Precious Metals Surge as Energy Sector Falters on Geopolitical News

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Macro Overview

U.S. equities took a slight pause after recent highs, with the S&P 500 (IVV) declining 0.18%. International markets were mixed, as Developed ex-U.S. (EFA) posted a small 0.10% gain while Emerging Markets (EEM) fell 0.42%. The standout performer was the commodities complex, where the Broad Commodities index (DJP) advanced 1.00%, in stark contrast to the quiet fixed income market where the U.S. Aggregate Bond (AGG) was nearly flat.

U.S. Size & Style

A risk-off sentiment was evident across the U.S. size and style spectrum, with smaller capitalization stocks bearing the brunt of the selling pressure. Small-Cap Value (IJS) was the weakest performer, dropping 1.10%, followed closely by the broader Small Cap index (IJR) which fell 0.98%. In contrast, large-cap segments showed more resilience, with declines of only around 0.20%. This daily underperformance from smaller stocks occurred despite their significant year-to-date leadership, with small caps still up over 24%.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Large Value (IVE) -0.21% 2.16% 5.49% 11.74% 21.94%
Large Cap (IVV) -0.18% 3.33% 6.66% 13.51% 24.00%
Large Growth (IVW) -0.20% 4.31% 7.55% 14.79% 25.44%
Mid Value (IJJ) -0.73% 2.39% 6.36% 14.98% 23.03%
Mid Cap (IJH) -0.62% 1.20% 5.35% 17.23% 24.10%
Mid Growth (IJK) -0.57% 0.08% 4.34% 19.19% 24.81%
Small Value (IJS) -1.10% 2.42% 7.73% 22.70% 39.10%
Small Cap (IJR) -0.98% 1.68% 8.17% 24.50% 36.16%
Small Growth (IJT) -0.86% 0.93% 8.59% 26.15% 33.21%

Explore the U.S. Size & Style Explorer →

U.S. Sectors & Industries

Sector performance was highly divergent, led by a sharp 2.07% decline in the Energy sector (XLE) following reports of diplomatic progress that could reopen the Strait of Hormuz. On the positive side, defensive Health Care (XLV) and cyclical Materials (XLB) were the day’s leaders, gaining 1.27% and 1.23% respectively. Consumer Discretionary (XLY) rose 0.30%, supported by strong earnings from Disney, while Communication Services (XLC) and Technology (XLK) both finished in negative territory.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
S&P 500 (SPY) -0.20% 3.36% 6.63% 13.49% 23.94%
Health Care (XLV) 1.27% 0.26% 13.47% 6.95% 26.05%
Materials (XLB) 1.23% 1.21% 2.54% 17.02% 21.13%
Consumer Discretionary (XLY) 0.30% 1.30% 0.69% -0.25% 9.23%
Financials (XLF) 0.21% 4.28% 12.82% 6.81% 13.92%
Real Estate (XLRE) 0.07% 1.16% 3.22% 13.74% 11.89%
Industrials (XLI) -0.03% 1.33% 8.35% 20.76% 25.15%
Consumer Staples (XLP) -0.05% 0.40% 2.22% 11.24% 8.99%
Technology (XLK) -0.53% 2.95% 12.38% 29.44% 43.68%
Utilities (XLU) -1.02% -4.59% -5.25% 3.64% 3.88%
Communication Services (XLC) -1.04% 1.16% -3.86% -5.27% 4.61%
Energy (XLE) -2.07% 7.69% -2.91% 29.93% 38.19%

Explore the U.S. Sectors & Industries Explorer →

Global Thematic

Thematic ETFs saw a clear divide between precious metals and risk-on growth themes. Gold and silver miners dominated the leaderboard, with funds like the Global X Gold Explorers ETF (GOEX) and the iShares MSCI Global Gold Miners ETF (RING) surging 8.31% and 7.91%, respectively. Conversely, cannabis-focused ETFs experienced significant declines, as the AdvisorShares Pure US Cannabis ETF (MSOS) fell 7.13%. Other notable laggards included bitcoin mining and solar energy funds.

