Macro Overview
U.S. equities climbed to new records on Wednesday, shrugging off concerns over a government shutdown. The S&P 500 (IVV) gained 0.38%, propelled by weak economic data that fueled investor hopes for Federal Reserve rate cuts. The ADP private payrolls report significantly missed expectations, reporting a surprise loss of 32,000 jobs in September, while a separate report showed continued weakness in the manufacturing sector. In response to the data, Treasury yields fell, reflecting increased bets on a more accommodative monetary policy environment.
U.S. Size & Style
Across U.S. markets, there was a clear preference for value, particularly in smaller-cap stocks. Small-Cap Value (IJS) was the day’s leader with a gain of 0.71%, while its growth counterpart (IJT) was nearly flat at 0.01%. Large-caps posted broad gains, with Large-Cap Growth (IVW) slightly edging out Value, rising 0.42%.
| Ticker | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Large Value (IVE) | +0.25% | 0.76% | 1.97% | 5.38% | 9.81% | 7.17% |
| Large Cap (IVV) | +0.38% | 1.05% | 3.94% | 8.57% | 15.19% | 19.09% |
| Large Growth (IVW) | +0.42% | 1.24% | 5.63% | 11.38% | 19.81% | 29.01% |
| Mid Value (IJJ) | +0.44% | 0.37% | 0.36% | 4.06% | 5.56% | 8.38% |
| Mid Cap (IJH) | +0.35% | 0.23% | 0.83% | 4.64% | 6.07% | 7.33% |
| Mid Growth (IJK) | +0.20% | 0.08% | 1.19% | 5.08% | 6.17% | 6.02% |
| Small Value (IJS) | +0.71% | 1.00% | 2.13% | 9.81% | 3.85% | 6.99% |
| Small Cap (IJR) | +0.29% | 0.60% | 1.35% | 7.81% | 4.52% | 5.30% |
| Small Growth (IJT) | +0.01% | 0.27% | 0.61% | 5.94% | 5.22% | 3.56% |
U.S. Sectors & Industries
The Health Care sector was the standout leader, surging 3.09% on the day, with significant strength seen in the Pharmaceuticals and Biotech industries. Technology also had a strong session, gaining 0.98%, followed closely by the defensive Utilities sector, which rose 0.96%. On the downside, Communication Services (-1.40%) and Materials (-1.05%) were the weakest performers.
| Sector | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Health Care (XLV) | +3.09% | 5.88% | 4.87% | 5.42% | 5.67% | -4.69% |
| Technology (XLK) | +0.98% | 2.07% | 8.58% | 13.55% | 22.97% | 30.03% |
| Utilities (XLU) | +0.96% | 1.43% | 5.12% | 8.17% | 18.75% | 11.29% |
| Consumer Discretionary (XLY) | +0.63% | 0.60% | 4.24% | 10.68% | 8.18% | 21.85% |
| Energy (XLE) | +0.00% | -2.88% | -0.32% | 5.43% | 6.88% | 2.81% |
| Real Estate (XLRE) | +0.00% | 0.60% | 0.33% | 1.80% | 5.97% | -1.89% |
| Consumer Staples (XLP) | -0.15% | 0.37% | -2.46% | -3.89% | 1.44% | -2.86% |
| Industrials (XLI) | -0.28% | 0.80% | 1.59% | 4.34% | 17.91% | 15.23% |
| Financial (XLF) | -0.89% | -0.87% | -0.79% | 1.72% | 11.61% | 20.16% |
| Materials (XLB) | -1.05% | -0.18% | -3.45% | -1.09% | 6.93% | -5.93% |
| Communication Services (XLC) | -1.40% | -1.24% | 5.14% | 8.68% | 21.62% | 30.48% |
Global Thematic
It was a strong day for higher-risk thematic strategies. Clean Energy themes were among the best performers, with the Hydrogen ETF (HYDR) soaring 8.98%. Cannabis (MSOS) also had a notable session, rising 5.64%, alongside a 3.89% gain in Genomics (ARKG), indicating a risk-on sentiment in niche market segments.
| Top 5 Performers | ||
|---|---|---|
| Ticker | Name | 1-Day % Change |
| HYDR | Global X Hydrogen ETF | +8.98% |
| PBW | Invesco WilderHill Clean Energy ETF | +5.75% |
| MSOS | AdvisorShares Pure US Cannabis ETF | +5.64% |
| CNRG | SPDR S&P Kensho Clean Power ETF | +5.29% |
| ACES | ALPS Clean Energy ETF | +4.71% |
| Bottom 5 Performers | ||
| Ticker | Name | 1-Day % Change |
| GPZ | VanEck Alternative Asset Manager ETF | -1.74% |
| MJ | Amplify Alternative Harvest ETF | -1.69% |
| PBDC | Putnam BDC Income ETF | -1.67% |
| URNJ | Sprott Junior Uranium Miners ETF | -1.54% |
| BIZD | VanEck BDC Income ETF | -1.46% |
Developed Markets ex-U.S.
