Defensive Sectors Rise as Communication Services and Tech Lag

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Macro Overview

U.S. equities presented a mixed picture, with the S&P 500 (IVV) declining by 0.31% amid losses in technology stocks. In contrast, international markets fared better, as Developed ex-U.S. (EFA) edged up 0.16% and Emerging Markets (EEM) posted a stronger gain of 0.59%. The bond market saw losses, with the U.S. Aggregate Bond (AGG) falling 0.27% as Treasury yields increased. Broad Commodities (DJP) also retreated by 0.64%, influenced by a drop in crude oil prices following diplomatic progress between the U.S. and Iran.

U.S. Size & Style

A distinct divergence between growth and value styles characterized the U.S. equity market, particularly within the large-cap segment. Large Growth (IVW) fell 0.78%, while its value counterpart, Large Value (IVE), gained 0.20%. Mid-cap stocks showed relative strength, with the S&P MidCap 400 (IJH) advancing 0.38% and outperforming both large and small-cap benchmarks. Small caps were nearly flat, as the S&P SmallCap 600 (IJR) posted a marginal gain of 0.03%.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Large Value (IVE) 0.20% -0.14% 9.62% 7.78% 21.20%
Large Cap (IVV) -0.31% 0.08% 15.12% 9.75% 26.82%
Large Growth (IVW) -0.78% 0.29% 20.05% 11.25% 31.38%
Mid Value (IJJ) 0.14% 3.24% 13.62% 10.95% 22.19%
Mid Cap (IJH) 0.38% 3.75% 15.77% 15.81% 27.53%
Mid Growth (IJK) 0.59% 4.15% 17.98% 20.35% 32.45%
Small Value (IJS) -0.23% 3.17% 16.55% 17.64% 39.40%
Small Cap (IJR) 0.03% 4.58% 19.34% 19.75% 36.74%
Small Growth (IJT) 0.36% 5.97% 22.06% 21.75% 33.92%

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U.S. Sectors & Industries

Sector performance was widely dispersed, reflecting a defensive rotation as investors moved away from growth-oriented areas. Communication Services (XLC) was the weakest performer, dropping 2.11% and entering oversold territory with an RSI of 26, followed by a 1.70% decline in Consumer Discretionary (XLY). On the other end of the spectrum, Energy (XLE) led all sectors with a 1.26% gain, rebounding despite lower crude oil prices. Defensive and interest-rate sensitive sectors also found support, with Real Estate (XLRE) and Health Care (XLV) advancing 1.23% and 0.88%, respectively.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
S&P 500 (SPY) -0.31% 0.09% 15.07% 9.74% 26.64%
Energy (XLE) 1.26% -8.48% -7.61% 22.56% 26.31%
Real Estate (XLRE) 1.23% -0.36% 10.12% 10.77% 9.81%
Health Care (XLV) 0.88% 0.55% 4.13% -2.24% 15.69%
Industrials (XLI) 0.74% 6.10% 13.04% 17.81% 29.72%
Financials (XLF) 0.59% 3.75% 10.35% -1.11% 8.64%
Utilities (XLU) 0.55% -0.76% 1.49% 6.15% 14.57%
Technology (XLK) 0.49% 6.65% 42.37% 33.79% 60.86%
Materials (XLB) 0.01% 3.03% 10.77% 14.75% 22.24%
Consumer Staples (XLP) -0.66% -2.41% 2.37% 7.13% 4.97%
Consumer Discretionary (XLY) -1.70% -3.36% 7.11% -3.36% 10.19%
Communication Services (XLC) -2.11% -7.20% -4.23% -8.70% 5.47%

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Global Thematic

Thematic ETFs displayed significant divergence, with medical and semiconductor-related funds leading the day’s gains. ALPS Medical Breakthroughs ETF (SBIO) was a top performer, climbing 6.44%, while the Roundhill Memory ETF (DRAM) rose 5.23%. Conversely, cannabis and space exploration themes faced heavy selling pressure. The AdvisorShares Pure US Cannabis ETF (MSOS) fell 6.21%, and the Roundhill Space & Technology ETF (MARS) declined by a similar 6.12%.

