Macro Overview
U.S. equities fell on Tuesday as investors took profits in high-flying technology stocks amid growing concerns over stretched valuations. The sell-off was sparked in part by a filing from a prominent short-seller betting against AI leaders and cautious commentary from major bank CEOs. The S&P 500, represented by the S&P 500 (IVV), finished the day down -1.15%, while the tech-heavy Nasdaq Composite saw a sharper decline of over 2.0%.
U.S. Size & Style
The risk-off sentiment was evident across size and style, with growth-oriented segments bearing the brunt of the sell-off. Large Growth (IVW) fell -1.76%, significantly underperforming Large Value (IVE), which posted a milder loss of -0.31%. Small-caps also declined, with the Small Cap (IJR) ending down -1.22%.
| Name (Ticker) | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Large Value (IVE) | -0.31% | -0.45% | 0.01% | 6.28% | 10.25% | 8.81% |
| Large Cap (IVV) | -1.15% | -0.94% | 0.95% | 7.36% | 16.38% | 20.08% |
| Large Growth (IVW) | -1.76% | -1.30% | 1.74% | 8.26% | 21.73% | 29.58% |
| Mid Value (IJJ) | -0.77% | -0.53% | -3.01% | 2.94% | 3.02% | 4.43% |
| Mid Cap (IJH) | -0.86% | -0.91% | -2.17% | 2.62% | 4.20% | 4.82% |
| Mid Growth (IJK) | -0.92% | -1.04% | -1.40% | 2.46% | 5.09% | 4.85% |
| Small Value (IJS) | -1.26% | -1.02% | -2.91% | 8.89% | 1.71% | 4.00% |
| Small Cap (IJR) | -1.22% | -1.02% | -2.90% | 6.12% | 2.26% | 3.42% |
| Small Growth (IJT) | -1.29% | -1.07% | -3.01% | 3.50% | 2.71% | 2.71% |
U.S. Sectors & Industries
Sector performance clearly illustrated the day’s narrative, with Technology (XLK) sinking -2.64% to pace the declines. The selling was acute in sub-sectors like Semiconductor (XSD) (-5.43%) and Software & Svcs (XSW) (-3.83%). On the positive side, defensive sectors and Financials found a bid, with Financial (XLF) leading the way up +0.52%, followed by Health Care (XLV) (+0.45%).
| Sector (Ticker) | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Financial (XLF) | +0.52% | 0.10% | -2.42% | 1.32% | 9.58% | 14.92% |
| Health Care (XLV) | +0.45% | 0.59% | 0.19% | 9.59% | 6.87% | 0.62% |
| Consumer Staples (XLP) | +0.41% | -0.38% | -2.61% | -5.01% | -1.49% | -2.91% |
| Real Estate (XLRE) | +0.27% | 0.10% | -2.71% | -0.93% | 2.98% | -2.06% |
| Utilities (XLU) | -0.36% | -0.30% | -0.09% | 2.41% | 19.80% | 18.42% |
| Materials (XLB) | -0.49% | -1.11% | -5.72% | -3.13% | 2.15% | -7.63% |
| Communication Services (XLC) | -0.69% | -1.74% | -3.08% | 4.66% | 17.56% | 23.90% |
| Energy (XLE) | -1.08% | -1.07% | -1.93% | 2.97% | 4.31% | 0.59% |
| Industrials (XLI) | -1.16% | -1.58% | -1.17% | 1.40% | 17.00% | 15.75% |
| Consumer Discretionary (XLY) | -1.66% | -0.74% | 0.13% | 9.13% | 6.85% | 20.44% |
| Technology (XLK) | -2.64% | -2.24% | 3.24% | 12.21% | 27.00% | 32.20% |
Global Thematic
Thematic strategies, particularly those focused on disruptive technology and cryptocurrency, were hit hard by yesterday’s downturn. Blockchain and crypto-related ETFs dominated the laggards list, with several funds falling over 6%. Defensive themes like water resources provided a small pocket of safety, with Invesco Water Resources ETF (PHO) managing a +0.60% gain.
