Macro Overview
U.S. equity markets finished Wednesday’s session in the red, as disappointing earnings from key technology and media companies overshadowed positive reports elsewhere. The S&P 500 (IVV) declined -0.48%, while the tech-heavy Nasdaq saw steeper losses. The primary driver was a significant miss from Netflix, which tumbled after reporting a large one-time tax expense, and a negative after-hours reaction to Tesla’s results. This weakness in mega-cap names offset strength in sectors like Energy and Consumer Staples. Investors are now turning their attention to a busy economic data calendar today, headlined by the weekly Initial Jobless Claims report.
U.S. Size & Style
The risk-off sentiment was evident across size and style, with smaller capitalization stocks underperforming their large-cap peers. Mid Cap (IJH) fell -1.18% and Small Cap (IJR) dropped -0.73%, both lagging the S&P 500. Within large-caps, Large Value (IVE) provided a relative safe haven, declining only -0.47%, while Large Growth (IVW) fell -0.58%, dragged down by the weakness in tech.
| Name (Ticker) | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Large Value (IVE) | -0.47% | 0.97% | 1.47% | 5.03% | 10.33% | 6.66% |
| Large Cap (IVV) | -0.48% | 0.52% | 0.16% | 6.56% | 15.07% | 15.98% |
| Large Growth (IVW) | -0.58% | 0.07% | -0.96% | 7.71% | 19.07% | 23.52% |
| Mid Value (IJJ) | -0.91% | 0.59% | -0.66% | 1.12% | 4.47% | 5.16% |
| Mid Cap (IJH) | -1.18% | 0.42% | -1.30% | 1.67% | 4.85% | 4.56% |
| Mid Growth (IJK) | -1.38% | 0.31% | -1.88% | 2.13% | 4.89% | 3.77% |
| Small Value (IJS) | -0.47% | 1.53% | -0.12% | 7.13% | 3.38% | 5.73% |
| Small Cap (IJR) | -0.73% | 1.12% | -0.55% | 5.79% | 4.29% | 5.12% |
| Small Growth (IJT) | -0.95% | 0.78% | -0.88% | 4.55% | 5.20% | 4.16% |
U.S. Sectors & Industries
Sector performance diverged significantly, reflecting the day’s narrative. Energy (XLE) led all sectors with a +1.28% gain, followed by defensive plays in Health Care (XLV) (+0.57%) and Consumer Staples (XLP) (+0.57%). The laggards were concentrated in growth and cyclical areas, with Industrials (XLI) falling -1.30% and Technology (XLK) shedding -0.99%. At the industry level, Semiconductors (-3.76%) and Aerospace & Defense (-2.59%) saw significant pullbacks, while Oil & Gas Equipment & Services (+1.01%) posted strong gains.
| Sector (Ticker) | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Energy (XLE) | +1.28% | 2.12% | 0.15% | 3.60% | 5.04% | 0.50% |
| Health Care (XLV) | +0.57% | 1.88% | 6.83% | 9.81% | 7.50% | -1.69% |
| Consumer Staples (XLP) | +0.57% | 0.01% | 2.28% | -1.63% | 3.38% | -0.15% |
| Real Estate (XLRE) | +0.45% | 1.19% | 2.09% | 0.31% | 7.00% | 0.21% |
| Utilities (XLU) | -0.23% | -1.28% | 6.10% | 7.00% | 21.92% | 14.38% |
| Materials (XLB) | -0.30% | 0.50% | -2.27% | -3.47% | 6.50% | -6.16% |
| Financial (XLF) | -0.57% | 0.48% | -2.91% | -0.15% | 9.60% | 12.82% |
| Consumer Discretionary (XLY) | -0.78% | 1.23% | -1.20% | 5.43% | 6.46% | 21.37% |
| Communication Services (XLC) | -0.87% | 0.61% | -2.48% | 7.59% | 20.51% | 28.53% |
| Technology (XLK) | -0.99% | 0.17% | 1.00% | 10.45% | 23.35% | 23.96% |
| Industrials (XLI) | -1.30% | 0.75% | -0.08% | 1.64% | 17.20% | 13.20% |
Global Thematic
Thematic performance clearly highlighted the day’s bearish sentiment toward technology and digital assets. Crypto-related themes were the worst performers, with Schwab Crypto Thematic (STCE) and Crypto Miners (WGMI) plummeting -8.70% and -8.37%, respectively. Conversely, themes tied to hard assets performed well, led by Sprott Junior Uranium Miners (URNJ) (+3.92%) and Silver Miners (SIL) (+1.12%).