Name (Ticker) 1-Day
Leaders
ALPS Medical Breakthroughs ETF (SBIO) 6.44%
Roundhill Memory ETF (DRAM) 5.23%
Tuttle Capital Pure Play Photonics ETF (FOTO) 5.03%
VistaShares Artificial Intelligence Supercycle ETF (AIS) 3.32%
Corgi Lithography & Semiconductor Photonics ETF (EUV) 3.08%
Laggards
AdvisorShares Pure US Cannabis ETF (MSOS) -6.21%
Roundhill Space & Technology ETF (MARS) -6.12%
Defiance Drone and Modern Warfare ETF (JEDI) -6.03%
Amplify Seymour Cannabis ETF (CNBS) -5.99%
Tema Space Innovators ETF (NASA) -4.80%

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Developed ex-U.S. & Emerging Markets

International markets generally outperformed the U.S., with Emerging Markets (EEM) rising 0.59% and Developed ex-U.S. (EFA) gaining 0.16%. Within developed economies, Japan (EWJ) advanced 0.74% as local indexes hit new records, while France (EWQ) lagged with a 1.31% loss. In the emerging space, Taiwan (EWT) and Brazil (EWZ) were notable gainers, rising 1.40% and 1.60% respectively. South Korea (EWY) was little changed on the day but continues its remarkable run, now up over 125% year-to-date.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Developed Markets ex-U.S.
Developed ex-U.S. (EFA) 0.16% 2.16% 13.50% 10.62% 25.28%
Australia (EWA) -0.39% 0.25% 5.69% 10.17% 14.87%
Canada (EWC) 0.03% -0.60% 9.30% 7.84% 30.12%
France (EWQ) -1.31% 2.47% 11.05% 2.88% 12.67%
Germany (EWG) 0.05% -1.27% 10.90% -0.32% 5.02%
Hong Kong (EWH) 0.23% -7.74% -2.91% 1.98% 17.76%
Japan (EWJ) 0.74% 6.41% 20.06% 20.74% 40.99%
Netherlands (EWN) -0.24% 6.75% 26.22% 25.11% 42.77%
South Korea (EWY) -0.08% 20.32% 74.13% 125.28% 226.87%
Switzerland (EWL) -0.13% -0.49% 10.70% 3.96% 18.32%
U.K. (EWU) 0.51% -1.57% 5.70% 5.39% 21.46%
Emerging Markets
Emerging Markets (EEM) 0.59% 8.63% 28.63% 30.81% 56.70%
Brazil (EWZ) 1.60% -4.87% -1.32% 8.90% 29.53%
China (MCHI) 0.17% -4.20% -3.63% -11.42% 0.68%
India (INDA) 0.69% 3.16% 7.15% -7.64% -7.38%
Indonesia (EIDO) -2.25% -5.52% -18.20% -33.86% -27.31%
Malaysia (EWM) -1.67% -5.55% -4.57% 0.94% 19.85%
Mexico (EWW) -1.77% -0.89% 10.31% 11.17% 35.21%
South Africa (EZA) -2.40% -1.18% 6.29% -3.32% 35.66%
Taiwan (EWT) 1.40% 15.17% 59.92% 75.55% 112.74%
Thailand (THD) -1.18% 0.75% 12.17% 22.56% 51.99%

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Fixed Income

Fixed income markets broadly declined as rising Treasury yields put pressure on bond prices. The U.S. Aggregate Bond (AGG) fell 0.27%, with longer-duration assets seeing larger drawdowns, evidenced by the 0.68% drop in Long-Term Treasuries (SPTL). Credit-sensitive segments showed more resilience, as High Yield (HYG) slipped just 0.09% and floating-rate Bank Loans (BKLN) finished flat. Preferred Stock (PFF) was a notable underperformer in the space, declining by 1.25%.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Multisector
Short-Term (BSV) -0.12% 0.11% 0.44% 0.21% 3.24%
Core (AGG) -0.27% 0.53% 0.98% 0.39% 4.46%
Core Enhanced (IUSB) -0.28% 0.57% 1.17% 0.54% 4.82%
Long-Term (BLV) -0.55% 1.61% 2.39% 0.81% 5.47%
Government
Ultrashort (BIL) 0.00% 0.27% 0.88% 1.66% 3.85%
Short-Term (SPTS) -0.10% 0.12% 0.39% 0.41% 3.09%
Intermediate (SPTI) -0.25% 0.22% -0.02% -0.52% 2.88%
Inflation Protected (TIP) -0.41% -0.16% 0.49% 0.77% 3.46%
Long-Term (SPTL) -0.68% 1.96% 1.53% 0.39% 4.40%
Specialty
Bank Loans (BKLN) 0.01% -0.04% 1.43% -0.03% 4.45%
High Yield (HYG) -0.09% 0.55% 2.84% 1.65% 6.23%
Corporate (SPIB) -0.12% 0.37% 1.15% 0.46% 4.70%
Convertible (CWB) -0.14% 4.66% 20.50% 24.56% 39.19%
Mortgage Backed (MBB) -0.24% 0.53% 1.17% 0.73% 5.95%
Preferred Stock (PFF) -1.25% -0.85% 3.27% 1.64% 7.50%
International & EM
Emerging Local (EMLC) -0.08% 1.42% 4.22% 1.56% 9.48%
International USD (BNDX) -0.17% 0.68% 1.68% 1.04% 2.08%
Emerging USD (EMB) -0.34% 1.72% 4.88% 2.33% 11.30%
International Local (IGOV) -0.44% -0.99% 0.17% -1.54% -1.37%
Municipals
Long-Term (MLN) 0.23% 2.41% 3.14% 2.53% 8.80%
Short-Term (SUB) 0.00% 0.52% 0.67% 0.93% 2.93%
Intermediate (MUB) -0.01% 1.35% 2.14% 1.53% 6.58%
High Yield (HYD) -0.19% 1.54% 3.70% 2.32% 7.41%