| Top 5 Performers (1-Day % Change) | |
|---|---|
| Name (Ticker) | 1-Day % Change |
| Invesco Water Resources ETF (PHO) | +0.60% |
| Invesco S&P Global Water Index ETF (CGW) | +0.45% |
| First Trust Water ETF (FIW) | +0.41% |
| VanEck Environmental Services ETF (EVX) | +0.38% |
| Tortoise Global Water Fund (TBLU) | +0.17% |
| Bottom 5 Performers (1-Day % Change) | |
|---|---|
| Name (Ticker) | 1-Day % Change |
| Global X Blockchain ETF (BKCH) | -6.58% |
| VanEck Digital Transformation ETF (DAPP) | -6.41% |
| Global X Hydrogen ETF (HYDR) | -6.22% |
| Schwab Crypto Thematic ETF (STCE) | -6.19% |
| Sprott Silver Miners & Physical Silver ETF (SLVR) | -6.09% |
Developed Markets ex-U.S.
Developed international markets followed the U.S. lower, with the Dev ex-U.S. (EFA) benchmark falling -1.03%. The most dramatic move was in South Korea (EWY), which plummeted -4.98%, likely caught in the tech and semiconductor downdraft. European markets like Germany (EWG) and France (EWQ) also closed firmly in the red.
| Country (Ticker) | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Dev ex-U.S. (EFA) | -1.03% | -0.98% | -1.60% | 5.78% | 25.88% | 21.44% |
| Australia (EWA) | -1.60% | -1.34% | -3.72% | 0.49% | 12.37% | 7.00% |
| Canada (EWC) | -1.87% | -2.01% | -2.97% | 6.74% | 24.20% | 24.02% |
| France (EWQ) | -1.00% | -1.47% | -2.85% | 4.23% | 24.35% | 18.48% |
| Germany (EWG) | -1.39% | -0.96% | -4.93% | -2.32% | 28.87% | 26.48% |
| Hong Kong (EWH) | -0.64% | 1.49% | 1.39% | 5.81% | 34.01% | 26.03% |
| Japan (EWJ) | -0.97% | -0.74% | 1.28% | 10.01% | 24.44% | 24.65% |
| Netherlands (EWN) | -1.47% | -1.67% | -3.02% | 12.60% | 31.70% | 26.91% |
| South Korea (EWY) | -4.98% | -1.28% | 14.20% | 32.39% | 88.17% | 61.05% |
| Switzerland (EWL) | -0.11% | -0.54% | -2.82% | 3.28% | 22.08% | 12.80% |
| U.K. (EWU) | -0.82% | -1.15% | -1.08% | 4.90% | 26.97% | 22.72% |
Emerging Markets
Emerging markets were not spared from the sell-off, with the Emerging (EEM) index down -1.83%. Key Asian markets fell in sympathy with the U.S. tech decline, as Taiwan (EWT) lost -2.20% and China (MCHI) dropped -1.29%. South Africa (EZA) was a notable laggard, falling -3.64%.
