Macro Overview
U.S. equities snapped a four-session losing streak on December 18 as investors cheered a “dual jolt” of cooling inflation data and robust semiconductor earnings. The S&P 500 (IVV) climbed +0.76% after November’s Consumer Price Index (CPI) rose just 2.7% year-over-year, coming in well below the 3.1% consensus estimate. This softer-than-expected inflation print reinforced hopes that the Federal Reserve will have more room for rate cuts in 2026. Market sentiment was further bolstered by Micron Technology (MU), which soared 10% following an earnings beat that revitalized the AI trade, providing much-needed support to the tech-heavy benchmarks.
U.S. Size & Style
Growth dominated the landscape as the rally in AI-linked names pushed Large Growth (IVW) to a +1.20% gain, significantly outperforming its value counterpart. While the Large Cap (IVV) advanced +0.76%, small-cap stocks showed more restraint, with Small Cap (IJR) rising only +0.21%. Despite the daily bounce, most size and style segments remain in the red for the week following the recent sharp retreat in technology momentum.
| Name (Ticker) | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Large Growth (IVW) | +1.20% | -0.86% | 2.23% | 1.16% | 19.92% | 19.87% |
| Large Cap (IVV) | +0.76% | -0.77% | 2.48% | 2.44% | 16.57% | 16.85% |
| Mid Growth (IJK) | +0.76% | -0.94% | 4.69% | 0.01% | 7.46% | 6.92% |
| Mid Cap (IJH) | +0.50% | -0.79% | 5.43% | 0.76% | 7.93% | 8.28% |
| Large Value (IVE) | +0.25% | -0.67% | 2.77% | 3.93% | 12.57% | 12.99% |
| Small Cap (IJR) | +0.21% | -1.14% | 7.43% | 1.72% | 7.61% | 7.34% |
| Mid Value (IJJ) | +0.18% | -0.78% | 6.16% | 1.53% | 8.07% | 9.76% |
| Small Growth (IJT) | +0.15% | -1.44% | 6.92% | 0.17% | 6.98% | 5.87% |
| Small Value (IJS) | +0.12% | -0.94% | 7.98% | 3.36% | 8.13% | 8.39% |
U.S. Sectors & Industries
Technology and Consumer Discretionary led the sectoral rebound, with Technology (XLK) jumping +1.54% and Consumer Discretionary (XLY) gaining +1.51%. Within industries, Aerospace & Defense saw notable strength as the Aerospace & Defense (XAR) rose +1.84%. Conversely, the Energy (XLE) sector was the primary laggard, falling -1.45% as crude oil prices faced downward pressure from geopolitical cooling and increased inventory expectations.
| Sector (Ticker) | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Technology (XLK) | +1.54% | -1.50% | 1.45% | 2.65% | 22.31% | 22.65% |
| Consumer Discretionary (XLY) | +1.51% | 1.36% | 8.99% | 1.93% | 9.77% | 7.92% |
| Utilities (XLU) | +0.98% | 0.82% | -3.21% | 2.99% | 16.47% | 18.68% |
| S&P 500 (SPY) | +0.76% | -0.78% | 2.48% | 2.43% | 16.43% | 16.78% |
| Industrials (XLI) | +0.65% | -1.41% | 3.12% | 1.58% | 18.47% | 18.46% |
| Communication Services (XLC) | +0.57% | -0.07% | 4.17% | -1.72% | 21.37% | 20.58% |
| Health Care (XLV) | +0.08% | -0.10% | 0.87% | 12.47% | 13.36% | 14.07% |
| Materials (XLB) | -0.04% | 0.04% | 5.64% | -0.11% | 8.93% | 7.82% |
| Financial (XLF) | -0.16% | -0.75% | 6.17% | 1.09% | 14.01% | 16.18% |
| Consumer Staples (XLP) | -0.58% | -0.29% | 2.71% | 0.25% | 2.66% | 1.36% |
| Real Estate (XLRE) | -0.61% | -0.66% | -0.86% | -3.03% | 1.82% | 2.68% |
| Energy (XLE) | -1.45% | -3.03% | -3.07% | -0.78% | 5.59% | 8.51% |
Global Thematic
Clean Energy and Uranium themes saw explosive growth, with the Clean Edge Green Energy Index Fund (QCLN) surging +3.70%. However, the thematic space was marred by extreme volatility in the cannabis sector following disappointing regulatory commentary, leading to a massive -26.91% collapse in the Pure US Cannabis ETF (MSOS).
| Name (Ticker) | 1-Day % Change |
|---|---|
| Clean Edge Green Energy Index Fund (QCLN) | +3.70% |
| WilderHill Clean Energy ETF (PBW) | +3.65% |
| Spear Alpha ETF (SPRX) | +3.55% |
| Uranium Miners ETF (URNM) | +3.13% |
| Hydrogen ETF (HYDR) | +3.00% |
| Pure US Cannabis ETF (MSOS) | -26.91% |
| Cannabis ETF (CNBS) | -25.52% |
| Alternative Harvest ETF (MJ) | -16.21% |
| Pure Cannabis ETF (YOLO) | -13.06% |
| Silver Miners & Physical Silver ETF (SLVR) | -1.79% |
Developed Markets ex-U.S.
