Market Mixed as Small Caps Outperform, Precious Metals Plunge

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Macro Overview

U.S. equities finished higher on Tuesday, driven by a rebound in technology and financial stocks as investors grew more optimistic that a resolution to the ongoing government shutdown could be reached. While the benchmark S&P 500 (IVV) was nearly flat with a slight dip of 0.02%, broader market strength was evident. Investor sentiment was also buoyed by strong early sales data for new tech products, which eased concerns about consumer spending resilience in the face of higher borrowing costs. The CBOE Volatility Index (VIX) fell significantly, signaling reduced market anxiety.

U.S. Size & Style

Tuesday’s session was mixed across U.S. size and style segments, with mid and small caps outperforming. Mid-Cap Growth (IJK) led the way with a 0.61% advance. In contrast, large-cap segments showed slight weakness, with Large Cap (IVV) and Large Growth (IVW) posting modest declines of 0.02% and 0.20%, respectively.

Name (Ticker) 1-Day % Change WTD 1 Month 3 Month YTD 1 Year
Large Value (IVE) +0.27% 1.45% 2.15% 6.36% 10.85% 6.92%
Large Cap (IVV) -0.02% 1.01% 1.13% 7.08% 15.63% 16.45%
Large Growth (IVW) -0.20% 0.65% 0.33% 7.70% 19.76% 24.35%
Mid Value (IJJ) +0.12% 1.51% 0.15% 3.62% 5.43% 5.74%
Mid Cap (IJH) +0.38% 1.61% -0.15% 4.26% 6.10% 5.10%
Mid Growth (IJK) +0.61% 1.71% -0.42% 4.72% 6.36% 4.21%
Small Value (IJS) +0.30% 2.01% 0.39% 9.36% 3.86% 5.78%
Small Cap (IJR) +0.28% 1.87% 0.44% 7.73% 5.06% 5.27%
Small Growth (IJT) +0.21% 1.75% 0.50% 6.12% 6.20% 4.36%

U.S. Sectors & Industries

The Consumer Discretionary (XLY) sector was the day’s top performer, jumping 1.22%, buoyed by optimism around consumer spending. Industrials also posted strong results. On the downside, defensive sectors like Utilities (XLU) and Consumer Staples (XLP) lagged, falling 1.02% and 0.46% respectively. Within industries, Homebuilders and Aerospace & Defense were notable standouts.

Sector (Ticker) 1-Day % Change WTD 1 Month 3 Month YTD 1 Year
Consumer Discretionary (XLY) +1.22% 2.03% -0.74% 7.34% 7.30% 21.84%
Industrials (XLI) +0.89% 2.08% 1.57% 3.22% 18.74% 13.30%
Communication Services (XLC) +0.35% 1.49% -1.97% 8.78% 21.56% 29.84%
Health Care (XLV) +0.23% 1.30% 6.19% 11.22% 6.89% -2.39%
Technology (XLK) +0.05% 1.17% 3.51% 10.52% 24.58% 25.07%
Financials (XLF) -0.11% 1.05% -2.48% 0.98% 10.23% 13.25%
Energy (XLE) -0.23% 0.83% -1.23% 2.77% 3.71% -0.54%
Real Estate (XLRE) -0.31% 0.74% 1.96% 1.60% 6.53% -0.07%
Materials (XLB) -0.38% 0.81% -2.00% -1.84% 6.82% -6.74%
Consumer Staples (XLP) -0.46% -0.55% 0.58% -1.29% 2.79% -0.16%
Utilities (XLU) -1.02% -1.05% 7.37% 8.56% 22.20% 14.24%

Global Thematic

Thematic ETFs saw dramatic divergence. Cloud Computing themes like WisdomTree Cloud Computing Fund (WCLD) soared, gaining 1.98%. Conversely, it was a brutal day for precious metals miners, with Global X Silver Miners ETF (SIL) and Gold Miners (GDX) plummeting 10.86% and 9.42% respectively, following a sharp drop in metals prices.