| Country (Ticker) | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Emerging (EEM) | -1.83% | -1.21% | 0.74% | 12.18% | 31.88% | 25.36% |
| Brazil (EWZ) | -1.08% | 0.03% | 2.80% | 15.78% | 41.04% | 19.40% |
| China (MCHI) | -1.29% | -1.32% | -5.74% | 9.15% | 35.17% | 29.46% |
| India (INDA) | -0.41% | 0.09% | 2.99% | 2.93% | 2.62% | 0.21% |
| Indonesia (EIDO) | -0.49% | 0.44% | 5.34% | 4.38% | 2.02% | -9.50% |
| Malaysia (EWM) | -0.31% | 0.50% | -0.84% | 7.67% | 8.16% | 7.90% |
| Mexico (EWW) | -0.88% | -1.32% | -1.74% | 10.84% | 42.76% | 33.17% |
| South Africa (EZA) | -3.64% | -3.65% | -5.56% | 11.61% | 48.33% | 31.57% |
| Taiwan (EWT) | -2.20% | -1.83% | 1.22% | 11.20% | 26.41% | 22.41% |
| Thailand (THD) | -1.70% | -2.34% | -1.45% | 3.64% | 0.35% | -7.41% |
Fixed Income
The fixed income market saw a modest flight to safety, with Taxable Core (AGG) eking out a +0.05% gain and Government Long (SPTL) rising +0.18%. The equity-sensitive Convertible (CWB) category was a notable outlier, falling -1.92% as it moved in lockstep with the tech stocks it is often tied to.
| Category (Ticker) | 1 Day | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Taxable Core (AGG) | +0.05% | -0.07% | 0.29% | 1.92% | 6.77% | 6.10% |
| Taxable Core Enhanced (IUSB) | +0.06% | -0.03% | 0.31% | 2.01% | 6.90% | 6.42% |
| Taxable Multisector (PYLD) | 0.00% | 0.00% | 0.52% | 2.58% | 8.32% | 9.32% |
| Taxable Ultrashort (BIL) | +0.01% | 0.03% | 0.32% | 1.03% | 3.53% | 4.26% |
| Taxable Short-Term (BSV) | +0.04% | 0.06% | 0.29% | 1.15% | 5.21% | 5.58% |
| Taxable Long Term (BLV) | +0.24% | -0.18% | 0.29% | 3.06% | 7.60% | 4.34% |
| Government Short (SPTS) | +0.03% | 0.06% | 0.26% | 1.06% | 4.27% | 4.95% |
| Government Intermediate (SPTI) | +0.07% | 0.04% | 0.39% | 1.37% | 6.93% | 6.39% |
| Government Long (SPTL) | +0.18% | -0.03% | 1.01% | 3.05% | 7.06% | 3.04% |
| Inflation Protected (TIP) | +0.05% | -0.03% | 0.27% | 1.34% | 7.17% | 6.14% |
| Corporate (SPIB) | +0.09% | 0.01% | 0.10% | 1.50% | 6.97% | 7.09% |
| Taxable High Yield (HYG) | +0.01% | -0.30% | -0.35% | 1.34% | 6.94% | 7.55% |
| Bank Loans (BKLN) | +0.05% | 0.05% | 0.43% | 1.73% | 5.29% | 6.86% |
| Preferred Stock (PFF) | -0.39% | -0.45% | -2.17% | 0.47% | 3.85% | 0.62% |
| Convertible (CWB) | -1.92% | -1.65% | -0.54% | 8.63% | 19.21% | 21.36% |
| Mortgage Backed (MBS) | +0.15% | 0.04% | 0.53% | 2.67% | 7.64% | 7.32% |
| International USD (BNDX) | -0.08% | -0.16% | 0.73% | 1.04% | 3.42% | 4.21% |
| International (IGOV) | -0.31% | -0.59% | -1.57% | -0.55% | 9.11% | 4.79% |
| Emerging USD (EMB) | -0.11% | -0.41% | 1.12% | 4.20% | 12.47% | 11.94% |
| Emerging (EMLC) | -0.47% | -0.44% | -0.28% | 2.56% | 14.99% | 11.76% |
| Municipal Short (SUB) | +0.04% | -0.02% | -0.16% | 0.18% | 2.81% | 3.19% |
| Municipal Intermediate (MUB) | +0.16% | 0.02% | 1.06% | 3.84% | 3.34% | 3.27% |
| Municipal Long (MLN) | -0.23% | 0.04% | 1.36% | 5.80% | 1.87% | 2.20% |
| Municipal High Yield (HYD) | +0.02% | -0.06% | 0.73% | 4.23% | 1.72% | 1.77% |
Commodities
Commodities fell broadly, with Broad Commodities (DJP) down -1.03%. The decline was driven by both energy and metals, as WTI Crude Oil (USO) slid -1.11% and Gold (GLD) fell -1.75%. Natural Gas (UNG) was a lone bright spot, jumping +1.24%.