International developed markets showed broad strength, with the benchmark EFA index up 0.82%. South Korea (EWY) was a notable outperformer, rallying 2.23%. European markets also posted solid results, with the Netherlands (EWN) up 1.43% and major economies like France (EWQ) and the U.K. (EWU) gaining 1.27% and 1.26%, respectively.
| Country | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Dev ex-U.S. (EFA) | +0.82% | 1.63% | 2.91% | 5.49% | 26.66% | 16.94% |
| Australia (EWA) | +0.56% | 1.80% | 0.26% | 3.04% | 15.52% | 4.15% |
| Canada (EWC) | +0.04% | 1.10% | 3.65% | 9.48% | 26.32% | 23.90% |
| France (EWQ) | +1.27% | 2.06% | 4.46% | 3.78% | 26.80% | 15.17% |
| Germany (EWG) | +1.25% | 2.26% | 0.60% | 0.29% | 34.59% | 28.34% |
| Hong Kong (EWH) | +0.56% | 2.65% | 2.41% | 8.84% | 32.85% | 18.39% |
| Japan (EWJ) | +0.00% | -0.29% | 2.47% | 7.78% | 20.50% | 14.64% |
| Netherlands (EWN) | +1.43% | 3.01% | 11.02% | 8.82% | 34.02% | 19.66% |
| South Korea (EWY) | +2.23% | 3.83% | 13.36% | 14.31% | 60.92% | 32.13% |
| Switzerland (EWL) | +1.27% | 3.10% | 1.10% | 1.75% | 24.03% | 9.96% |
| U.K. (EWU) | +1.26% | 2.21% | 2.51% | 6.65% | 27.94% | 18.59% |
Emerging Markets
Emerging markets showed wide performance divergence. The broad EEM index gained 0.79%, but this masked significant weakness in Latin America, where Mexico (EWW) and Brazil (EWZ) fell sharply by -2.10% and -1.35%, respectively. In contrast, South Africa (EZA) rallied 1.01%, and Malaysia (EWM) was up 1.12%.
| Country | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Emerging (EEM) | +0.79% | 2.11% | 7.94% | 11.36% | 29.93% | 19.62% |
| Brazil (EWZ) | -1.35% | -0.49% | 3.66% | 6.22% | 38.32% | 10.31% |
| China (MCHI) | +0.61% | 3.00% | 8.06% | 19.87% | 42.76% | 28.65% |
| India (INDA) | +0.63% | 0.27% | 0.79% | -6.18% | -0.47% | -9.29% |
| Indonesia (EIDO) | -0.51% | -0.80% | -1.19% | -0.17% | -2.98% | -19.63% |
| Malaysia (EWM) | +1.12% | 1.87% | 5.39% | 7.51% | 9.12% | 1.18% |
| Mexico (EWW) | -2.10% | -0.54% | 7.81% | 9.26% | 45.21% | 30.52% |
| South Africa (EZA) | +1.01% | 2.29% | 12.28% | 19.44% | 56.32% | 37.58% |
| Taiwan (EWT) | +0.82% | 2.23% | 9.04% | 11.39% | 23.92% | 23.78% |
| Thailand (THD) | +0.59% | -0.45% | 3.48% | 14.87% | 0.29% | -11.82% |
Fixed Income
The bond market saw varied results. Convertible bonds (CWB) led with an equity-like gain of 1.00%, while Preferred Stocks (PFF) also performed well, rising 0.90%. Core bonds (AGG) posted a modest 0.25% gain as interest rates fell. Bank Loans (BKLN) were the lone category to finish in the red, down -0.10%.