Developed Markets ex-U.S.

International developed markets were broadly negative on Tuesday. Developed ex-U.S. (EFA) declined 0.73%. Major economies like Japan (EWJ) and Canada (EWC) saw significant losses, while European markets posted more moderate declines.

Country (Ticker) 1-Day % Change WTD 1 Month 3 Month YTD 1 Year
Dev ex-U.S. (EFA) -0.73% 0.08% 1.71% 6.48% 27.26% 20.46%
Australia (EWA) -0.55% 0.71% 0.82% 2.81% 15.35% 6.77%
Canada (EWC) -1.44% -0.58% -1.46% 7.02% 24.87% 22.10%
France (EWQ) -0.49% -0.55% 2.98% 4.53% 28.20% 19.74%
Germany (EWG) -0.45% 0.75% 1.14% -1.72% 33.18% 28.58%
Hong Kong (EWH) -0.51% 0.57% -0.75% 4.10% 30.64% 24.09%
Japan (EWJ) -1.16% 0.70% 2.20% 13.72% 24.05% 22.58%
Netherlands (EWN) -0.85% -0.51% 2.66% 9.25% 32.90% 24.10%
South Korea (EWY) -1.98% 0.14% 10.73% 19.99% 74.18% 47.41%
Switzerland (EWL) -0.99% -1.16% 3.35% 4.77% 26.63% 14.02%
U.K. (EWU) -0.47% -0.26% 1.45% 4.87% 26.31% 19.25%

Emerging Markets

Emerging markets were mostly lower, with the broad Emerging (EEM) index down 1.11%. South Africa (EZA) was a significant underperformer, sliding 4.44%. However, Indonesia (EIDO) bucked the trend, rallying an impressive 1.96%.

Country (Ticker) 1-Day % Change WTD 1 Month 3 Month YTD 1 Year
Emerging (EEM) -1.11% 0.24% 2.45% 9.94% 31.11% 22.28%
Brazil (EWZ) -0.93% 0.77% -3.20% 10.56% 35.43% 13.14%
China (MCHI) -1.06% 0.21% -1.55% 9.74% 36.70% 30.79%
India (INDA) -0.47% 0.06% 1.00% -0.49% 3.50% -2.32%
Indonesia (EIDO) +1.96% 5.03% 2.14% 2.48% 0.97% -15.66%
Malaysia (EWM) -0.31% 0.16% 0.59% 7.12% 7.16% 3.88%
Mexico (EWW) -1.32% -1.60% -1.56% 9.84% 41.50% 27.75%
South Africa (EZA) -4.44% -3.27% 1.17% 13.59% 52.75% 33.77%
Taiwan (EWT) -0.59% 1.06% 3.79% 10.82% 27.09% 20.85%
Thailand (THD) -0.89% 0.56% -3.13% 4.76% -0.05% -10.49%

Fixed Income

The fixed income markets were mixed. Long-duration government bonds, represented by Government Long (SPTL), gained 0.44% as yields ticked lower. In contrast, higher-risk segments like Taxable High Yield (HYG) and Convertible (CWB) fell, declining 0.15% and 0.79% respectively.

