Macro Overview
U.S. equities paused on Tuesday, with the S&P 500 (IVV) dipping -0.28% as investors digested weak labor market signals and a sharp decline in the energy sector. A surprise rise in the unemployment rate to 4.6% weighed on sentiment, suggesting the labor market may be cooling faster than anticipated. The day’s most significant move came from the oil patch, where crude prices tumbled to four-year lows below $55 per barrel, sending the Energy Select Sector SPDR Fund (XLE) crashing -3.05%. Despite the broader weakness, the technology sector held firm, helping the Nasdaq post a modest gain.
U.S. Size & Style
Growth continued to outperform value across the capitalization spectrum, with Large Growth (IVW) standing out as the only style box to finish in positive territory, gaining +0.12%. Conversely, Large Value (IVE) lagged significantly, falling -0.77%, dragged down by its heavy weighting in energy and financials. Small and mid-caps also struggled, with Small Value (IJS) dropping -0.74% amid economic growth concerns.
| Name (Ticker) | 1 Day | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Large Value (IVE) | -0.77% | -0.76% | 1.15% | 4.49% | 12.46% | 9.62% |
| Large Cap (IVV) | -0.28% | -0.43% | 1.03% | 3.17% | 16.97% | 13.31% |
| Large Growth (IVW) | +0.12% | -0.16% | 0.95% | 2.05% | 20.76% | 16.40% |
| Mid Value (IJJ) | -0.74% | -0.86% | 4.53% | 2.50% | 7.99% | 3.82% |
| Mid Cap (IJH) | -0.66% | -0.83% | 3.75% | 1.87% | 7.88% | 2.86% |
| Mid Growth (IJK) | -0.52% | -0.88% | 3.04% | 1.29% | 7.53% | 1.73% |
| Small Value (IJS) | -0.74% | -1.06% | 5.12% | 5.41% | 8.00% | 2.29% |
| Small Cap (IJR) | -0.73% | -1.05% | 5.10% | 4.10% | 7.71% | 1.63% |
| Small Growth (IJT) | -0.71% | -1.10% | 5.00% | 2.81% | 7.35% | 0.76% |
U.S. Sectors & Industries
Sector performance was starkly divided, with Technology (XLK) leading the way at +0.18%, acting as a safe haven amid the broader sell-off. At the bottom of the table, Energy (XLE) collapsed -3.05%, its worst single-day performance in months. The pain within the energy complex was widespread, with the Oil & Gas Equipment & Services (XES) industry plummeting nearly -5.00% as crude prices broke key support levels.
| Sector (Ticker) | 1 Day | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Technology (XLK) | +0.18% | -0.79% | -1.05% | 4.81% | 23.19% | 18.83% |
| Consumer Discretionary (XLY) | +0.16% | 1.02% | 5.62% | 0.87% | 9.41% | 3.03% |
| Communication Services (XLC) | +0.07% | 0.09% | 4.78% | -1.23% | 21.56% | 16.44% |
| Materials (XLB) | -0.27% | -0.33% | 3.72% | -0.26% | 8.52% | 3.78% |
| Utilities (XLU) | -0.42% | 0.49% | -3.02% | 2.99% | 16.09% | 15.03% |
| Consumer Staples (XLP) | -0.45% | -0.18% | 2.61% | 0.09% | 2.78% | -0.24% |
| Industrials (XLI) | -0.59% | -0.43% | 2.66% | 3.21% | 19.65% | 15.19% |
| Financial (XLF) | -0.64% | -0.56% | 4.18% | 2.35% | 14.22% | 12.11% |
| Real Estate (XLRE) | -0.88% | -0.49% | -0.98% | -2.83% | 2.00% | -1.60% |
| Health Care (XLV) | -1.30% | 0.01% | 1.48% | 13.03% | 13.48% | 12.56% |
| Energy (XLE) | -3.05% | -3.74% | -4.78% | -1.57% | 4.83% | 3.76% |
Global Thematic
Thematic performance showed massive divergence, with risk-on assets in cannabis and crypto defying the broader market gloom. Cannabis (CNBS) surged an eye-popping +18.37%, likely driven by renewed legislative hopes or speculative buying. Meanwhile, the energy slump weighed heavily on infrastructure themes, with Midstream (MLPX) falling -2.02%.
| Name (Ticker) | 1-Day % Change |
|---|---|
| Cannabis & Vice (CNBS) | +18.37% |
| Innovation (ARKK) | +1.17% |
| Crypto Miners (WGMI) | +1.13% |
| Digital Payments (IPAY) | +0.47% |
| Solar (TAN) | +0.46% |
| Robotics & Automation (BOTZ) | -0.97% |
| Tech & Battery Metals (LIT) | -0.97% |
| Digital & Communications (SRVR) | -1.12% |
| MLP C-Corp (AMLP) | -1.54% |
| Midstream & MLP RIC (MLPX) | -2.02% |
Developed Markets ex-U.S.