| Top 5 Performers (1-Day) | 1-Day % Change |
|---|---|
| Sprott Junior Uranium Miners (URNJ) | +3.92% |
| Sprott Uranium Miners (URNM) | +3.22% |
| VanEck Energy Income (EINC) | +1.22% |
| Global X Silver Miners (SIL) | +1.12% |
| ProShares Pet Care (PAWZ) | +1.11% |
| Bottom 5 Performers (1-Day) | 1-Day % Change |
| Schwab Crypto Thematic (STCE) | -8.70% |
| CoinShares Bitcoin Mining (WGMI) | -8.37% |
| Global X Blockchain (BKCH) | -8.26% |
| VanEck Digital Transformation (DAPP) | -7.10% |
| Bitwise Crypto Industry Innovators (BITQ) | -6.86% |
Developed Markets ex-U.S.
Developed international markets were mixed but finished relatively flat, with the broad Dev ex-U.S. (EFA) index down just -0.15%. The U.K. (EWU) was a notable bright spot, gaining +1.07%, as was South Korea (EWY), which rose +0.91%. Hong Kong (EWH) was the primary laggard, falling -1.31%.
| Country (Ticker) | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Dev ex-U.S. (EFA) | -0.15% | -0.06% | 1.23% | 5.74% | 27.07% | 20.97% |
| Australia (EWA) | -0.15% | 0.56% | 0.56% | 1.96% | 15.18% | 6.90% |
| Canada (EWC) | +0.42% | -0.16% | -1.34% | 6.60% | 25.40% | 22.46% |
| France (EWQ) | -0.16% | -0.71% | 2.58% | 4.05% | 28.00% | 19.81% |
| Germany (EWG) | -0.60% | 0.14% | 0.48% | -2.31% | 32.38% | 28.51% |
| Hong Kong (EWH) | -1.31% | -0.76% | -1.64% | 1.25% | 28.92% | 21.78% |
| Japan (EWJ) | -0.47% | 0.22% | 1.14% | 12.61% | 23.46% | 23.63% |
| Netherlands (EWN) | -0.39% | -0.90% | 1.32% | 8.90% | 32.38% | 23.84% |
| South Korea (EWY) | +0.91% | 1.05% | 9.67% | 22.72% | 75.77% | 50.49% |
| Switzerland (EWL) | +0.05% | -1.11% | 2.83% | 3.97% | 26.69% | 14.89% |
| U.K. (EWU) | +1.07% | 0.81% | 1.92% | 4.90% | 27.66% | 20.86% |
Emerging Markets
Emerging markets also ended the day nearly unchanged, with the Emerging (EEM) index ticking down -0.09%. Performance was highly dispersed by country. India (INDA) posted a strong +1.49% gain, continuing its recent outperformance. In contrast, Indonesia (EIDO) fell -1.54%, and China (MCHI) slipped -0.65%.