Category (Ticker) 1 Day WTD 1 Month 3 Month YTD 1 Year
Taxable Core (AGG) +0.10% 0.27% 1.26% 3.92% 7.58% 6.49%
Taxable Core Enhanced (IUSB) +0.06% 0.21% 1.17% 3.74% 7.55% 6.65%
Taxable Multisector (PYLD) +0.15% 0.37% 0.82% 3.63% 8.56% 8.94%
Taxable Ultrashort (BIL) 0.00% 0.02% 0.30% 1.02% 3.37% 4.29%
Taxable Short-Term (BSV) +0.05% 0.05% 0.59% 1.95% 5.44% 5.61%
Taxable Long Term (BLV) +0.29% 0.68% 2.64% 7.35% 9.58% 6.10%
Government Short (SPTS) +0.07% 0.03% 0.53% 1.62% 4.39% 4.97%
Government Intermediate (SPTI) +0.10% 0.17% 0.97% 2.90% 7.48% 6.25%
Government Long (SPTL) +0.44% 0.80% 3.24% 7.54% 8.86% 4.82%
Inflation Protected (TIP) +0.21% 0.30% 0.70% 2.67% 7.82% 6.24%
Corporate (SPIB) 0.00% 0.15% 0.60% 2.81% 7.42% 7.11%
Taxable High Yield (HYG) -0.15% 0.05% -0.15% 1.97% 7.21% 7.67%
Bank Loans (BKLN) -0.05% 0.19% -0.07% 1.05% 4.59% 6.09%
Preferred Stock (PFF) -0.09% 0.70% -1.03% 3.21% 5.72% 1.95%
Convertible (CWB) -0.79% 0.01% 1.93% 8.81% 19.80% 21.25%
Mortgage Backed (MBB) +0.17% 0.25% 1.33% 4.40% 8.24% 7.27%
International USD (BNDX) +0.08% 0.16% 1.21% 1.73% 3.65% 4.23%
International (IGOV) -0.21% -0.23% -0.05% 0.07% 10.70% 6.28%
Emerging USD (EMB) +0.12% 0.56% 1.79% 5.73% 12.48% 11.35%
Emerging (EMLC) -0.43% -0.24% -0.09% 2.46% 15.35% 11.26%
Municipal Short (SUB) -0.02% -0.21% -0.31% 0.68% 2.82% 3.12%
Municipal Intermediate (MUB) +0.07% 0.15% 1.32% 4.73% 3.41% 3.24%
Municipal Long (MLN) 0.00% 0.03% 1.82% 7.96% 2.00% 1.98%
Municipal High Yield (HYD) +0.06% 0.18% 0.78% 5.42% 1.76% 1.59%

Commodities

It was a bloodbath in the precious metals space. Gold (GLD) plunged 6.43% and Silver (SLV) plummeted 8.24%. In contrast, energy markets showed strength, with Natural Gas (UNG) rising 1.70%.

Commodity (Ticker) 1-Day % Change WTD 1 Month 3 Month YTD 1 Year
Broad Commodities (DJP) -1.83% 0.19% 3.63% 2.48% 12.00% 13.05%
WTI Crude Oil (USO) +0.65% 0.43% -7.14% -9.68% -9.64% -5.52%
Brent Crude Oil (BNO) +0.65% 0.22% -6.78% -7.88% -6.74% -4.64%
Natural Gas (UNG) +1.70% 10.78% 4.61% -10.42% -21.77% -0.75%
Gold (GLD) -6.43% -3.02% 11.22% 20.47% 55.80% 50.16%
Silver (SLV) -8.24% -6.81% 12.17% 23.88% 66.31% 41.94%

Cryptocurrency

The digital asset space saw positive momentum, with Bitcoin (IBIT) up 0.89%. Solana (SOLZ) was a standout performer, rallying 2.98% for the session.

Asset (Ticker) 1-Day % Change WTD 1 Month 3 Month YTD 1 Year
Ethereum (ETHA) +0.46% 4.63% -9.80% 6.92% 19.73% 49.09%
Bitcoin (IBIT) +0.89% 4.99% -2.88% -4.28% 19.68% 64.61%
Multi-Coin (NCIQ) +0.91% 4.85% -5.45% -3.74%
Solana (SOLZ) +2.98% 6.74% -18.91% -6.01%

What to Watch Today

Investors will be closely watching the release of Existing Home Sales data for September, scheduled for 10:00 AM ET. This report is a key indicator of the health of the housing market and provides insight into broader economic strength. A higher-than-expected number could be seen as positive for the economy, potentially influencing the Federal Reserve’s thinking on interest rates, while a lower number could signal a slowdown. Given the recent moderation in mortgage rates, the market will be keen to see if housing activity is stabilizing or picking up momentum.

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.