Macro Overview
U.S. equity markets surged to new record highs on Thursday, propelled by a powerful rally in the technology sector. The catalyst was a landmark collaboration announcement between Nvidia and Intel, which sent chip stocks soaring and lifted broader market sentiment. The S&P 500 (IVV) climbed 0.47%, with the Dow and Nasdaq also closing at all-time highs. The enthusiasm for risk assets was further supported by a better-than-expected weekly jobless claims report, which eased recent concerns about the labor market. This upbeat data presented a contrast to the Federal Reserve’s recent decision to cut interest rates, underscoring the complex economic environment investors are currently navigating.
U.S. Size & Style
Thursday’s session revealed a strong appetite for risk, with small-cap stocks dramatically outperforming their larger counterparts. The Small Cap index (IJR) posted a robust gain of 2.27%, while the large-cap S&P 500 (IVV) rose a more modest 0.47%. Across the board, growth slightly edged out value, with Small-Cap Growth (IJT) leading the charge at +2.31%. This divergence highlights a “risk-on” sentiment, as investors rotated into smaller, higher-growth segments of the market.
| Ticker | 1-Day % Change | 1-Month % Change | 3-Month % Change | YTD % Change | 1-Year % Change |
|---|---|---|---|---|---|
| Large Value (IVE) | +0.34% | 1.81% | 7.99% | 8.31% | 7.08% |
| Large Cap (IVV) | +0.47% | 2.99% | 11.21% | 13.79% | 19.55% |
| Large Growth (IVW) | +0.66% | 3.91% | 14.08% | 18.55% | 30.03% |
| Mid Value (IJJ) | +1.16% | 4.21% | 9.24% | 6.45% | 10.04% |
| Mid Cap (IJH) | +1.27% | 4.18% | 9.77% | 7.12% | 9.24% |
| Mid Growth (IJK) | +1.37% | 4.11% | 10.15% | 7.45% | 8.28% |
| Small Value (IJS) | +2.04% | 6.60% | 16.26% | 4.62% | 7.04% |
| Small Cap (IJR) | +2.27% | 5.65% | 13.92% | 5.80% | 6.68% |
| Small Growth (IJT) | +2.31% | 4.51% | 11.54% | 6.80% | 6.12% |
U.S. Sectors & Industries
The sector landscape was dominated by Technology (XLK), which surged 1.73% on the back of the major chip industry news; the Semiconductor industry ETF (XSD) itself jumped an impressive 4.03%. Industrials (XLI) also had a strong day, gaining 1.07%. In contrast, defensive sectors lagged significantly, with Consumer Staples (XLP) falling 0.87%, indicating a clear shift away from safety and towards growth-oriented areas of the market.
| Ticker | 1-Day % Change | 1-Month % Change | 3-Month % Change | YTD % Change | 1-Year % Change |
|---|---|---|---|---|---|
| Technology (XLK) | +1.73% | 3.70% | 14.47% | 19.15% | 28.01% |
| Industrials (XLI) | +1.07% | 1.14% | 7.73% | 16.63% | 17.51% |
| Health Care (XLV) | +0.20% | 1.16% | 3.67% | 0.79% | -10.02% |
| Financial (XLF) | +0.09% | 3.10% | 8.15% | 12.78% | 21.57% |
| Communication Services (XLC) | +0.08% | 7.33% | 15.21% | 23.49% | 37.07% |
| Real Estate (XLRE) | +0.07% | 2.74% | 1.42% | 5.00% | -3.14% |
| Utilities (XLU) | +0.07% | -0.99% | 5.50% | 13.08% | 10.70% |
| Materials (XLB) | 0.00% | 1.52% | 4.96% | 9.05% | -0.73% |
| Energy (XLE) | -0.31% | 5.48% | 2.70% | 6.42% | 5.41% |
| Consumer Discretionary (XLY) | -0.45% | 4.57% | 14.52% | 7.70% | 25.85% |
| Consumer Staples (XLP) | -0.87% | -2.89% | -0.44% | 2.41% | -1.92% |
Global Thematic
Thematic investing saw a clear preference for high-growth and innovation-focused strategies. The Genomics & Immunology theme (ARKG) led the pack with a remarkable 5.04% gain, followed closely by Cannabis-related ETFs (CNBS) which rose 4.79%. This performance contrasted sharply with themes tied to materials, as Silver Miners (SLVP) experienced the largest decline, falling 1.30%.