| Country (Ticker) | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Emerging (EEM) | -0.09% | 0.15% | 1.86% | 9.77% | 30.99% | 22.43% |
| Brazil (EWZ) | +0.30% | 1.08% | -2.47% | 11.22% | 35.84% | 13.76% |
| China (MCHI) | -0.65% | -0.44% | -2.17% | 7.44% | 35.82% | 28.71% |
| India (INDA) | +1.49% | 1.54% | 3.35% | 1.25% | 5.03% | 0.19% |
| Indonesia (EIDO) | -1.54% | 3.41% | 0.90% | 1.88% | -0.59% | -16.62% |
| Malaysia (EWM) | -1.05% | -0.89% | -1.24% | 6.17% | 6.04% | 2.75% |
| Mexico (EWW) | +0.68% | -0.94% | -2.08% | 10.98% | 42.45% | 29.29% |
| South Africa (EZA) | +0.49% | -2.80% | 1.79% | 14.07% | 53.50% | 33.97% |
| Taiwan (EWT) | -1.14% | -0.09% | 1.58% | 10.75% | 25.64% | 18.90% |
| Thailand (THD) | +0.97% | 1.53% | -1.68% | 6.77% | 0.91% | -8.47% |
Fixed Income
Fixed income markets were quiet as investors awaited today’s economic data. The Taxable Core (AGG) was flat at -0.01%. The spillover from equity weakness was most apparent in Convertible (CWB) bonds, which fell -1.34%. Preferred Stock (PFF) also declined, losing -0.54%.
| Category (Ticker) | 1 Day | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| International (IGOV) | +0.21% | -0.02% | -0.07% | -0.35% | 10.93% | 6.54% |
| Inflation Protected (TIP) | +0.16% | 0.47% | 1.11% | 2.74% | 7.99% | 6.27% |
| Bank Loans (BKLN) | +0.14% | 0.34% | 0.00% | 1.15% | 4.74% | 6.25% |
| Municipal High Yield (HYD) | +0.14% | 0.31% | 1.07% | 5.59% | 1.90% | 2.17% |
| Taxable Long Term (BLV) | +0.11% | 0.79% | 3.09% | 7.03% | 9.70% | 6.19% |
| Government Long (SPTL) | +0.07% | 0.87% | 3.67% | 7.08% | 8.94% | 4.85% |
| International USD (BNDX) | +0.06% | 0.22% | 1.27% | 1.71% | 3.72% | 4.34% |
| Emerging (EMLC) | +0.04% | -0.20% | -0.17% | 2.25% | 15.40% | 11.49% |
| Government Intermediate (SPTI) | +0.03% | 0.21% | 1.11% | 2.75% | 7.52% | 6.40% |
| Government Short (SPTS) | +0.03% | 0.07% | 0.56% | 1.62% | 4.42% | 5.01% |
| Taxable Ultrashort (BIL) | +0.02% | 0.04% | 0.31% | 1.03% | 3.39% | 4.30% |
| Taxable Core Enhanced (IUSB) | +0.02% | 0.23% | 1.33% | 3.56% | 7.57% | 6.67% |
| Municipal Intermediate (MUB) | +0.02% | 0.17% | 1.32% | 4.68% | 3.43% | 3.53% |
| Taxable Short-Term (BSV) | 0.00% | 0.05% | 0.65% | 1.86% | 5.44% | 5.61% |
| Municipal Long (MLN) | 0.00% | 0.03% | 1.82% | 7.96% | 2.00% | 2.35% |
| Corporate (SPIB) | 0.00% | 0.15% | 0.69% | 2.65% | 7.42% | 7.17% |
| Taxable Core (AGG) | -0.01% | 0.26% | 1.38% | 3.71% | 7.57% | 6.46% |
| Municipal Short (SUB) | -0.03% | -0.23% | -0.31% | 0.65% | 2.80% | 3.04% |
| Taxable Multisector (PYLD) | -0.04% | 0.34% | 0.90% | 3.43% | 8.52% | 9.07% |
| Mortgage Backed (MBS) | -0.07% | 0.18% | 1.46% | 4.03% | 8.16% | 7.16% |
| Taxable High Yield (HYG) | -0.10% | -0.05% | -0.32% | 1.69% | 7.10% | 7.71% |
| Emerging USD (EMB) | -0.21% | 0.36% | 1.35% | 5.33% | 12.24% | 11.37% |
| Preferred Stock (PFF) | -0.54% | 0.16% | -1.41% | 2.59% | 5.15% | 0.97% |
| Convertible (CWB) | -1.34% | -1.33% | 0.17% | 6.95% | 18.20% | 19.60% |
Commodities
Commodities were a bright spot, with the Broad Commodities (DJP) index up +0.64%. Energy was the clear leader, as WTI Crude Oil (USO) surged +3.46%. Precious metals also rallied, led by a +5.64% spike in Platinum (PPLT), while Gold (GLD) was nearly flat.
