Macro Overview
U.S. equity markets demonstrated remarkable resilience during the last session, defying concerns over the ongoing government shutdown to push major indices to record highs. Investors appear to be looking past the political stalemate in Washington, instead focusing on the prospect of future interest rate cuts by the Federal Reserve and sustained momentum in the artificial intelligence sector. The S&P 500 (IVV) finished the day nearly flat, with a slight dip of -0.01%, but the broader market narrative was one of optimism, suggesting that underlying economic and technological trends are currently outweighing short-term political disruptions.
U.S. Size & Style
Friday’s session highlighted a rotation in leadership, with value and smaller-cap stocks outperforming their growth and large-cap counterparts. Small-Cap Value (IJS) was the standout performer, gaining 0.66%, indicating a broadening of the market rally. Conversely, Large-Cap Growth (IVW) lagged, posting a loss of -0.28%. This shift suggests investors may be seeking opportunities beyond the mega-cap tech names that have led the market for much of the year, a positive sign for overall market health.
| Ticker | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Large Value (IVE) | +0.39% | 1.15% | 3.02% | 5.06% | 10.24% | 8.30% |
| Large Cap (IVV) | -0.01% | 1.13% | 4.26% | 7.37% | 15.28% | 19.38% |
| Large Growth (IVW) | -0.28% | 1.09% | 5.35% | 9.39% | 19.64% | 28.52% |
| Mid Value (IJJ) | +0.48% | 0.99% | 1.59% | 2.89% | 6.22% | 9.44% |
| Mid Cap (IJH) | +0.31% | 0.66% | 1.83% | 3.44% | 6.52% | 8.05% |
| Mid Growth (IJK) | +0.21% | 0.47% | 2.04% | 3.85% | 6.58% | 6.50% |
| Small Value (IJS) | +0.66% | 1.89% | 3.92% | 8.76% | 4.76% | 9.30% |
| Small Cap (IJR) | +0.45% | 1.36% | 3.01% | 6.59% | 5.31% | 7.39% |
| Small Growth (IJT) | +0.23% | 0.91% | 2.09% | 4.67% | 5.89% | 5.22% |
U.S. Sectors & Industries
A mix of defensive and cyclical sectors led the market higher, underscoring the day’s rotational theme. Utilities (XLU) and Health Care (XLV) were the top performers, climbing 1.16% and 1.14%, respectively. Within Health Care, Equipment manufacturers (XHE) were particularly strong with a 1.87% advance. At the other end of the spectrum, Technology (XLK) and Consumer Discretionary (XLY) sectors lagged, falling -0.50% and -0.64%, taking a breather after a period of strong performance.
| Sector | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Utilities (XLU) | +1.16% | 2.42% | 6.77% | 9.36% | 19.91% | 12.36% |
| Health Care (XLV) | +1.14% | 6.88% | 6.26% | 7.37% | 6.66% | -2.72% |
| Financial (XLF) | +0.69% | -0.26% | 0.74% | 1.33% | 12.30% | 21.42% |
| Energy (XLE) | +0.53% | -3.35% | 1.33% | 3.03% | 6.37% | -0.48% |
| Real Estate (XLRE) | +0.41% | 0.48% | 2.22% | 1.43% | 5.85% | -0.69% |
| Materials (XLB) | +0.17% | 1.15% | -0.75% | -1.19% | 8.35% | -3.24% |
| Industrials (XLI) | +0.14% | 1.20% | 3.50% | 3.76% | 18.38% | 16.49% |
| Consumer Staples (XLP) | +0.12% | 0.09% | -2.50% | -4.39% | 1.16% | -1.32% |
| Communication Services (XLC) | -0.05% | -1.51% | 3.31% | 8.11% | 21.29% | 30.98% |
| Technology (XLK) | -0.50% | 2.11% | 9.08% | 10.94% | 23.02% | 28.59% |
| Consumer Discretionary (XLY) | -0.64% | -0.77% | 3.18% | 7.72% | 6.71% | 22.64% |
Global Thematic
Thematic ETFs saw significant divergence. Clean energy themes surged, with the Global X Hydrogen ETF (HYDR) soaring an incredible 11.55%. In stark contrast, Uranium Miners (URNM) experienced a sharp sell-off, dropping -2.15%. This wide performance gap highlights how specific industry news and trends can drive outcomes in thematic investing, independent of broader market movements.
| Top 5 / Bottom 5 Thematic Performers | ||
|---|---|---|
| Ticker | Name | 1-Day % Change |
| HYDR | Global X Hydrogen ETF | +11.55% |
| REMX | VanEck Rare Earth and Strategic Metals ETF | +5.77% |
| WGMI | CoinShares Bitcoin Mining ETF | +3.66% |
| PBW | Invesco WilderHill Clean Energy ETF | +3.42% |
| ACES | ALPS Clean Energy ETF | +2.72% |
| PBDC | Putnam BDC Income ETF | -1.22% |
| MSOS | AdvisorShares Pure US Cannabis ETF | -1.34% |
| CNBS | Amplify Seymour Cannabis ETF | -1.86% |
| URNJ | Sprott Junior Uranium Miners ETF | -2.12% |
| URNM | Sprott Uranium Miners ETF | -2.15% |
Developed Markets ex-U.S.