International developed markets were generally softer, with Dev ex-U.S. (EFA) declining -0.46%. Asian markets saw the most significant weakness; South Korea (EWY) fell -1.26% and Japan (EWJ) dropped -1.13%. European markets were more resilient, with France (EWQ) finishing nearly flat at -0.03%.
| Country (Ticker) | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Dev ex-U.S. (EFA) | -0.46% | 0.15% | 1.46% | 3.53% | 30.03% | 26.74% |
| Australia (EWA) | -0.59% | -0.97% | 1.21% | -4.08% | 11.75% | 7.80% |
| Canada (EWC) | -0.64% | -0.81% | 5.04% | 6.74% | 33.53% | 30.47% |
| France (EWQ) | -0.03% | 0.64% | 0.73% | 3.08% | 28.73% | 27.14% |
| Germany (EWG) | -0.17% | -0.36% | 2.86% | 2.14% | 34.27% | 29.43% |
| Hong Kong (EWH) | -0.88% | -0.20% | -4.15% | 0.39% | 33.80% | 33.20% |
| Japan (EWJ) | -1.13% | -0.11% | -0.08% | 3.15% | 26.06% | 24.19% |
| Netherlands (EWN) | -0.32% | -0.05% | 0.76% | 5.14% | 33.41% | 29.56% |
| South Korea (EWY) | -1.26% | -1.20% | -2.73% | 13.47% | 79.91% | 68.72% |
| Switzerland (EWL) | -0.07% | 1.11% | 2.55% | 6.38% | 30.86% | 27.72% |
| U.K. (EWU) | -0.44% | 0.64% | 1.85% | 3.98% | 31.12% | 28.09% |
Emerging Markets
Emerging markets underperformed their developed peers, with Emerging (EEM) slipping -0.62%. Brazil (EWZ) was the day’s biggest loser, shedding -2.84% as commodity prices weakened. On the positive side, Malaysia (EWM) bucked the trend with a solid gain of +0.46%.
| Country (Ticker) | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Emerging (EEM) | -0.62% | -0.92% | -2.21% | 1.35% | 29.74% | 26.00% |
| Brazil (EWZ) | -2.84% | -2.08% | -1.67% | 6.31% | 47.58% | 40.62% |
| China (MCHI) | -0.71% | -1.76% | -4.83% | -6.82% | 30.22% | 30.92% |
| India (INDA) | -0.28% | -0.36% | -3.06% | -1.71% | 0.59% | -3.98% |
| Indonesia (EIDO) | -0.15% | 0.38% | 2.46% | 5.50% | 4.64% | -0.65% |
| Malaysia (EWM) | +0.46% | 0.87% | 2.89% | 6.56% | 13.30% | 14.40% |
| Mexico (EWW) | -1.24% | -1.53% | 3.55% | 4.20% | 51.36% | 42.21% |
| South Africa (EZA) | -0.43% | 0.99% | 3.47% | 13.63% | 67.33% | 50.85% |
| Taiwan (EWT) | -0.27% | -0.26% | -1.89% | 0.97% | 23.52% | 21.24% |
| Thailand (THD) | -0.87% | 1.51% | 3.26% | -1.85% | 2.52% | -0.35% |
Fixed Income
Treasury yields dipped slightly on the back of the weaker-than-expected labor data, providing a tailwind for long-duration assets. Government Long (SPTL) was the top performer, rising +0.49%. Credit spreads remained largely stable, allowing high-yield bonds to post modest gains.
| Category (Ticker) | 1 Day | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Taxable Core (AGG) | +0.19% | 0.29% | 0.43% | 0.33% | 7.07% | 6.20% |
| Taxable Core Enhanced (IUSB) | +0.19% | 0.26% | 0.47% | 0.51% | 7.26% | 6.44% |
| Taxable Multisector (PYLD) | +0.07% | 0.26% | 0.85% | 1.30% | 9.20% | 8.87% |
| Taxable Ultrashort (BIL) | +0.01% | 0.01% | 0.32% | 0.97% | 3.99% | 4.18% |
| Taxable Short-Term (BSV) | +0.10% | 0.15% | 0.55% | 0.81% | 5.81% | 5.87% |
| Taxable Long Term (BLV) | +0.42% | 0.47% | -0.12% | -1.27% | 6.50% | 3.84% |
| Government Short (SPTS) | +0.03% | 0.10% | 0.52% | 0.90% | 4.85% | 5.16% |
| Government Intermediate (SPTI) | +0.19% | 0.28% | 0.48% | 0.52% | 7.41% | 6.87% |
| Government Long (SPTL) | +0.49% | 0.60% | -0.53% | -1.21% | 5.47% | 2.81% |
| Inflation Protected (TIP) | +0.02% | -0.05% | -0.23% | -0.74% | 6.69% | 5.75% |
| Corporate (SPIB) | +0.09% | 0.18% | 0.69% | 0.63% | 7.64% | 7.08% |
| Taxable High Yield (HYG) | +0.06% | 0.11% | 1.02% | 0.87% | 8.13% | 7.45% |
| Bank Loans (BKLN) | +0.00% | 0.05% | 0.91% | 1.81% | 6.45% | 6.56% |