| Ticker | 1 Day | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Taxable Core (AGG) | +0.25% | 0.43% | 1.39% | 2.41% | 6.46% | 2.89% |
| Taxable Core Enhanced (IUSB) | +0.23% | 0.42% | 1.28% | 2.37% | 6.52% | 3.30% |
| Taxable Multisector (PYLD) | +0.22% | 0.41% | 1.32% | 2.97% | 7.84% | 7.07% |
| Taxable Ultrashort (BIL) | +0.02% | 0.03% | 0.35% | 1.07% | 3.16% | 4.35% |
| Taxable Short-Term (BSV) | +0.19% | 0.31% | 0.45% | 1.58% | 4.95% | 4.14% |
| Taxable Long Term (BLV) | +0.32% | 0.77% | 3.50% | 3.24% | 7.15% | -1.65% |
| Government Short (SPTS) | +0.12% | 0.22% | 0.39% | 1.31% | 3.96% | 3.97% |
| Government Intermediate (SPTI) | +0.27% | 0.48% | 0.56% | 1.91% | 6.63% | 3.31% |
| Government Long (SPTL) | +0.22% | 0.74% | 3.38% | 2.60% | 5.98% | -3.90% |
| Inflation Protected (TIP) | +0.18% | 0.28% | 0.60% | 2.29% | 7.05% | 3.44% |
| Corporate (SPIB) | +0.31% | 0.46% | 1.07% | 2.41% | 6.92% | 5.15% |
| Taxable High Yield (HYG) | +0.19% | 0.32% | 1.07% | 2.46% | 7.47% | 7.41% |
| Bank Loans (BKLN) | -0.10% | 0.05% | 0.55% | 1.67% | 4.69% | 7.18% |
| Preferred Stock (PFF) | +0.90% | 0.36% | 1.94% | 5.11% | 6.07% | 1.95% |
| Convertible (CWB) | +1.00% | 2.07% | 6.12% | 11.42% | 18.82% | 22.04% |
| Mortgage Backed (MBS) | +0.32% | 0.49% | 1.54% | 2.86% | 7.11% | 3.51% |
| International USD (BNDX) | +0.05% | 0.19% | 0.58% | 0.51% | 2.61% | 2.27% |
| International (IGOV) | +0.09% | 0.71% | 0.55% | -1.27% | 10.98% | 2.63% |
| Emerging USD (EMB) | +0.34% | 0.30% | 1.92% | 4.25% | 11.12% | 7.63% |
| Emerging (EMLC) | +0.18% | 0.30% | 1.31% | 2.38% | 15.22% | 7.55% |
| Municipal Short (SUB) | +0.06% | 0.08% | 0.06% | 1.04% | 2.90% | 2.87% |
| Municipal Intermediate (MUB) | +0.18% | 0.39% | 2.40% | 2.84% | 2.27% | 1.00% |
| Municipal Long (MLN) | +0.12% | 0.53% | 4.18% | 4.62% | 0.39% | -0.84% |
| Municipal High Yield (HYD) | +0.13% | 0.54% | 3.36% | 2.58% | 1.08% | 0.07% |
Commodities
Commodities experienced a mixed session. Energy products were broadly lower, with WTI Crude Oil (USO) falling -0.83%. In contrast, Natural Gas (UNG) surged 4.21%. Precious metals saw buying interest, with Silver (SLV) leading the way with a 1.27% gain, while Gold (GLD) added a more modest 0.16%.
| Commodity | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Broad Commodities (DJP) | +0.48% | 0.65% | 3.13% | 4.67% | 10.97% | 9.03% |
| Energy (DBE) | -0.55% | -3.45% | -0.50% | 0.41% | 1.97% | 6.00% |
| Precious Metals (DBP) | +0.48% | 2.56% | 12.16% | 17.99% | 47.14% | 44.57% |
| Industrial Metals (DBB) | +0.58% | 2.13% | 4.82% | 6.88% | 9.60% | 2.55% |
| Agriculture (DBA) | +0.19% | -0.63% | -3.46% | 4.52% | 0.83% | 9.41% |
Cryptocurrency
Digital assets rallied on Wednesday, with major cryptocurrencies posting strong gains. Solana (SOLZ) was the top performer, jumping 5.74%. Ethereum (ETHA) also showed significant strength, rising 4.09%, while Bitcoin (IBIT) advanced by a solid 2.68%.
| Asset | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Bitcoin (IBIT) | +2.68% | 7.75% | 8.63% | 11.53% | 25.81% | 89.98% |
| Multi-Coin (NCIQ) | +3.12% | 7.61% | 6.62% | 19.03% | ||
| Ethereum (ETHA) | +4.09% | 7.68% | -0.06% | 80.32% | 29.70% | 73.91% |
| Solana (SOLZ) | +5.74% | 9.40% | 7.41% | 45.24% |
What to Watch Today
Investors will be monitoring the release of August Factory Orders this morning, with economists expecting a 1.4% increase. This data provides a gauge of demand in the manufacturing sector. Notably, the weekly Initial Jobless Claims report will not be released today due to the ongoing government shutdown. The absence of this key labor market indicator, along with the expected delay of Friday’s nonfarm payrolls report, leaves market participants with a less complete picture of the U.S. economy’s health at a pivotal time for monetary policy.
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.
