Risk-On Resurgence: Emerging Markets and Tech Lead the Charge

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Macro Overview

U.S. Equities (IVV) and international risk assets demonstrated broad strength over the last 24 hours as global market sentiment stabilized. The Emerging Markets (EEM) segment acted as a notable outlier, advancing 4.39% to significantly outpace Developed Markets ex-U.S. (EFA), which posted a 3.11% gain. Concurrently, the broad Fixed Income complex registered positive returns alongside equities, while the Broad Commodities (DJP) index diverged by shedding 0.81% amid a cooling global demand outlook for physical materials.

U.S. Size & Style

Daily performance across U.S. equity style boxes exhibited a tilt toward smaller capitalizations and growth factors. The Small Cap Growth (IJT) ETF led the complex with a 3.09% single-day advance, contrasting with the 1.10% gain seen in the Large Cap Value (IVE) category. Over the longer 1-year trailing timeframe, small cap value strategies maintain technical leadership, underscoring a structural bid for cyclical exposure in domestic markets.

Name (Ticker) 1-Day % Change 1 Month 3 Month YTD 1 Year
Large Value (IVE) 1.10% 1.14% 6.16% 7.50% 20.15%
Large Cap (IVV) 1.66% -0.23% 9.37% 8.48% 24.14%
Large Growth (IVW) 2.24% -1.27% 12.24% 9.21% 27.44%
Mid Value (IJJ) 1.96% 3.49% 9.79% 10.93% 21.15%
Mid Cap (IJH) 2.51% 2.32% 10.68% 14.66% 25.20%
Mid Growth (IJK) 2.99% 1.22% 11.30% 18.08% 28.87%
Small Value (IJS) 1.81% 4.33% 13.78% 18.07% 37.02%
Small Cap (IJR) 2.44% 3.60% 14.45% 18.58% 32.55%
Small Growth (IJT) 3.09% 2.85% 14.91% 18.94% 28.20%

U.S. Sectors & Industries

Sector-level activity reflected a rotation into cyclical and growth-oriented components at the expense of defensive yields. The Technology (XLK) and Materials (XLB) ETFs captured the largest daily performance gains, rising 3.73% and 3.27% respectively as forward earnings guidance in the semiconductor and industrial metals space exceeded consensus. Conversely, the Energy (XLE) ETF contracted by 1.94%, weighed down by simultaneous declines in crude oil benchmarks and broader inventory builds.

Name (Ticker) 1-Day % Change 1 Month 3 Month YTD 1 Year
Technology (XLK) 3.73% 3.00% 30.62% 27.41% 53.32%
Materials (XLB) 3.27% -1.99% 3.22% 13.44% 18.61%
Industrials (XLI) 3.24% 0.06% 3.63% 13.23% 23.05%
Consumer Discretionary (XLY) 2.48% -2.57% 2.09% -2.41% 9.17%
Communication Services (XLC) 1.00% -2.99% -3.87% -4.46% 8.64%
Health Care (XLV) 0.81% 7.73% 1.23% -0.05% 15.53%
Financial (XLF) 0.75% 2.81% 6.54% -3.44% 4.76%
Utilities (XLU) 0.11% -2.41% -3.93% 3.90% 11.96%
Real Estate (XLRE) -0.16% 0.79% 6.63% 12.07% 10.64%
Consumer Staples (XLP) -0.26% 2.28% 1.37% 10.39% 7.55%
Energy (XLE) -1.94% -0.09% 0.89% 28.58% 36.65%

Global Thematic

Thematic segments tied to aerospace and advanced computing dominated the single-day performance leadership board. The Roundhill Memory ETF (DRAM) advanced 13.51%, supported by structural shortages in next-generation GPU components and accelerated data center builds. Meanwhile, cannabis-related themes populated the laggards list. The AdvisorShares Pure US Cannabis ETF (MSOS) declined 1.68% as federal regulatory rescheduling catalysts face renewed legislative delays.

