18% | 5.82% | 0.94% |
| Convertible (CWB) | +0.80% | 0.80% | 2.73% | 9.38% | 20.75% | 21.85% |
| Mortgage Backed (MBS) | +0.08% | 0.08% | 1.17% | 4.51% | 8.06% | 6.29% |
| International USD (BNDX) | +0.08% | 0.08% | 1.13% | 1.98% | 3.57% | 3.61% |
| International (IGOV) | -0.02% | -0.02% | 0.16% | 1.21% | 10.93% | 5.41% |
| Emerging USD (EMB) | +0.44% | 0.44% | 1.66% | 6.00% | 12.34% | 10.12% |
| Emerging (EMLC) | +0.20% | 0.20% | 0.34% | 3.31% | 15.85% | 11.28% |
| Municipal Short (SUB) | -0.19% | -0.19% | -0.29% | 0.74% | 2.84% | 2.97% |
| Municipal Intermediate (MUB) | +0.08% | 0.08% | 1.25% | 4.98% | 3.34% | 2.81% |
| Municipal Long (MLN) | +0.03% | 0.03% | 1.82% | 8.35% | 2.00% | 1.48% |
| Municipal High Yield (HYD) | +0.12% | 0.12% | 0.72% | 5.77% | 1.70% | 1.18% |
Commodities
Commodities had a wild session, driven by a massive surge in Precious Metals and Natural Gas. Natural Gas (UNG) jumped 8.93% on forecasts for colder weather. Meanwhile, Gold (GLD) rose 3.64% as a safe-haven asset amid the ongoing US government shutdown. Crude oil, however, bucked the trend, finishing the day slightly lower.
| Commodity (Ticker) | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Broad Commodities (DJP) | +2.06% | 2.06% | 5.57% | 3.83% | 14.09% | 15.59% |
| WTI Crude Oil (USO) | -0.22% | -0.22% | -7.74% | -10.67% | -10.22% | -4.97% |
| Brent Crude Oil (BNO) | -0.43% | -0.43% | -7.38% | -8.72% | -7.35% | -4.18% |
| Natural Gas (UNG) | +8.93% | 8.93% | 2.86% | -18.42% | -23.08% | -0.77% |
| Gold (GLD) | +3.64% | 3.64% | 18.86% | 30.73% | 66.50% | 60.44% |
| Silver (SLV) | +1.55% | 1.55% | 22.23% | 37.88% | 81.24% | 55.74% |
| Agriculture (DBA) | +0.87% | 0.87% | -0.74% | 2.84% | 0.68% | 9.72% |
Cryptocurrency
The cryptocurrency market rebounded strongly alongside other risk assets. Ethereum (ETHA) led the way with a gain of 4.15%, closely followed by Bitcoin (IBIT) which rose 4.07%. The move erased some of the losses from the prior week and signaled a return of speculative appetite among digital asset investors.
| Asset (Ticker) | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Solana (SOLZ) | +3.66% | 3.66% | -21.25% | 0.50% | ||
| Multi-Coin (NCIQ) | +3.91% | 3.91% | -6.30% | -4.35% | ||
| Bitcoin (IBIT) | +4.07% | 4.07% | -3.73% | -5.62% | 18.62% | 61.07% |
| Ethereum (ETHA) | +4.15% | 4.15% | -10.22% | 11.96% | 19.18% | 49.80% |
What to Watch Today
Investors today will be closely monitoring speeches from Federal Reserve officials, including Governor Waller, for any new insights into the central bank’s monetary policy outlook. With inflation remaining sticky and recent labor market data showing signs of weakness, the Fed’s commentary will be scrutinized for clues regarding the timing of future interest rate decisions. Later in the day, the API weekly crude oil stock report will provide a fresh look at energy demand.
For a deeper dive into the data, access today’s full Daily ETF Data Pack.
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.