| Commodity (Ticker) | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Broad Commodities (DJP) | +0.64% | 0.83% | 4.21% | 3.00% | 12.71% | 12.09% |
| Energy (DBE) | +2.51% | 3.32% | -1.22% | -3.93% | 0.22% | 1.91% |
| WTI Crude Oil (USO) | +3.46% | 3.90% | -3.84% | -6.26% | -6.51% | -4.53% |
| Brent Crude Oil (BNO) | +3.11% | 3.34% | -3.84% | -4.67% | -3.84% | -3.84% |
| Natural Gas (UNG) | -0.68% | 10.03% | 7.49% | -9.74% | -22.31% | -3.26% |
| Gasoline (UGA) | +3.02% | 2.78% | -1.41% | 2.50% | 0.27% | 0.74% |
| Precious Metals (DBP) | +0.30% | -2.99% | 9.22% | 19.19% | 54.78% | 45.14% |
| Gold (GLD) | +0.01% | -3.01% | 9.34% | 19.35% | 55.82% | 48.58% |
| Silver (SLV) | +0.21% | -6.62% | 9.59% | 22.84% | 66.65% | 38.25% |
| Platinum (PPLT) | +5.64% | 1.42% | 14.26% | 13.12% | 78.54% | 56.89% |
| Palladium (PALL) | +3.02% | -0.23% | 22.11% | 13.14% | 58.43% | 33.11% |
| Industrial Metals (DBB) | +1.81% | 1.91% | 6.27% | 7.61% | 13.26% | 7.61% |
| Copper (CPER) | +1.41% | 0.49% | 8.21% | -12.76% | 23.09% | 12.33% |
| Agriculture (DBA) | +0.48% | 1.58% | 0.41% | 3.81% | 1.39% | 11.11% |
| Corn (CORN) | +0.40% | -0.06% | -0.45% | 0.40% | -6.61% | -2.29% |
| Soybeans (SOYB) | +0.05% | 0.94% | 1.66% | 0.69% | 2.56% | 1.85% |
| Wheat (WEAT) | +0.25% | -0.25% | -1.94% | -10.62% | -16.18% | -21.71% |
| Sugar (CANE) | -0.83% | -2.49% | -5.55% | -11.11% | -15.67% | -23.86% |
Cryptocurrency
The sell-off in digital assets was sharp and widespread, confirming the risk-off tone seen in thematic ETFs. Solana (SOLZ) led the charge lower, dropping -7.44%. The two largest assets, Ethereum (ETHA) and Bitcoin (IBIT), fell -5.02% and -3.59%, respectively.
| Asset (Ticker) | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Solana (SOLZ) | -7.44% | -1.20% | -18.13% | -15.14% | ||
| Ethereum (ETHA) | -5.02% | -0.62% | -8.09% | 3.42% | 13.72% | 44.45% |
| Multi-Coin (NCIQ) | -4.27% | 0.38% | -6.51% | -9.29% | ||
| Bitcoin (IBIT) | -3.59% | 1.22% | -3.83% | -9.75% | 15.38% | 59.36% |
What to Watch Today
Investors’ focus shifts squarely to the state of the U.S. labor market this morning. Typically, the weekly Initial Jobless Claims report, a high-frequency indicator of layoffs and labor market stress, would be released at 8:30 a.m. ET. However, with the U.S. government shutdown entering its fourth week, the release of this key data point may be delayed or impacted. Market participants will be watching for any updates on the data’s availability, as it usually provides timely insight into the health of the job market. A significantly higher-than-expected number, whenever it is released, could reignite concerns of a weakening economy, while a lower number might ease those fears but keep pressure on the Federal Reserve. Also on the docket today are the Chicago Fed National Activity Index and Existing Home Sales data, as well as commentary from two Fed officials.
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.