International developed markets enjoyed broad gains, with the Dev ex-U.S. (EFA) rising +0.71%. Performance was particularly strong in Asian developed hubs, as Hong Kong (EWH) gained +1.76% and South Korea (EWY) advanced +1.68%, benefiting from the positive spillover in the global semiconductor sector.
| Country (Ticker) | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Dev ex-U.S. (EFA) | +0.71% | 0.05% | 4.04% | 3.41% | 29.89% | 30.00% |
| Australia (EWA) | +0.90% | -1.01% | 3.36% | -2.37% | 11.71% | 11.15% |
| Canada (EWC) | +0.78% | -0.36% | 6.27% | 7.01% | 34.13% | 35.65% |
| France (EWQ) | +0.40% | 0.33% | 3.20% | 2.71% | 28.33% | 29.71% |
| Germany (EWG) | +0.79% | -0.57% | 6.10% | 1.18% | 33.98% | 32.94% |
| Hong Kong (EWH) | +1.76% | 1.21% | 0.25% | 2.53% | 35.70% | 37.77% |
| Japan (EWJ) | +0.29% | -1.19% | 2.75% | 1.85% | 24.69% | 26.43% |
| Netherlands (EWN) | +0.81% | -0.74% | 2.71% | 2.10% | 32.48% | 31.42% |
| South Korea (EWY) | +1.68% | -0.59% | 0.58% | 14.08% | 81.02% | 76.78% |
| Switzerland (EWL) | +1.07% | 1.88% | 5.11% | 7.72% | 31.86% | 31.86% |
| U.K. (EWU) | +0.44% | 1.59% | 4.21% | 5.54% | 32.35% | 32.59% |
Emerging Markets
The Emerging (EEM) benchmark rose +1.14%, led by a strong bounce in Mexico (EWW) which gained +1.93%. Taiwan (EWT) also outperformed with a +1.40% increase, bolstered by the global chip rally. While China (MCHI) added +0.87%, it remains one of the few regions showing significant negative 3-month performance as regulatory uncertainty persists.
| Country (Ticker) | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Emerging (EEM) | +1.14% | -0.50% | -0.14% | 1.57% | 30.28% | 29.84% |
| Mexico (EWW) | +1.93% | -0.85% | 5.12% | 6.27% | 52.40% | 47.28% |
| Taiwan (EWT) | +1.40% | -0.66% | 1.60% | -0.15% | 23.02% | 23.81% |
| South Africa (EZA) | +1.31% | 3.78% | 7.65% | 15.84% | 71.94% | 66.35% |
| Malaysia (EWM) | +1.05% | 1.21% | 4.38% | 6.67% | 13.68% | 18.11% |
| China (MCHI) | +0.87% | -1.29% | -2.71% | -6.21% | 30.86% | 32.18% |
| India (INDA) | +0.59% | 0.26% | -2.44% | -0.86% | 1.22% | -0.58% |
| Brazil (EWZ) | +0.55% | -3.41% | -1.61% | 4.42% | 45.57% | 46.29% |
| Indonesia (EIDO) | +0.16% | 0.17% | 2.91% | 6.05% | 4.42% | 4.75% |
| Thailand (THD) | +0.05% | 0.80% | 2.69% | -0.99% | 1.80% | 3.38% |
Fixed Income
Bond markets responded favorably to the cool CPI data, as yields on the 10-year Treasury drifted lower. The Convertible (CWB) category led the space with a +0.92% gain, while Emerging USD (EMB) rose +0.44%. High yield also saw steady demand, with Taxable High Yield (HYG) adding +0.27%, reflecting improved risk appetite following the inflation print.