Name (Ticker) 1-Day % Change
Top 5 Leaders
Roundhill Memory ETF (DRAM) 13.51%
Tema Space Innovators ETF (NASA) 12.80%
Roundhill Space & Technology ETF (MARS) 11.49%
Global X Space Tech ETF (ORBX) 11.44%
Defiance Drone and Modern Warfare ETF (JEDI) 9.25%
Bottom 5 Laggards
AdvisorShares Pure US Cannabis ETF (MSOS) -1.68%
Amplify Seymour Cannabis ETF (CNBS) -1.10%
Amplify Alternative Harvest ETF (MJ) -1.01%
Pacer American Energy Infrastructure ETF (USAI) -0.91%
Alerian MLP ETF (AMLP) -0.87%

Developed ex-U.S. & Emerging Markets

Asian equities heavily influenced the international performance metrics as the South Korea (EWY) ETF registered an 11.48% daily advance, pushing its 1-year return above 203%. In contrast, the Indonesia (EIDO) ETF remained flat on the day and continues to carry a deeply oversold 14-day RSI of 37.34. Broader European allocations, including the Netherlands (EWN) and Switzerland (EWL), generated steady 1-day returns exceeding 3% as central bank divergence continues to benefit non-U.S. risk premiums.

Name (Ticker) 1-Day % Change 1 Month 3 Month YTD 1 Year
Developed Markets ex-U.S.
Dev ex-U.S. (EFA) 3.11% 0.95% 5.78% 9.06% 20.93%
South Korea (EWY) 11.48% 3.16% 49.75% 104.63% 203.73%
Netherlands (EWN) 4.81% 6.51% 16.16% 22.27% 34.94%
Japan (EWJ) 3.24% -0.09% 7.52% 14.17% 30.91%
Switzerland (EWL) 3.00% 2.26% 4.69% 4.92% 15.65%
France (EWQ) 2.83% 2.31% 5.29% 3.45% 10.96%
Australia (EWA) 2.77% -2.13% -0.14% 10.58% 12.43%
Germany (EWG) 2.42% -0.61% 3.60% -0.54% 2.04%
U.K. (EWU) 2.38% 0.54% 1.27% 6.64% 20.73%
Hong Kong (EWH) 2.34% -10.03% -6.30% 2.96% 15.59%
Canada (EWC) 1.35% 0.60% 3.56% 8.46% 30.11%
Emerging Markets
Emerging (EEM) 4.39% -0.57% 14.74% 23.38% 44.65%
South Africa (EZA) 4.92% -7.61% -6.71% -3.66% 30.82%
Taiwan (EWT) 4.54% 5.46% 42.47% 61.26% 91.96%
Mexico (EWW) 3.94% -3.59% 3.55% 11.55% 30.39%
Brazil (EWZ) 3.05% -9.96% -7.44% 9.57% 30.11%
Thailand (THD) 2.71% 4.62% 10.82% 24.45% 43.50%
Malaysia (EWM) 1.59% -6.83% -2.43% 2.63% 19.15%
India (INDA) 1.04% -1.30% -3.00% -11.58% -13.63%
China (MCHI) 0.43% -7.43% -6.81% -9.54% -0.56%
Indonesia (EIDO) 0.00% -17.16% -25.05% -35.19% -33.54%

Fixed Income

Bond markets responded aggressively to revised duration expectations, driving the Long-Term Corporate (BLV) ETF and Long-Term Government (SPTL) ETF higher by 1.21% and 1.24%, respectively. Credit spreads also tightened incrementally, allowing the Convertible Securities (CWB) ETF to benefit from underlying equity beta and rise 2.19% on the session. At the short end of the curve, the Ultrashort Treasury (BIL) ETF remained anchored near zero daily movement, reflecting stable overnight funding rates.

Name (Ticker) 1-Day % Change 1 Month 3 Month YTD 1 Year
Multisector
Taxable Long Term (BLV) 1.21% 0.90% 0.89% 0.88% 6.00%
Taxable Core (AGG) 0.58% 0.30% 0.22% 0.64% 5.01%
Taxable Core Enhanced (IUSB) 0.57% 0.26% 0.35% 0.74% 5.28%
Taxable Short-Term (BSV) 0.23% 0.07% 0.08% 0.42% 3.70%
Government
Government Long (SPTL) 1.24% 0.78% -0.27% 0.31% 4.73%
Government Intermediate (SPTI) 0.50% -0.02% -0.53% -0.13% 3.68%
Inflation Protected (TIP) 0.36% -0.39% 0.33% 1.38% 4.90%
Government Short (SPTS) 0.14% 0.15% 0.22% 0.59% 3.49%
Taxable Ultrashort (BIL) 0.01% 0.29% 0.90% 1.56% 3.87%
Specialty
Convertible (CWB) 2.19% -0.22% 13.45% 19.15% 32.16%
Preferred Stock (PFF) 0.81% -1.65% 1.30% 2.23% 7.75%
Mortgage Backed (MBS) 0.65% 0.19% 0.38% 1.02% 6.49%
Taxable High Yield (HYG) 0.59% 0.46% 1.63% 1.65% 6.61%
Corporate (SPIB) 0.45% 0.19% 0.43% 0.68% 5.17%
Bank Loans (BKLN) 0.10% -0.53% 1.08% -0.13% 4.34%
International & EM
Emerging (EMLC) 1.03% -0.12% 0.86% 1.12% 8.92%
International (IGOV) 1.02% -1.35% -0.05% -0.38% -0.17%
Emerging USD (EMB) 0.96% 0.74% 2.01% 2.19% 10.92%
International USD (BNDX) 0.58% 0.65% 0.56% 0.85% 1.99%
Municipals
Municipal Long (MLN) 0.34% 0.38% 1.67% 2.15% 9.11%
Municipal Intermediate (MUB) 0.22% 0.37% 0.63% 1.29% 6.65%
Municipal High Yield (HYD) 0.21% 0.71% 2.55% 2.26% 8.15%
Municipal Short (SUB) 0.04% 0.25% 0.14% 0.79% 3.00%