Name (Ticker) 1-Day
Leaders
Global X Gold Explorers ETF (GOEX) 8.31%
iShares MSCI Global Gold Miners ETF (RING) 7.91%
VanEck Junior Gold Miners ETF (GDXJ) 7.42%
VanEck Gold Miners ETF (GDX) 7.39%
iShares MSCI Global Silver Miners ETF (SLVP) 7.28%
Laggards
AdvisorShares Pure US Cannabis ETF (MSOS) -7.13%
Amplify Seymour Cannabis ETF (CNBS) -6.51%
CoinShares Bitcoin Mining ETF (WGMI) -4.78%
Amplify Alternative Harvest ETF (MJ) -4.17%
Invesco Solar ETF (TAN) -3.93%

Explore the Thematic Explorer →

Developed ex-U.S. & Emerging Markets

Developed international markets delivered a mixed performance, with Canada (EWC) standing out with a 1.30% gain, while Germany (EWG) slipped 0.46%. Asian markets were generally weaker, evidenced by declines of 1.27% in Hong Kong (EWH) and 1.17% in South Korea (EWY). Emerging markets also saw pockets of strength and weakness, with South Africa (EZA) rising 1.35% against the broader index’s decline.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Developed Markets ex-U.S.
Developed ex-U.S. (EFA) 0.10% 2.93% 6.94% 13.63% 25.63%
Australia (EWA) 0.07% 7.30% 4.72% 16.71% 17.73%
Canada (EWC) 1.30% 5.21% 5.83% 13.23% 31.28%
France (EWQ) 0.02% 3.53% 7.87% 8.18% 16.94%
Germany (EWG) -0.46% 3.14% 4.99% 4.72% 7.27%
Hong Kong (EWH) -1.27% 8.12% -3.03% 8.20% 13.96%
Japan (EWJ) 0.58% 2.17% 7.18% 18.49% 32.33%
Netherlands (EWN) -0.39% 1.84% 9.50% 21.80% 40.51%
South Korea (EWY) -1.17% -6.11% -2.50% 73.98% 137.33%
Switzerland (EWL) 0.67% 0.31% 6.88% 8.93% 22.13%
U.K. (EWU) 0.06% 2.57% 5.63% 11.57% 24.33%
Emerging Markets
Emerging Markets (EEM) -0.42% 0.03% 0.99% 20.73% 37.19%
Brazil (EWZ) 0.06% 4.88% -8.20% 14.75% 39.76%
China (MCHI) -0.14% 10.02% -1.47% -6.15% -1.36%
India (INDA) -0.44% 1.51% 2.34% -6.92% -4.01%
Indonesia (EIDO) -0.16% 10.92% -13.53% -30.87% -25.92%
Malaysia (EWM) 0.11% 5.41% -2.86% 6.05% 21.60%
Mexico (EWW) -0.48% 1.58% 0.33% 12.23% 31.79%
South Africa (EZA) 1.35% 4.45% 0.75% -0.78% 30.00%
Taiwan (EWT) -0.50% -3.01% 9.63% 60.08% 80.56%
Thailand (THD) -0.91% 1.54% 5.65% 24.72% 30.57%

Explore the Global (ex-U.S.) Size & Style Explorer →

Fixed Income

Fixed income markets were broadly stable as the 10-year Treasury yield held around 4.61%. The core U.S. Aggregate Bond index (AGG) edged up just 0.05%, with most segments across the duration and credit spectrum posting minimal changes. One notable exception was the Convertible bond space (CWB), which declined 0.96%, reflecting its equity-like sensitivity during a down day for stocks. Bank Loans (BKLN) showed relative strength, gaining 0.15%.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Multisector
Long-Term (BLV) 0.08% -2.33% -1.30% -1.57% 0.00%
Core (AGG) 0.05% -0.57% -0.06% 0.13% 2.43%
Core Enhanced (IUSB) 0.03% -0.48% 0.05% 0.35% 2.74%
Short-Term (BSV) 0.01% 0.09% 0.44% 0.73% 2.68%
Government
Long-Term (SPTL) 0.16% -2.18% -1.34% -1.95% -0.85%
Short-Term (SPTS) 0.10% 0.25% 0.57% 1.01% 2.87%
Intermediate (SPTI) 0.02% -0.22% -0.03% -0.23% 1.67%
Ultrashort (BIL) 0.01% 0.29% 0.89% 2.11% 3.78%
Inflation Protected (TIP) -0.05% -0.50% -0.87% 0.68% 1.74%
Specialty
Bank Loans (BKLN) 0.15% 1.18% 0.79% 1.10% 4.39%
Mortgage Backed (MBB) 0.05% -0.47% 0.04% 0.48% 3.81%
Preferred Stock (PFF) 0.03% 1.32% -0.91% 2.25% 3.88%
Corporate (SPIB) 0.00% -0.19% 0.41% 0.68% 3.16%
High Yield (HYG) -0.04% 0.25% 0.96% 2.08% 5.10%
Convertible (CWB) -0.96% 0.17% 0.86% 18.04% 25.68%
International & EM
Emerging Local (EMLC) 0.27% 1.02% 2.55% 2.78% 8.74%
International Local (IGOV) 0.19% 1.02% -0.77% -0.48% -0.29%
International USD (BNDX) 0.04% -0.27% 0.93% 0.94% 1.44%
Emerging USD (EMB) -0.05% -0.64% 0.91% 1.89% 7.47%
Municipals
Short-Term (SUB) 0.11% 0.11% 0.55% 1.02% 2.01%
Intermediate (MUB) 0.06% -1.30% -0.09% 0.65% 4.87%
Long-Term (MLN) 0.06% -1.52% 0.09% 1.71% 7.43%
High Yield (HYD) 0.04% -2.16% -0.19% 0.91% 6.34%