| Category (Ticker) | 1 Day | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Taxable Core (AGG) | +0.25% | 0.51% | 0.57% | 1.01% | 7.31% | 7.25% |
| Taxable Core Enhanced (IUSB) | +0.24% | 0.47% | 0.59% | 1.11% | 7.49% | 7.51% |
| Taxable Multisector (PYLD) | +0.19% | 0.38% | 1.02% | 1.57% | 9.33% | 9.54% |
| Taxable Ultrashort (BIL) | +0.02% | 0.04% | 0.32% | 0.98% | 4.02% | 4.20% |
| Taxable Short-Term (BSV) | +0.12% | 0.26% | 0.50% | 1.08% | 5.93% | 6.34% |
| Taxable Long Term (BLV) | +0.41% | 0.80% | 0.02% | -0.05% | 6.85% | 5.43% |
| Government Short (SPTS) | +0.05% | 0.19% | 0.47% | 1.09% | 4.94% | 5.47% |
| Government Intermediate (SPTI) | +0.22% | 0.46% | 0.46% | 1.02% | 7.61% | 7.72% |
| Government Long (SPTL) | +0.38% | 0.92% | -0.40% | 0.20% | 5.80% | 4.21% |
| Inflation Protected (TIP) | +0.19% | 0.24% | -0.02% | -0.11% | 7.01% | 6.80% |
| Corporate (SPIB) | +0.19% | 0.37% | 0.76% | 1.03% | 7.84% | 8.04% |
| Taxable High Yield (HYG) | +0.27% | 0.26% | 1.31% | 0.89% | 8.29% | 8.95% |
| Bank Loans (BKLN) | +0.10% | -0.05% | 0.96% | 1.61% | 6.35% | 6.81% |
| Preferred Stock (PFF) | +0.35% | 0.42% | 2.31% | -1.34% | 5.29% | 4.69% |
| Convertible (CWB) | +0.92% | -1.51% | 1.02% | -0.97% | 15.99% | 15.00% |
| Mortgage Backed (MBS) | +0.27% | 0.65% | 0.90% | 1.66% | 8.40% | 8.65% |
| International USD (BNDX) | +0.02% | 0.24% | -0.18% | 0.48% | 2.91% | 2.89% |
| International (IGOV) | +0.08% | 0.07% | 0.55% | -1.17% | 9.79% | 9.08% |
| Emerging USD (EMB) | +0.44% | 0.46% | 1.16% | 2.97% | 13.90% | 13.85% |
| Emerging (EMLC) | +0.27% | 0.27% | 1.21% | 2.11% | 17.85% | 17.75% |
| Municipal Short (SUB) | +0.05% | 0.08% | 0.35% | 0.30% | 3.45% | 3.62% |
| Municipal Intermediate (MUB) | +0.06% | 0.16% | 0.09% | 1.21% | 3.41% | 3.65% |
| Municipal Long (MLN) | +0.14% | 0.72% | 0.19% | 1.53% | 1.92% | 2.76% |
| Municipal High Yield (HYD) | +0.18% | 0.25% | 0.61% | 1.44% | 2.47% | 3.16% |
Commodities
Commodity performance was mixed on December 18. Precious metals saw divergence as abrdn Physical Palladium Shares ETF (PALL) surged +3.00%, while Silver (SLV) fell -1.56%. Energy commodities struggled, with Natural Gas (UNG) tumbling -4.83% amid forecasts for milder winter weather across the U.S.
| Commodity (Ticker) | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Broad Commodities (DJP) | -0.94% | -1.02% | -0.86% | 6.05% | 15.18% | 18.65% |
| Energy (DBE) | -1.74% | -2.71% | -9.81% | -7.18% | -4.12% | -0.50% |
| WTI Crude Oil (USO) | -1.16% | -2.35% | -7.32% | -10.04% | -11.07% | -7.88% |
| Brent Crude Oil (BNO) | -1.18% | -2.37% | -7.20% | -9.28% | -7.91% | -5.55% |
| Natural Gas (UNG) | -4.83% | -5.50% | -15.40% | -5.05% | -28.44% | -17.26% |
| Gasoline (UGA) | -0.39% | -3.00% | -11.39% | -6.23% | -2.60% | 0.94% |
| Precious Metals (DBP) | -0.80% | 1.68% | 10.47% | 24.47% | 70.72% | 73.07% |
| Gold (GLD) | -0.18% | 0.79% | 6.47% | 18.76% | 64.61% | 66.58% |
| Silver (SLV) | -1.56% | 5.74% | 28.68% | 56.15% | 125.29% | 120.93% |
| Platinum (PPLT) | +1.75% | 10.26% | 25.36% | 38.99% | 111.13% | 108.07% |
| Palladium (PALL) | +3.00% | 12.79% | 20.23% | 45.95% | 84.34% | 85.67% |
Cryptocurrency
Cryptocurrencies faced a broad-based retreat on December 18, with significant pressure on altcoins. Solana (SOLZ) was the day’s sharpest decliner, falling -4.91%. Major assets were not immune, as Bitcoin (IBIT) declined -1.54% and Ethereum (ETHA) dropped -1.50%, reflecting a cooling of the “risk-on” momentum that had characterized much of the prior month.
| Asset (Ticker) | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Solana (SOLZ) | -4.91% | -11.14% | -17.63% | -54.48% | — | — |
| XRP (XRP) | -3.90% | -9.81% | — | — | — | — |
| Multi-Coin (NCIQ) | -1.82% | -7.29% | -10.15% | -32.12% | — | — |
| Bitcoin (IBIT) | -1.54% | -6.33% | -8.93% | -28.15% | -9.59% | -16.12% |
| Ethereum (ETHA) | -1.50% | -9.76% | -10.98% | -39.53% | -16.96% | -24.87% |
What to Watch Today
For Friday, December 19, the market’s primary focus shifts to the housing sector and final reads on consumer sentiment. The National Association of Realtors (NAR) is scheduled to release Existing Home Sales data at 10:00 AM ET, with economists expecting a reading of 4.1 million units. Simultaneously, the final December reading of Michigan Consumer Sentiment will be released, providing updated insight into 5-year inflation expectations and the overall health of the American consumer. These reports are critical as they provide the final major economic data points of the year, potentially cementing the “soft landing” narrative if housing shows resilience alongside cooling price pressures.
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.
