Tech Bucks the Trend as Markets Await Rate Decision; Energy & Utilities Lag

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Macro Overview

Equity markets began the week on a cautious note, with the S&P 500 (IVV) slipping -0.30% as investors positioned themselves ahead of the Federal Reserve’s upcoming policy decision. Treasury yields ticked higher, weighing on broader sentiment, while M&A headlines—including a hostile bid for Warner Bros. Discovery—sparked volatility in specific sectors. Despite the headline decline, the technology sector showed resilience, bucking the trend to post gains, while defensive areas like utilities and health care faced steeper selling pressure.

U.S. Size & Style

Selling pressure was relatively uniform across the size and style spectrum, though mid-cap stocks slightly underperformed their peers. Mid Cap (IJH) dropped -0.50%, while Small Cap (IJR) fell -0.41%. In the large-cap space, growth marginally lagged value, with Large Growth (IVW) declining -0.34% compared to a -0.30% dip for Large Value (IVE).

Name (Ticker) 1 Day WTD 1 Month 3 Month YTD 1 Year
Large Value (IVE) -0.30% -0.30% +1.65% +4.62% +12.09% +6.55%
Large Cap (IVV) -0.30% -0.30% +1.89% +5.68% +17.79% +13.92%
Large Growth (IVW) -0.34% -0.34% +2.09% +6.53% +22.63% +19.88%
Mid Value (IJJ) -0.43% -0.43% +2.63% +0.58% +6.73% +1.00%
Mid Cap (IJH) -0.50% -0.50% +1.97% +0.57% +7.23% +0.63%
Mid Growth (IJK) -0.53% -0.53% +1.28% +0.60% +7.41% +0.05%
Small Value (IJS) -0.35% -0.35% +3.13% +3.16% +6.15% -0.06%
Small Cap (IJR) -0.41% -0.41% +2.70% +2.22% +6.23% -0.77%
Small Growth (IJT) -0.37% -0.37% +2.22% +1.29% +6.28% -1.68%

U.S. Sectors & Industries

Technology (XLK) was the lone bright spot among GICS sectors, gaining +0.70% amid strength in semiconductor and software names. Conversely, Consumer Discretionary (XLY) tumbled -1.45%, weighed down by weakness in key components including Netflix. Pharmaceuticals (XPH) delivered a standout performance, surging +3.90%, while Utilities (XLU) and Materials (XLB) were heavy laggards, falling -1.34% and -1.38% respectively.

Sector (Ticker) 1 Day WTD 1 Month 3 Month YTD 1 Year
Technology (XLK) +0.70% +0.70% +2.46% +11.63% +27.57% +23.36%
Industrials (XLI) -0.12% -0.12% +0.69% +2.48% +18.37% +11.51%
Financial (XLF) -0.37% -0.37% +1.33% +1.03% +11.79% +7.66%
Real Estate (XLRE) -0.61% -0.61% -1.28% -2.03% +2.48% -3.76%
Communication Services (XLC) -0.74% -0.74% +3.70% +1.61% +21.15% +16.51%
Consumer Staples (XLP) -0.83% -0.83% +1.43% -2.76% +0.87% -3.01%
Energy (XLE) -1.09% -1.09% +1.45% +5.11% +8.68% +3.13%
Health Care (XLV) -1.19% -1.19% +3.62% +10.35% +11.53% +6.82%
Utilities (XLU) -1.34% -1.34% -4.74% +4.10% +15.23% +10.35%
Materials (XLB) -1.38% -1.38% +1.33% -5.07% +4.86% -3.51%
Consumer Discretionary (XLY) -1.45% -1.45% +0.05% +0.16% +5.87% +2.22%

Global Thematic

Thematic performance showed significant divergence, with high-growth and speculative themes leading the charge. Life sciences and crypto-linked funds outperformed, led by F/M Emerald Life Sciences Innovation ETF (LFSC) and VanEck Digital Transformation ETF (DAPP). Conversely, cannabis-related themes faced renewed selling pressure, with AdvisorShares Pure US Cannabis ETF (MSOS) tumbling nearly -7%.

Developed Markets ex-U.S.

International developed markets saw broad declines, with the aggregate Dev ex-U.S. (EFA) falling -0.31%. South Korea (EWY) bucked the trend with a gain of +0.82%, while Hong Kong (EWH) lagged significantly, dropping -1.04%.