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

Commodities

Commodities experienced significant divergence, driven by a powerful rally in precious metals. Gold (GLD) and Silver (SLV) both jumped 4.14%, leading the Broad Precious Metals index (DBP) to a 3.84% gain. In contrast, the energy complex weakened on news of potential diplomatic progress in the Middle East, which could ease supply concerns. As a result, WTI Crude (USO) fell 0.78%, pulling back from its strong one-month performance.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Broad Commodities (DJP) 1.00% 6.35% -8.27% 23.27% 38.64%
Agriculture
Wheat (WEAT) 0.84% 7.36% 1.31% 20.48% 13.22%
Sugar (CANE) 0.61% 2.05% -3.02% 2.20% -7.69%
Soybeans (SOYB) 0.00% 2.50% 0.00% 14.59% 18.10%
Broad (DBA) -0.11% 3.33% -2.61% 8.27% 10.42%
Corn (CORN) -0.73% 4.51% -6.87% -0.62% 4.26%
Energy
Brent Crude (BNO) 0.20% 14.47% -21.95% 60.35% 50.86%
Broad (DBE) -0.24% 10.74% -14.16% 63.53% 57.50%
Natural Gas (UNG) -0.31% -15.89% -8.46% -20.55% -26.16%
WTI Crude (USO) -0.78% 10.48% -20.32% 66.11% 53.13%
Industrial Metals
Copper (CPER) 1.77% 9.55% 12.44% 16.85% 50.13%
Broad (DBB) 1.15% 6.76% 2.12% 11.51% 36.84%
Precious Metals
Gold (GLD) 4.14% 3.04% -6.84% -1.68% 25.22%
Silver (SLV) 4.14% 1.91% -14.93% -12.96% 63.23%
Broad (DBP) 3.84% 2.97% -8.73% -4.80% 30.07%
Palladium (PALL) 1.31% 8.34% -8.26% -14.64% 15.56%
Platinum (PPLT) -0.06% 6.86% -10.95% -15.63% 31.16%

Explore the Commodities Explorer →

Cryptocurrency

Digital assets posted gains in a relatively quiet session, outperforming the broader equity market. Ethereum (ETHA) was the leader among major crypto assets, rising 2.33% and extending its one-month gain to over 12%. Bitcoin (IBIT) also advanced, climbing 0.96% on the day. Despite these positive daily moves, both assets remain down significantly on a year-to-date basis.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
XRP (XRP) -1.16% -1.49% -24.57% -41.81%
Solana (SOLZ) 0.47% -7.91% -14.25% -40.78% -57.14%
Multi-Coin (NCIQ) 0.93% 5.62% -20.31% -28.87% -46.26%
Bitcoin (IBIT) 0.96% 5.36% -20.61% -26.00% -43.08%
Ethereum (ETHA) 2.33% 12.60% -19.11% -35.44% -46.41%

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What to Watch Today

Looking ahead to Thursday, market participants will be closely watching a series of labor market data releases before the opening bell. Key reports include the weekly Initial Jobless Claims at 7:30 AM ET, along with preliminary Q2 Nonfarm Productivity and Unit Labor Costs. The corporate earnings season also continues, with notable pre-market reports from companies like ConocoPhillips and Warner Bros. Discovery, followed by after-market results from Airbnb and DraftKings.

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.