Macro Overview
U.S. stocks mounted a strong recovery on Monday, snapping back from last week’s sell-off as geopolitical tensions eased. A softer tone from the White House regarding trade relations with China renewed investor optimism, sending major indices soaring. The S&P 500 (IVV) surged, posting a significant gain of 1.53%, as investors rotated back into risk assets, particularly in the technology sector, which had been hit hard during the prior week’s downturn.
U.S. Size & Style
Monday’s rally saw a distinct preference for growth-oriented segments, with Large Growth (IVW) stocks leading the charge with a 2.06% gain. The risk-on sentiment was evident across the board as smaller companies also saw strong buying pressure, with Small Value (IJS) notably outperforming and rising 2.31%. This broad-based strength in both growth and small-cap stocks indicates a significant rebound in investor confidence.
| Name (Ticker) | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Small Value (IJS) | +2.31% | 2.31% | -1.46% | 4.97% | 1.04% | 3.41% |
| Mid Growth (IJK) | +2.07% | 2.07% | -1.24% | 3.20% | 5.02% | 2.74% |
| Large Growth (IVW) | +2.06% | 2.06% | 1.57% | 9.19% | 19.32% | 25.18% |
| Small Cap (IJR) | +2.02% | 2.02% | -1.22% | 3.72% | 2.24% | 2.34% |
| Mid Cap (IJH) | +1.96% | 1.96% | -1.64% | 1.98% | 4.45% | 3.70% |
| Mid Value (IJJ) | +1.85% | 1.85% | -2.11% | 0.65% | 3.52% | 4.37% |
| Small Growth (IJT) | +1.77% | 1.77% | -1.10% | 2.47% | 3.32% | 0.96% |
| Large Cap (IVV) | +1.53% | 1.53% | 1.14% | 6.67% | 14.22% | 15.87% |
| Large Value (IVE) | +0.88% | 0.88% | 0.61% | 3.68% | 8.37% | 4.81% |
U.S. Sectors & Industries
The market’s rebound was led by cyclical and tech-related sectors. The Technology (XLK) sector was the standout performer, gaining 2.44%, followed closely by Consumer Discretionary (XLY) which climbed 2.23%. Within these sectors, industries like Semiconductors and Retail showed remarkable strength. On the other end of the spectrum, defensive sectors lagged, with Consumer Staples (XLP) and Health Care (XLV) posting modest losses of -0.33% and -0.11% respectively.
| Sector (Ticker) | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Technology (XLK) | +2.44% | 2.44% | 5.41% | 11.60% | 23.21% | 24.33% |
| Consumer Discretionary (XLY) | +2.23% | 2.23% | -1.83% | 5.80% | 4.92% | 19.97% |
| Materials (XLB) | +1.59% | 1.59% | -3.31% | -3.14% | 6.39% | -6.16% |
| Energy (XLE) | +1.36% | 1.36% | -1.67% | -2.26% | 3.34% | -3.82% |
| Industrials (XLI) | +1.04% | 1.04% | 0.33% | 1.25% | 16.12% | 11.09% |
| Financial (XLF) | +0.96% | 0.96% | -1.80% | 1.29% | 10.08% | 14.87% |
| Communication Services (XLC) | +0.92% | 0.92% | -2.65% | 7.76% | 18.63% | 27.33% |
| Utilities (XLU) | +0.76% | 0.76% | 7.01% | 10.97% | 22.58% | 18.04% |
| Real Estate (XLRE) | +0.57% | 0.57% | -2.67% | -0.84% | 2.90% | -2.61% |
| Health Care (XLV) | -0.11% | -0.11% | 3.25% | 5.48% | 4.55% | -6.12% |
| Consumer Staples (XLP) | -0.33% | -0.33% | -2.41% | -3.01% | 0.91% | -2.09% |
Global Thematic
Thematic ETFs saw a surge in performance, with high-beta themes leading the way. The Crypto Miners (WGMI) theme soared 9.97%, and Tech & Battery Metals (LIT) jumped 7.97%. This indicates a strong appetite for speculative growth areas as market fears receded. Conversely, more defensive or specialized health themes like Genomics & Immunology (ARKG) saw slight losses, declining -0.23%.
| Name (Ticker) | 1-Day % Change |
|---|---|
| Top 5 Performers | |
| VanEck Rare Earth and Strategic Metals ETF (REMX) | +14.03% |
| Global X Hydrogen ETF (HYDR) | +12.54% |
| Sprott Critical Materials ETF (SETM) | +10.03% |
| CoinShares Bitcoin Mining ETF (WGMI) | +9.97% |
| Schwab Crypto Thematic ETF (STCE) | +9.10% |
| Bottom 5 Performers | |
| Tema Electrification ETF (VOLT) | -1.03% |
| Tortoise Essential Energy Fund (TPZ) | -0.24% |
| ARK Genomic Revolution ETF (ARKG) | -0.23% |
| VanEck Environmental Services ETF (EVX) | -0.13% |
| Tema Heart & Health ETF (HRTS) | -0.07% |
Developed Markets ex-U.S.