Explore the related Explorers: Taxable → · Municipal → · Specialty →

Commodities

The commodities complex faced downward pressure, with the Broad Commodities index (DJP) falling 0.64%. Energy markets led the decline after diplomatic progress in U.S.-Iran talks eased supply concerns, sending WTI Crude (USO) down 1.90%. Precious metals also lost ground, as Gold (GLD) shed 0.65% and Silver (SLV) dropped 1.01%. Agricultural products were mixed, with Corn (CORN) falling over 1% while Soybeans (SOYB) posted a modest gain.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Broad Commodities (DJP) -0.64% -9.66% -5.53% 18.90% 24.89%
Agriculture
Soybeans (SOYB) 0.29% -2.87% 1.08% 11.34% 8.71%
Broad (DBA) 0.08% -3.30% -0.74% 4.43% 4.53%
Wheat (WEAT) -0.83% -7.33% -0.44% 13.92% -5.21%
Corn (CORN) -1.06% -8.66% -10.80% -5.41% -8.56%
Sugar (CANE) -1.71% -7.17% -12.06% -5.79% -16.38%
Energy
Natural Gas (UNG) 0.26% 7.59% -5.00% -4.00% -33.35%
Broad (DBE) -1.50% -15.70% -10.96% 54.94% 36.08%
Brent Crude (BNO) -1.73% -21.60% -18.52% 52.26% 30.19%
WTI Crude (USO) -1.90% -20.03% -7.20% 62.94% 35.58%
Industrial Metals
Copper (CPER) -0.13% -0.28% 19.97% 11.01% 28.13%
Broad (DBB) -0.24% -2.55% 12.98% 10.03% 37.24%
Precious Metals
Gold (GLD) -0.65% -7.06% -6.96% -2.96% 24.01%
Broad (DBP) -0.69% -8.76% -7.04% -5.02% 31.30%
Silver (SLV) -1.01% -13.82% -4.24% -8.55% 80.04%
Platinum (PPLT) -1.24% -13.11% -12.88% -18.58% 31.58%
Palladium (PALL) -1.46% -6.65% -10.56% -21.28% 19.34%

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Cryptocurrency

Digital assets posted a broad-based recovery, providing a bright spot in an otherwise mixed market. Solana (SOLZ) led the advance with a 4.90% gain, followed by a 2.47% rise in Bitcoin (IBIT). Ethereum (ETHA) also participated in the rally, climbing 1.40%. This daily rebound comes after a period of significant weakness, with most major crypto assets still down more than 14% over the past month.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
XRP (XRP) -0.70% -15.17% -20.89% -38.16%
Ethereum (ETHA) 1.40% -16.12% -18.88% -41.77% -28.52%
Multi-Coin (NCIQ) 1.79% -15.18% -10.99% -29.97% -39.42%
Bitcoin (IBIT) 2.47% -15.04% -8.22% -26.49% -37.79%
Solana (SOLZ) 4.90% -14.17% -18.76% -42.20% -52.63%

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What to Watch Today

Looking ahead to Tuesday, market participants will be watching a slate of economic data for fresh insights into the health of the U.S. economy. Key releases include the S&P Global Flash U.S. Manufacturing and Services PMI reports for June, due at 9:45 AM ET, followed by the Richmond Fed Manufacturing Index. On the earnings front, logistics giant FedEx is scheduled to report its results after the market close, providing a key barometer of global economic activity. The U.S. Treasury is also set to hold several auctions, including one for the 2-Year note in the afternoon.

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.