| Commodity (Ticker) | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Broad Commodities (DJP) | -1.03% | -0.14% | 2.56% | 8.84% | 13.74% | 14.21% |
| Energy (DBE) | -0.11% | 0.49% | 2.99% | 0.62% | 3.66% | 5.40% |
| WTI Crude Oil (USO) | -1.11% | -0.87% | 0.31% | -5.49% | -4.79% | -3.18% |
| Brent Crude Oil (BNO) | -0.98% | -0.64% | 0.34% | -3.70% | -1.90% | -2.00% |
| Natural Gas (UNG) | +1.24% | 5.13% | 6.74% | 7.48% | -17.13% | 6.66% |
| Gasoline (UGA) | +0.03% | 1.26% | 6.70% | 6.40% | 5.41% | 6.27% |
| Precious Metals (DBP) | -1.74% | -1.69% | 0.53% | 17.66% | 48.77% | 42.01% |
| Gold (GLD) | -1.75% | -1.58% | 1.31% | 16.54% | 49.64% | 43.31% |
| Silver (SLV) | -2.33% | -2.89% | -1.79% | 25.78% | 62.32% | 44.25% |
| Platinum (PPLT) | -1.77% | -2.67% | -4.56% | 15.40% | 68.22% | 55.13% |
| Palladium (PALL) | -2.98% | -3.49% | 9.85% | 16.68% | 52.16% | 28.40% |
| Industrial Metals (DBB) | -1.37% | -1.50% | 3.15% | 12.14% | 14.70% | 10.03% |
| Copper (CPER) | -2.40% | -3.17% | -2.52% | 10.14% | 21.34% | 9.74% |
| Agriculture (DBA) | -1.00% | 1.06% | -0.07% | 3.58% | 0.23% | 9.49% |
| Corn (CORN) | -0.56% | 0.43% | 1.48% | 4.38% | -4.79% | -0.36% |
| Soybeans (SOYB) | -1.24% | 0.17% | 6.38% | 8.54% | 7.91% | 7.56% |
| Wheat (WEAT) | +0.46% | 2.59% | 4.82% | 0.93% | -9.75% | -15.04% |
| Sugar (CANE) | -2.39% | -1.13% | -12.55% | -15.46% | -19.55% | -27.88% |
Cryptocurrency
Digital assets were at the epicenter of the risk-off move, experiencing severe declines. Ethereum (ETHA) led the plunge with a loss of -10.37%, while Bitcoin (IBIT) fell sharply by -5.53%. The move erased a significant portion of recent gains and highlighted the high-beta nature of the asset class.
| Asset (Ticker) | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Ethereum (ETHA) | -10.37% | -17.30% | -29.13% | -12.50% | -3.99% | 32.46% |
| Solana (SOLZ) | -6.74% | -18.86% | -35.31% | -11.76% | ||
| Bitcoin (IBIT) | -5.53% | -8.22% | -18.09% | -12.30% | 7.79% | 49.49% |
| Multi-Coin (NCIQ) | -5.10% | -9.43% | -20.62% | -13.37% |
What to Watch Today
Investors are closely watching the labor market for fresh direction. This morning’s ADP National Employment Report for October provided a key data point. The report showed that private sector employment increased by 42,000 jobs, which was a rebound from the prior month’s revised loss and better than the consensus forecast of 25,000 to 32,000. As this is one of the first major labor reports since the government shutdown began, it will be heavily scrutinized for clues on the economy’s health and its potential influence on the Federal Reserve’s policy outlook.
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.