International developed markets also participated in the global rally. Developed ex-U.S. (EFA) posted a solid 0.80% gain. Asian markets were particularly strong, with South Korea (EWY) surging by an impressive 3.59%. European markets posted more modest gains, while Switzerland (EWL) was a notable laggard, ending the day slightly down with a -0.04% change.
| Country (Ticker) | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| South Korea (EWY) | +3.59% | 3.59% | 6.31% | 15.24% | 64.32% | 35.11% |
| Hong Kong (EWH) | +2.13% | 2.13% | -3.74% | 5.03% | 29.35% | 16.74% |
| Netherlands (EWN) | +1.96% | 1.96% | 5.65% | 6.14% | 31.54% | 17.92% |
| Canada (EWC) | +1.46% | 1.46% | 2.00% | 9.67% | 26.37% | 24.07% |
| Japan (EWJ) | +1.19% | 1.19% | -1.82% | 9.58% | 19.12% | 14.26% |
| Australia (EWA) | +0.83% | 0.83% | -2.13% | 1.14% | 13.44% | 3.85% |
| Dev ex-U.S. (EFA) | +0.80% | 0.80% | -0.01% | 4.53% | 25.10% | 16.50% |
| Germany (EWG) | +0.63% | 0.63% | 1.14% | -1.58% | 33.47% | 27.96% |
| U.K. (EWU) | +0.62% | 0.62% | 0.12% | 5.19% | 26.40% | 19.70% |
| France (EWQ) | +0.14% | 0.14% | -0.32% | 0.16% | 23.55% | 13.53% |
| Switzerland (EWL) | -0.04% | -0.04% | 0.77% | 2.52% | 24.34% | 11.03% |
Emerging Markets
Emerging markets equities posted strong gains, with the broad Emerging (EEM) markets ETF up 2.91%. Performance was driven by stellar results out of Asia and other key regions, with Taiwan (EWT) rallying 4.77% and South Africa (EZA) climbing 4.25%. In contrast, India (INDA) lagged its peers, recording a modest gain of 0.38%.
| Country (Ticker) | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Taiwan (EWT) | +4.77% | 4.77% | 2.75% | 10.74% | 24.73% | 21.02% |
| South Africa (EZA) | +4.25% | 4.25% | 8.98% | 24.59% | 59.36% | 40.53% |
| China (MCHI) | +3.11% | 3.11% | -1.02% | 15.20% | 36.40% | 23.71% |
| Emerging (EEM) | +2.91% | 2.91% | 2.28% | 10.75% | 29.03% | 18.37% |
| Mexico (EWW) | +1.68% | 1.68% | -0.98% | 8.88% | 42.37% | 24.89% |
| Indonesia (EIDO) | +1.50% | 1.50% | -1.46% | -1.68% | -2.37% | -16.32% |
| Malaysia (EWM) | +1.50% | 1.50% | 0.94% | 6.77% | 7.04% | 3.28% |
| Thailand (THD) | +1.46% | 1.46% | -3.28% | 13.82% | -0.02% | -10.85% |
| Brazil (EWZ) | +1.35% | 1.35% | -2.83% | 5.99% | 31.99% | 9.69% |
| India (INDA) | +0.38% | 0.38% | -0.34% | -3.48% | 0.63% | -6.70% |
Fixed Income
The fixed income market saw varied performance as investors weighed the risk-on sentiment in equities. Credit-sensitive assets performed well, with Convertible (CWB) bonds having a stellar day, up 2.20%. Taxable High Yield (HYG) also gained 0.63%. In contrast, long-duration government bonds edged lower, with Government Long (SPTL) dipping by -0.07%.