| Preferred Stock (PFF) | +0.11% | 0.18% | 1.19% | -1.61% | 5.04% | 3.32% |
| Convertible (CWB) | -0.12% | -1.34% | 0.78% | 0.33% | 16.20% | 11.87% |
| Mortgage Backed (MBS) | +0.21% | 0.35% | 0.59% | 0.65% | 8.07% | 7.32% |
| International USD (BNDX) | +0.12% | 0.22% | -0.11% | 0.30% | 2.89% | 2.43% |
| International (IGOV) | +0.09% | 0.31% | 0.24% | -1.88% | 10.05% | 7.50% |
| Emerging USD (EMB) | +0.27% | 0.41% | 1.10% | 2.43% | 13.84% | 12.03% |
| Emerging (EMLC) | +0.23% | 0.27% | 1.17% | 1.75% | 17.85% | 15.81% |
| Municipal Short (SUB) | +0.02% | 0.05% | 0.39% | 0.23% | 3.42% | 3.44% |
| Municipal Intermediate (MUB) | +0.14% | 0.13% | 0.29% | 1.09% | 3.39% | 2.75% |
| Municipal Long (MLN) | +0.00% | -0.06% | -0.49% | 0.98% | 1.14% | 0.45% |
| Municipal High Yield (HYD) | +0.20% | 0.16% | 1.05% | 1.33% | 2.37% | 2.03% |
Commodities
Commodities were hit hard by the sell-off in energy. The WTI Crude Oil (USO) fund dropped -2.53% as global supply concerns persisted. Broad Commodities (DJP) finished down -1.05%. However, precious metals offered a bright spot, with Platinum (PPLT) rallying +2.96%.
| Commodity (Ticker) | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Broad Commodities (DJP) | -1.05% | -1.42% | -0.92% | 3.40% | 14.71% | 15.93% |
| Energy (DBE) | -2.46% | -3.31% | -8.99% | -9.03% | -4.72% | -2.25% |
| WTI Crude Oil (USO) | -2.53% | -3.84% | -7.30% | -12.55% | -12.42% | -10.22% |
| Brent Crude Oil (BNO) | -2.51% | -3.72% | -7.48% | -11.80% | -9.18% | -8.14% |
| Natural Gas (UNG) | -2.89% | -4.95% | -16.90% | -8.47% | -28.02% | -13.26% |
| Gasoline (UGA) | -2.87% | -4.17% | -12.74% | -8.35% | -3.78% | -2.42% |
| Precious Metals (DBP) | +0.04% | 0.91% | 9.26% | 21.82% | 69.44% | 67.62% |
| Gold (GLD) | +0.02% | 0.11% | 5.30% | 16.58% | 63.50% | 61.67% |
| Silver (SLV) | -0.65% | 2.91% | 25.61% | 49.56% | 119.26% | 107.66% |
| Platinum (PPLT) | +2.96% | 5.50% | 19.45% | 32.25% | 102.01% | 95.79% |
| Palladium (PALL) | +1.90% | 7.04% | 14.24% | 36.17% | 74.94% | 68.58% |
| Industrial Metals (DBB) | -0.41% | -0.23% | 2.55% | 7.79% | 17.40% | 15.60% |
| Copper (CPER) | -0.78% | 0.18% | 5.01% | 13.61% | 30.72% | 25.82% |
| Agriculture (DBA) | -0.34% | -1.02% | 0.61% | -5.44% | -1.28% | -1.56% |
| Corn (CORN) | -0.63% | -0.90% | -1.73% | -2.06% | -6.29% | -4.19% |
| Soybeans (SOYB) | -0.85% | -1.02% | -4.58% | -0.49% | 3.77% | 6.35% |
| Wheat (WEAT) | -1.58% | -2.92% | -5.32% | -7.09% | -17.30% | -16.96% |
| Sugar (CANE) | -0.51% | -0.97% | 1.53% | -9.00% | -15.53% | -20.24% |
Cryptocurrency
Digital assets decoupled from the risk-off tone in equities. Solana (SOLZ) led the charge, rising +2.89%. Bitcoin (IBIT) also showed strength, climbing +2.16% to reclaim key levels.
| Asset (Ticker) | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Ethereum (ETHA) | +0.72% | -4.25% | -5.95% | -34.47% | -11.90% | -27.40% |
| Multi-Coin (NCIQ) | +1.83% | -3.24% | -7.43% | -28.56% | ||
| Bitcoin (IBIT) | +2.16% | -2.91% | -7.04% | -25.10% | -6.30% | -17.45% |
| XRP | +2.52% | -3.66% | ||||
| Solana (SOLZ) | +2.89% | -2.33% | -8.46% | -47.97% |
What to Watch Today
All eyes turn to the 8:30 AM ET release of the Monthly Retail Sales report, a critical gauge of consumer health as the holiday shopping season enters its final stretch. With unemployment ticking higher, investors are anxious to see if consumption is beginning to buckle under the weight of a cooling labor market. A weaker-than-expected print could reignite recession fears, while a resilient number might offer reassurance that the consumer remains a pillar of economic stability.
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.