Commodities

Widespread selling pressure enveloped the energy complex, pushing the Brent Crude Oil (BNO) benchmark down 4.53% amid rising global supply inventories. In a divergence, the precious metals cohort captured safe-haven and industrial bids, led by the Silver Trust (SLV) which increased 5.48% and successfully defended its 1-year performance standing above 84%. The broader Agriculture complex remained subdued, with the Teucrium Corn Fund (CORN) sliding 2.05% due to favorable seasonal crop yield forecasts.

Name (Ticker) 1-Day % Change 1 Month 3 Month YTD 1 Year
Broad Commodities (DJP) -0.81% -8.78% -1.20% 23.00% 34.59%
Agriculture
Agriculture (DBA) -0.11% -7.17% -1.50% 3.06% 0.71%
Sugar (CANE) -0.21% -6.07% -1.77% -3.23% -15.20%
Soybeans (SOYB) -0.29% -3.83% -2.43% 10.34% 10.79%
Wheat (WEAT) -0.49% -6.50% -1.84% 12.32% -1.19%
Corn (CORN) -2.05% -10.87% -9.72% -5.70% -8.43%
Energy
Nat Gas (UGA) -1.29% -11.30% 18.78% 71.81% 70.18%
Energy (DBE) -3.47% -6.44% 12.28% 72.23% 65.70%
WTI Crude Oil (USO) -4.07% -7.09% 19.23% 86.28% 72.19%
Brent Crude Oil (BNO) -4.53% -10.71% 11.56% 73.48% 64.81%
Industrial Metals
Copper (CPER) 3.23% -1.14% 7.81% 11.38% 29.71%
Industrial Metals (DBB) 1.64% -1.77% 3.71% 10.99% 39.78%
Precious Metals
Silver (SLV) 5.48% -22.03% -21.94% -5.59% 84.58%
Palladium (PALL) 4.88% -15.55% -22.24% -20.17% 18.83%
Precious Metals (DBP) 3.49% -13.92% -19.62% -3.91% 33.10%
Platinum (PPLT) 3.30% -19.00% -20.91% -16.16% 36.26%
Gold (GLD) 3.13% -11.12% -18.88% -2.52% 25.28%

Cryptocurrency

Digital asset markets rebounded from deeply oversold levels, capitalizing on renewed risk-on sentiment to drive comprehensive single-day gains. The Solana ETF (SOLZ) paced the segment with a 5.25% advance, attempting to reverse a 62.61% trailing 1-year drawdown. The flagship Bitcoin ETF (IBIT) generated a moderate 2.77% gain, though the asset class writ large remains burdened by short-term technical resistance.

Name (Ticker) 1-Day % Change 1 Month 3 Month YTD 1 Year
Bitcoin (IBIT) 2.77% -22.42% -10.03% -27.39% -41.70%
Multi-Coin (NCIQ) 2.88% -23.52% -12.11% -30.89% -43.95%
Ethereum (ETHA) 3.42% -28.13% -19.06% -43.38% -40.40%
XRP (XRP) 4.07% -22.83% -17.81% -37.72%
Solana (SOLZ) 5.25% -32.25% -23.79% -46.83% -62.61%

What to Watch Today

Tomorrow’s trading session will be heavily dictated by the release of the preliminary University of Michigan Consumer Sentiment index and updated inflation expectations. Market participants are positioning to assess whether softening retail demand will provide the Federal Reserve with sufficient macroeconomic cover to officially signal a rate cut cycle by late Q3. Additionally, volatility across the Asian currency pairs may introduce secondary contagion effects into early U.S. trading hours.

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.