| Category (Ticker) | 1 Day | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Taxable Core (AGG) | +0.19% | 0.19% | 0.40% | 3.64% | 6.93% | 5.14% |
| Taxable Core Enhanced (IUSB) | +0.21% | 0.21% | 0.40% | 3.53% | 6.96% | 5.40% |
| Taxable Multisector (PYLD) | +0.04% | 0.04% | 0.07% | 3.09% | 7.68% | 7.89% |
| Taxable Ultrashort (BIL) | +0.01% | 0.01% | 0.32% | 1.07% | 3.30% | 4.33% |
| Taxable Short-Term (BSV) | +0.14% | 0.14% | 0.38% | 1.99% | 5.20% | 5.16% |
| Taxable Long Term (BLV) | +0.21% | 0.21% | 0.59% | 6.43% | 8.14% | 3.12% |
| Government Short (SPTS) | +0.00% | 0.00% | 0.39% | 1.62% | 4.17% | 4.65% |
| Government Intermediate (SPTI) | +0.09% | 0.09% | 0.29% | 2.85% | 7.02% | 5.43% |
| Government Long (SPTL) | -0.07% | -0.07% | 0.92% | 6.43% | 7.32% | 1.85% |
| Inflation Protected (TIP) | +0.25% | 0.25% | 0.29% | 3.07% | 7.59% | 5.14% |
| Corporate (SPIB) | +0.18% | 0.18% | 0.25% | 2.81% | 6.98% | 6.28% |
| Taxable High Yield (HYG) | +0.63% | 0.63% | -0.16% | 1.99% | 6.80% | 7.13% |
| Bank Loans (BKLN) | +0.24% | 0.24% | -0.07% | 0.95% | 4.34% | 6.11% |
| Preferred Stock (PFF) | +0.71% | 0.71% | -1.44% | 2.04% | 4.79% | 0.65% |
| Convertible (CWB) | +2.20% | 2.20% | 5.15% | 11.56% | 20.88% | 22.38% |
| Mortgage Backed (MBS) | +0.19% | 0.19% | 0.40% | 3.90% | 7.50% | 5.62% |
| International USD (BNDX) | +0.10% | 0.10% | 0.72% | 1.78% | 3.20% | 3.86% |
| International (IGOV) | -0.19% | -0.19% | -1.13% | -0.35% | 9.79% | 4.40% |
| Emerging USD (EMB) | +0.69% | 0.69% | 0.44% | 5.18% | 11.31% | 9.45% |
| Emerging (EMLC) | +0.32% | 0.32% | -0.14% | 2.38% | 14.81% | 9.03% |
| Municipal Short (SUB) | +0.10% | 0.10% | -0.19% | 0.93% | 3.06% | 3.13% |
| Municipal Intermediate (MUB) | +0.15% | 0.15% | 0.82% | 3.78% | 2.86% | 2.45% |
| Municipal Long (MLN) | +0.48% | 0.48% | 1.74% | 6.45% | 1.49% | 1.30% |
| Municipal High Yield (HYD) | +0.16% | 0.16% | 0.58% | 3.53% | 1.20% | 0.80% |
Commodities
Commodities had a strong session, driven by a surge in precious and industrial metals. The broad Broad Commodities (DJP) index gained 1.50%. Silver (SLV) was a top performer, jumping 4.03%, while Gold (GLD) also posted a solid gain of 2.43%. In contrast, Natural Gas (UNG) continued its slide, falling -1.22%.
| Commodity (Ticker) | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Broad Commodities (DJP) | +1.50% | 1.50% | 2.63% | 2.81% | 11.56% | 10.09% |
| Energy (DBE) | +1.32% | 1.32% | -2.65% | -6.46% | -0.81% | -3.02% |
| Precious Metals (DBP) | +3.16% | 3.16% | 13.53% | 22.76% | 56.31% | 53.68% |
| Industrial Metals (DBB) | +1.49% | 1.49% | 3.63% | 10.23% | 12.10% | 5.39% |
| Agriculture (DBA) | +0.34% | 0.34% | -3.96% | 2.48% | -0.68% | 5.91% |
Cryptocurrency
The cryptocurrency market delivered a mixed performance. Ethereum (ETHA) experienced a significant surge, climbing 6.56%. In contrast, Bitcoin (IBIT), the largest digital asset, saw a minor pullback, ending the day down -0.59%. This divergence highlights shifting sentiment within the digital asset space.
| Asset (Ticker) | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Bitcoin (IBIT) | -0.59% | -0.59% | -0.86% | -2.08% | 24.05% | 83.11% |
| Multi-Coin (NCIQ) | +0.06% | 0.06% | -3.56% | 2.11% | ||
| Solana (SOLZ) | +1.39% | 1.39% | -15.60% | 19.80% | ||
| Ethereum (ETHA) | +6.56% | 6.56% | -8.99% | 41.14% | 27.24% | 72.45% |
What to Watch Today
With most major government economic data releases, including the retail sales report, on hold due to the ongoing government shutdown, investors’ attention will shift squarely to the third-quarter earnings season, which kicks into high gear today. Bellwether reports from companies like Johnson & Johnson (JNJ) and JPMorgan Chase (JPM) will provide the first significant look into corporate health. Johnson & Johnson’s results will offer insights into the defensive healthcare sector, while JPMorgan’s earnings will be closely scrutinized for clues about consumer spending, loan growth, and the overall state of the U.S. economy. These reports will be pivotal in setting the tone for the market in the absence of traditional economic indicators.
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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.