Country (Ticker) 1-Day % Change WTD 1 Month 3 Month YTD 1 Year
Dev ex-U.S. (EFA) -0.31% -0.31% +1.28% +3.02% +28.50% +22.98%
Australia (EWA) -0.38% -0.38% -0.76% -2.81% +11.65% +5.40%
Canada (EWC) -0.64% -0.64% +5.69% +7.40% +32.27% +25.98%
France (EWQ) +0.07% +0.07% +1.99% +3.86% +27.26% +23.59%
Germany (EWG) -0.17% -0.17% +2.12% -0.84% +32.06% +25.85%
Hong Kong (EWH) -1.04% -1.04% -2.06% +1.96% +33.77% +31.55%
Japan (EWJ) -0.61% -0.61% -0.12% +2.75% +24.98% +19.83%
Netherlands (EWN) +0.29% +0.29% +1.70% +8.40% +33.75% +28.97%
South Korea (EWY) +0.82% +0.82% +3.56% +28.14% +86.81% +77.17%
Switzerland (EWL) -0.47% -0.47% +3.62% +2.54% +28.07% +21.99%
U.K. (EWU) -0.32% -0.32% +0.49% +3.28% +29.68% +25.03%

Emerging Markets

Emerging markets were mostly weaker, with Emerging (EEM) slipping -0.22%. Brazil (EWZ) outperformed, gaining +0.68%, while South Africa (EZA) and India (INDA) underperformed significantly, falling -2.20% and -1.65%, respectively.

Country (Ticker) 1-Day % Change WTD 1 Month 3 Month YTD 1 Year
Emerging (EEM) -0.22% -0.22% +0.13% +7.29% +31.86% +27.88%
Brazil (EWZ) +0.68% +0.68% +1.39% +10.72% +48.14% +37.96%
China (MCHI) -0.70% -0.70% -2.19% -0.13% +34.07% +33.89%
India (INDA) -1.65% -1.65% -1.25% +0.36% +0.84% -3.95%
Indonesia (EIDO) +0.27% +0.27% +1.83% +7.83% +4.86% -3.52%
Malaysia (EWM) -1.20% -1.20% +0.34% +4.78% +9.57% +9.53%
Mexico (EWW) -0.06% -0.06% +1.21% +7.00% +49.26% +39.48%
South Africa (EZA) -2.20% -2.20% +3.35% +11.88% +60.28% +46.34%
Taiwan (EWT) +0.34% +0.34% +1.49% +7.53% +26.68% +23.45%
Thailand (THD) -1.10% -1.10% -1.28% -0.72% +0.73% -4.61%

Fixed Income

Treasury yields rose, pressuring most fixed income categories. Taxable Core (AGG) finished down -0.16%, while Emerging USD (EMB) lagged, falling -0.42%. Bank Loans (BKLN) and Convertible (CWB) were rare bright spots, each ticking up +0.10%.

Category (Ticker) 1 Day WTD 1 Month 3 Month YTD 1 Year
Taxable Core (AGG) -0.16% -0.16% 0.00% +0.41% +6.83% +4.55%
Taxable Core Enhanced (IUSB) -0.15% -0.15% -0.05% +0.55% +7.03% +4.92%
Taxable Multisector (PYLD) -0.15% -0.15% +0.45% +1.39% +8.85% +7.90%
Taxable Ultrashort (BIL) +0.01% +0.01% +0.31% +0.97% +3.90% +4.20%
Taxable Short-Term (BSV) -0.05% -0.05% +0.22% +0.63% +5.54% +5.23%
Taxable Long Term (BLV) -0.26% -0.26% -0.61% -0.38% +6.64% +0.58%
Government Short (SPTS) -0.07% -0.07% +0.18% +0.70% +4.56% +4.73%
Government Intermediate (SPTI) -0.17% -0.17% -0.04% +0.18% +7.08% +5.45%
Government Long (SPTL) -0.30% -0.30% -1.23% -0.74% +5.35% -1.12%
Inflation Protected (TIP) -0.20% -0.20% -0.31% -0.52% +6.75% +4.67%
Corporate (SPIB) -0.09% -0.09% +0.39% +0.78% +7.48% +6.25%
Taxable High Yield (HYG) -0.25% -0.25% +0.74% +1.05% +7.98% +6.85%
Bank Loans (BKLN) +0.10% +0.10% +0.81% +1.90% +6.25% +6.50%
Preferred Stock (PFF) 0.00% 0.00% +0.12% -1.52% +4.34% +1.35%
Convertible (CWB) +0.10% +0.10% -1.04% +4.95% +18.40% +13.17%
Mortgage Backed (MBS) -0.25% -0.25% -0.16% +0.65% +7.64% +5.38%
International USD (BNDX) -0.24% -0.24% -0.64% +0.16% +2.68% +1.57%
International (IGOV) -0.38% -0.38% -0.59% -2.08% +9.01% +5.24%
Emerging USD (EMB) -0.42% -0.42% +0.29% +2.50% +12.99% +9.66%
Emerging (EMLC) -0.20% -0.20% +0.89% +2.31% +17.02% +14.37%
Municipal Short (SUB) +0.08% +0.08% +0.32% +0.06% +3.25% +3.21%
Municipal Intermediate (MUB) -0.06% -0.06% -0.08% +1.77% +3.25% +1.60%
Municipal Long (MLN) +0.09% +0.09% -0.29% +2.89% +1.40% -0.56%
Municipal High Yield (HYD) +0.01% +0.01% +0.48% +2.06% +2.01% +0.73%