International developed markets showed broad strength, led by a significant rally in Japan. The Japan ETF (EWJ) surged 2.03% as markets reacted positively to the election of a new, fiscally hawkish prime minister. Other markets like Canada (EWC) and the U.K. (EWU) also posted solid gains, while Germany (EWG) was a notable laggard with a slight loss of -0.09%.
| Country | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Japan (EWJ) | +2.03% | 1.67% | 4.94% | 9.62% | 22.86% | 18.02% |
| Canada (EWC) | +1.28% | 2.44% | 4.85% | 9.79% | 28.00% | 26.21% |
| Australia (EWA) | +0.92% | 2.85% | 3.12% | 3.59% | 16.71% | 6.33% |
| U.K. (EWU) | +0.90% | 2.55% | 3.55% | 7.08% | 28.36% | 20.63% |
| Switzerland (EWL) | +0.73% | 4.42% | 2.87% | 3.21% | 25.63% | 13.30% |
| South Korea (EWY) | +0.38% | 6.31% | 15.00% | 15.34% | 64.77% | 36.97% |
| France (EWQ) | +0.31% | 3.03% | 5.57% | 4.25% | 28.00% | 18.43% |
| Netherlands (EWN) | +0.18% | 4.38% | 14.17% | 9.82% | 35.80% | 21.88% |
| Germany (EWG) | -0.09% | 2.99% | 3.36% | 0.52% | 35.55% | 31.14% |
| Hong Kong (EWH) | -0.19% | 2.13% | 1.99% | 6.89% | 32.17% | 15.37% |
Emerging Markets
Emerging markets performance was mixed, with country-specific factors driving returns. South Africa (EZA) was a top performer with a gain of 1.32%, and Taiwan (EWT) also climbed a solid 1.00%. However, China (MCHI) continued to face headwinds, ending the day down -0.66%, which weighed on the broader emerging market index performance.
| Country | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| South Africa (EZA) | +1.32% | 2.78% | 12.76% | 18.74% | 57.07% | 39.35% |
| Thailand (THD) | +1.02% | 1.08% | 2.51% | 14.88% | 1.83% | -7.33% |
| Taiwan (EWT) | +1.00% | 3.03% | 10.06% | 8.75% | 24.88% | 24.42% |
| Brazil (EWZ) | +0.30% | -1.30% | 4.62% | 3.48% | 37.19% | 10.50% |
| India (INDA) | +0.29% | 0.38% | -0.32% | -5.99% | -0.36% | -7.84% |
| Indonesia (EIDO) | -0.06% | -0.97% | -2.13% | -0.23% | -3.14% | -17.59% |
| Mexico (EWW) | -0.13% | -0.49% | 6.39% | 8.28% | 45.28% | 30.09% |
| Malaysia (EWM) | -0.27% | 1.83% | 5.35% | 7.33% | 9.08% | 3.88% |
| China (MCHI) | -0.66% | 3.47% | 8.51% | 21.62% | 43.40% | 24.51% |
Fixed Income
The fixed income market saw mixed results as investors balanced risk-on sentiment with underlying economic uncertainty. Credit-sensitive assets like Convertible bonds (CWB) saw gains of 0.14%, while longer-duration government bonds felt pressure, with the Long-Term Treasury ETF (SPTL) declining by -0.30%. The core aggregate bond index (AGG) posted a modest loss of -0.11% for the day.