| Ticker | Name | 1-Day % Change |
|---|---|---|
| Top 5 Performers | ||
| LFSC | F/M Emerald Life Sciences Innovation ETF | +6.07% |
| ARKG | ARK Genomic Revolution ETF | +5.04% |
| CNBS | Amplify Seymour Cannabis ETF | +4.79% |
| MJ | Amplify Alternative Harvest ETF | +4.18% |
| SBIO | ALPS Medical Breakthroughs ETF | +4.15% |
| Bottom 5 Performers | ||
| ESPO | VanEck Video Gaming and eSports ETF | -0.74% |
| UFO | Procure Space ETF | -0.81% |
| WOOD | iShares Global Timber & Forestry ETF | -0.95% |
| SLVR | Sprott Silver Miners & Physical Silver ETF | -1.19% |
| SLVP | iShares MSCI Global Silver Miners ETF | -1.30% |
Developed Markets ex-U.S.
Developed international markets ended the day with a modest gain, as the broad EFA index rose 0.39%. Performance varied significantly by country, with the Netherlands (EWN) standing out with a strong 1.95% advance. On the other hand, commodity-sensitive markets faced headwinds, as evidenced by Australia (EWA) which finished down 0.92%.
| Ticker | 1-Day % Change | 1-Month % Change | 3-Month % Change | YTD % Change | 1-Year % Change |
|---|---|---|---|---|---|
| Dev ex-U.S. (EFA) | +0.39% | 1.38% | 7.17% | 25.61% | 18.16% |
| Australia (EWA) | -0.92% | 0.19% | 3.98% | 14.42% | 6.15% |
| Canada (EWC) | +0.40% | 5.98% | 10.72% | 25.35% | 26.43% |
| France (EWQ) | +0.71% | 0.67% | 5.21% | 24.95% | 15.22% |
| Germany (EWG) | +0.95% | -2.36% | 2.90% | 32.42% | 29.33% |
| Hong Kong (EWH) | -0.96% | 2.37% | 12.33% | 32.36% | 39.09% |
| Japan (EWJ) | +0.39% | 1.48% | 11.55% | 22.43% | 20.24% |
| Netherlands (EWN) | +1.95% | 7.23% | 9.04% | 29.76% | 18.79% |
| South Korea (EWY) | +1.15% | 10.92% | 18.98% | 58.68% | 30.74% |
| Switzerland (EWL) | -0.14% | 1.58% | 3.68% | 22.41% | 9.97% |
| U.K. (EWU) | -0.31% | 0.90% | 6.22% | 25.41% | 17.34% |
Emerging Markets
Emerging markets experienced a slight pullback on Thursday, with the broad EEM index declining by 0.24%. The performance landscape was highly divergent at the country level. China (MCHI) was a notable laggard, falling 1.60%, while South Africa (EZA) bucked the trend with a solid gain of 1.02%.
| Ticker | 1-Day % Change | 1-Month % Change | 3-Month % Change | YTD % Change | 1-Year % Change |
|---|---|---|---|---|---|
| Emerging (EEM) | -0.24% | 5.77% | 14.01% | 28.26% | 27.24% |
| Brazil (EWZ) | -0.39% | 8.94% | 9.76% | 39.41% | 9.25% |
| China (MCHI) | -1.60% | 7.84% | 20.06% | 39.52% | 61.41% |
| India (INDA) | -0.52% | 0.45% | -0.09% | 2.09% | -6.12% |
| Indonesia (EIDO) | -1.45% | -3.85% | -0.84% | -1.53% | -18.80% |
| Malaysia (EWM) | -1.35% | 1.87% | 8.52% | 6.58% | 0.81% |
| Mexico (EWW) | -0.87% | 7.78% | 11.84% | 43.41% | 26.73% |
| South Africa (EZA) | +1.02% | 7.65% | 18.69% | 48.43% | 38.76% |
| Taiwan (EWT) | +0.89% | 4.47% | 13.81% | 23.20% | 26.59% |
| Thailand (THD) | -1.59% | 6.47% | 21.75% | 2.83% | -5.22% |
Fixed Income
Fixed income markets were generally lower as capital flowed into equities. The core U.S. Aggregate Bond index (AGG) declined by 0.28%. Longer-duration government bonds saw the most pressure amid the risk-on mood, with the long-term Treasury ETF (SPTL) falling 0.88%. In contrast, credit-sensitive areas performed better, as High Yield bonds (HYG) managed a gain of 0.22%.