Commodities

Commodities were broadly lower, led by a sharp selloff in the energy complex. Natural Gas (UNG) plunged -7.94%, while Energy (DBE) fell -2.45%. Precious metals also retreated, with Precious Metals (DBP) declining -0.51%.

Commodity (Ticker) 1-Day % Change WTD 1 Month 3 Month YTD 1 Year
Broad Commodities (DJP) -1.76% -1.76% +3.20% +8.81% +17.64% +19.90%
Energy (DBE) -2.45% -2.45% -1.82% +0.24% +1.75% +8.16%
WTI Crude Oil (USO) -1.99% -1.99% -1.08% -3.49% -6.70% +0.36%
Brent Crude Oil (BNO) -2.00% -2.00% -0.96% -2.99% -3.71% +1.30%
Natural Gas (UNG) -7.94% -7.94% +8.03% +14.51% -10.35% +12.72%
Gasoline (UGA) -2.06% -2.06% -3.87% +2.10% +2.91% +8.25%
Precious Metals (DBP) -0.51% -0.51% +7.04% +18.29% +62.05% +61.07%
Gold (GLD) -0.26% -0.26% +4.65% +15.11% +59.18% +58.64%
Silver (SLV) -0.45% -0.45% +20.01% +40.52% +100.19% +86.58%
Platinum (PPLT) +0.17% +0.17% +6.60% +18.85% +80.54% +76.32%
Palladium (PALL) +0.69% +0.69% +5.87% +28.79% +60.34% +52.60%
Industrial Metals (DBB) +0.13% +0.13% +3.98% +12.75% +19.15% +16.28%
Copper (CPER) -0.33% -0.33% +8.38% +18.59% +32.11% +27.11%
Agriculture (DBA) -0.45% -0.45% +0.76% -3.23% -0.71% +0.86%
Corn (CORN) -0.07% -0.07% +0.41% +1.01% -4.97% -1.88%
Soybeans (SOYB) -0.69% -0.69% -1.21% +3.53% +6.47% +7.88%
Wheat (WEAT) -0.10% -0.10% -1.29% -1.52% -14.19% -14.55%
Sugar (CANE) +0.50% +0.50% +5.25% -8.56% -15.84% -24.25%

Cryptocurrency

Digital assets posted gains across the board, with Ethereum (ETHA) leading the pack with a solid +3.81% advance. Bitcoin (IBIT) also firmed, rising +1.64% despite broader risk-off sentiment in equity markets.

Asset (Ticker) 1-Day % Change WTD 1 Month 3 Month YTD 1 Year
Solana (SOLZ) +0.95% +0.95% -18.70% -40.45%
Bitcoin (IBIT) +1.64% +1.64% -12.50% -19.12% -2.88% -10.87%
Multi-Coin (NCIQ) +1.95% +1.95% -12.50% -22.13%
XRP +3.13% +3.13%
Ethereum (ETHA) +3.81% +3.81% -9.43% -26.93% -6.21% -22.91%

What to Watch Today

Investors will be closely monitoring the NFIB Small Business Optimism Index and the JOLTS Job Openings report, both set for release this morning. The JOLTS data, which includes delayed numbers, will provide crucial insights into labor market demand as the Federal Reserve begins its two-day policy meeting. With the FOMC decision looming tomorrow, these data points could help shape market expectations regarding the central bank’s path forward on interest rates.

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.