| Ticker | 1 Day | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Taxable Core (AGG) | -0.11% | 0.43% | 1.29% | 2.75% | 6.46% | 3.52% |
| Taxable Core Enhanced (IUSB) | -0.09% | 0.47% | 1.27% | 2.77% | 6.57% | 3.92% |
| Taxable Multisector (PYLD) | -0.07% | 0.34% | 1.20% | 2.94% | 7.76% | 7.24% |
| Taxable Ultrashort (BIL) | +0.02% | 0.07% | 0.35% | 1.03% | 3.20% | 4.35% |
| Taxable Short-Term (BSV) | -0.05% | 0.27% | 0.39% | 1.68% | 4.91% | 4.34% |
| Taxable Long Term (BLV) | -0.14% | 0.90% | 3.26% | 4.15% | 7.29% | -0.14% |
| Government Short (SPTS) | +0.03% | 0.26% | 0.43% | 1.45% | 4.00% | 4.19% |
| Government Intermediate (SPTI) | -0.17% | 0.38% | 0.41% | 2.16% | 6.52% | 3.74% |
| Government Long (SPTL) | -0.30% | 0.74% | 3.05% | 3.74% | 5.98% | -2.36% |
| Inflation Protected (TIP) | -0.11% | 0.12% | 0.40% | 2.36% | 6.88% | 3.82% |
| Corporate (SPIB) | -0.12% | 0.40% | 0.93% | 2.45% | 6.86% | 5.49% |
| Taxable High Yield (HYG) | -0.11% | 0.17% | 0.76% | 2.05% | 7.32% | 7.49% |
| Bank Loans (BKLN) | +0.10% | 0.19% | 0.69% | 1.58% | 4.84% | 7.39% |
| Preferred Stock (PFF) | +0.09% | 0.44% | 1.76% | 4.04% | 6.16% | 1.90% |
| Convertible (CWB) | +0.14% | 2.96% | 7.44% | 11.31% | 19.86% | 23.32% |
| Mortgage Backed (MBS) | -0.16% | 0.46% | 1.57% | 3.22% | 7.08% | 4.13% |
| International USD (BNDX) | 0.00% | 0.25% | 0.76% | 0.73% | 2.68% | 2.88% |
| International (IGOV) | -0.05% | 0.59% | 1.16% | -1.02% | 10.85% | 3.88% |
| Emerging USD (EMB) | +0.04% | 0.39% | 1.97% | 4.27% | 11.23% | 8.43% |
| Emerging (EMLC) | +0.20% | 0.38% | 1.61% | 2.17% | 15.31% | 8.63% |
| Municipal Short (SUB) | +0.04% | 0.14% | 0.10% | 1.01% | 2.97% | 2.83% |
| Municipal Intermediate (MUB) | +0.02% | 0.38% | 2.34% | 2.85% | 2.26% | 1.20% |
| Municipal Long (MLN) | +0.14% | 0.64% | 4.23% | 4.74% | 0.51% | -0.62% |
| Municipal High Yield (HYD) | +0.02% | 0.44% | 2.91% | 2.28% | 0.99% | 0.13% |
Commodities
Precious metals found a bid amidst the political uncertainty, with Silver (SLV) leading the complex higher with a strong 2.33% gain. Gold (GLD) also rose 0.80%. The energy sector was bifurcated; WTI Crude Oil (USO) saw a modest gain of 0.24%, but Natural Gas (UNG) prices tumbled -2.97%.
| Commodity | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Silver (SLV) | +2.33% | 3.97% | 16.55% | 29.87% | 65.29% | 48.89% |
| Gold (GLD) | +0.80% | 3.14% | 8.99% | 16.44% | 47.71% | 45.68% |
| WTI Crude Oil (USO) | +0.24% | -6.89% | -4.17% | -4.63% | -5.08% | -5.31% |
| Agriculture (DBA) | -0.04% | -1.15% | -2.38% | 3.01% | 0.30% | 8.67% |
| Natural Gas (UNG) | -2.97% | 4.65% | -0.08% | -14.43% | -22.37% | -21.76% |
Cryptocurrency
The digital asset space continued its upward trend, with market participants increasingly citing Bitcoin as a safe-haven asset amid the government shutdown. The leading Bitcoin ETF (IBIT) rallied 1.51%, reaching new highs. Ethereum (ETHA) also posted a respectable gain of 0.62%, while Solana (SOLZ) was the laggard in the group, finishing down -0.08%.
| Asset | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Solana (SOLZ) | -0.08% | 15.34% | 8.99% | 47.38% | ||
| Ethereum (ETHA) | +0.62% | 12.48% | 1.15% | 75.78% | 35.47% | 92.15% |
| Multi-Coin (NCIQ) | +1.26% | 12.45% | 7.71% | 19.52% | ||
| Bitcoin (IBIT) | +1.51% | 12.71% | 9.47% | 12.25% | 31.59% | 101.07% |
What to Watch Today
With the U.S. government shutdown delaying key domestic economic reports, investors will be paying closer attention to international data for clues on global economic health. Today, the key release will be the Eurozone Retail Sales figures for August. This data provides a timely read on consumer spending in the bloc and will be watched for any signs of slowing momentum. While a single data point won’t shift the narrative, a significant surprise could influence currency markets and sentiment towards European equities as the week begins.
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.