| Ticker | 1-Day % Change | 1-Month % Change | 3-Month % Change | YTD % Change | 1-Year % Change |
|---|---|---|---|---|---|
| AGG | -0.28% | 1.81% | 3.21% | 6.23% | 2.64% |
| SPTS | -0.07% | 0.64% | 1.56% | 3.80% | 3.90% |
| SPTI | -0.17% | 1.37% | 2.62% | 6.52% | 3.23% |
| SPTL | -0.88% | 3.63% | 4.14% | 5.59% | -4.75% |
| SPIB | -0.03% | 1.36% | 3.22% | 6.75% | 5.30% |
| TIP | -0.28% | 1.82% | 3.19% | 7.12% | 3.95% |
| HYG | +0.22% | 1.51% | 3.61% | 7.33% | 7.72% |
| BKLN | +0.10% | 0.91% | 2.36% | 4.66% | 7.36% |
| MBS | -0.43% | 2.08% | 3.57% | 6.63% | 3.00% |
| IGOV | -0.79% | 1.19% | 1.21% | 11.09% | 2.98% |
| EMLC | -0.27% | 1.89% | 4.72% | 15.42% | 8.39% |
Commodities
The commodity complex faced broad-based selling pressure on Thursday. The diversified commodity index (DJP) fell by 0.51%. Energy markets were notably weak, with Natural Gas (UNG) plunging 3.28% and WTI Crude Oil (USO) down 0.37%. Precious metals were a mixed bag; Gold (GLD) ticked down 0.40%, while Platinum (PPLT) was a bright spot, rallying 1.86%.
| Ticker | 1-Day % Change | 1-Month % Change | 3-Month % Change | YTD % Change | 1-Year % Change |
|---|---|---|---|---|---|
| Broad Commodities (DJP) | -0.51% | 3.91% | -3.01% | 8.60% | 12.97% |
| Energy (DBE) | -0.67% | 2.68% | -6.54% | 3.29% | 10.26% |
| Precious Metals (DBP) | -0.20% | 9.25% | 8.85% | 37.16% | 40.71% |
| Industrial Metals (DBB) | -0.15% | 4.01% | 7.36% | 7.21% | 7.23% |
| Agriculture (DBA) | -0.37% | 0.22% | 1.12% | 1.84% | 9.95% |
Cryptocurrency
The digital asset market caught a bid, mirroring the strength in technology stocks. The flagship Bitcoin ETF (IBIT) rose 1.64%, while the leading Ethereum fund (ETHA) gained 1.61%. The move suggests that the broader risk-on sentiment is benefiting the crypto space as well.
| Ticker | 1-Day % Change | 1-Month % Change | 3-Month % Change | YTD % Change | 1-Year % Change |
|---|---|---|---|---|---|
| Bitcoin (IBIT) | +1.64% | 1.06% | 13.19% | 25.82% | 95.46% |
| Ethereum (ETHA) | +1.61% | 5.34% | 83.95% | 37.33% | 98.00% |
| Multi-Coin (NCIQ) | +1.69% | 1.71% | 22.01% | ||
| Solana (SOLZ) | +3.91% | 33.18% | 64.17% |
What to Watch Today
With no major economic data releases on the calendar, investors’ attention will turn to market mechanics. Today is “Quadruple Witching,” the quarterly event where stock index futures, stock index options, single-stock options, and single-stock futures all expire simultaneously. This convergence often leads to a significant increase in trading volume and can create pockets of volatility, particularly around the market open and close, as traders and institutions adjust, roll over, or close out large derivatives positions. Market direction may be driven more by these technical flows than by fundamental news.
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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.
