Risk On: S&P 500 Adds 1.77% as Tech and Emerging Markets Surge

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Macro Overview

The S&P 500 (IVV) posted a strong 1.77% gain as risk appetite returned following news of a tentative US-Iran peace deal. International equities also participated, with Developed ex-U.S. (EFA) adding 0.66% during the session. However, Emerging Markets (EEM) stood out as a significant outlier, surging 3.27% to extend its one-year return past 52%. Meanwhile, Taxable Core (AGG) saw a muted 0.09% rise as yields slightly retreated, while Broad Commodities (DJP) slipped -0.63% driven by a sharp selloff in energy markets.

U.S. Size & Style

Growth significantly outperformed value across the capitalization spectrum, reflecting a renewed preference for technology and innovation names. Large Growth (IVW) paced the domestic equity market with a 2.86% advance, widening its year-to-date lead to 12.75%. In contrast, Large Value (IVE) managed a modest 0.40% gain as cyclical sectors faced headwinds. Small-cap equities exhibited weaker participation, with Small Value (IJS) shedding -0.47% despite holding a robust 41.16% return over the trailing one-year period.

Name (Ticker) 1-Day % Change 1 Month 3 Month YTD 1 Year
Large Growth (IVW) 2.86% 1.56% 19.07% 12.75% 32.67%
Large Cap (IVV) 1.77% 2.14% 14.31% 11.01% 28.00%
Large Value (IVE) 0.40% 2.77% 8.87% 8.69% 22.34%
Mid Growth (IJK) 0.94% 5.16% 16.20% 19.88% 32.80%
Mid Cap (IJH) 0.41% 5.72% 14.39% 15.95% 28.44%
Mid Value (IJJ) -0.06% 6.36% 12.55% 11.85% 23.93%
Small Growth (IJT) 0.80% 7.49% 19.61% 20.88% 33.45%
Small Cap (IJR) 0.11% 7.39% 18.02% 19.86% 37.15%
Small Value (IJS) -0.47% 7.31% 16.50% 18.76% 41.16%

U.S. Sectors & Industries

Technology (XLK) dominated the sector leaderboard, jumping 3.78% as investors digested favorable macro conditions and strong mega-cap momentum. Consumer Discretionary (XLY) and Industrials (XLI) also posted solid gains of 1.69% and 1.42%, respectively, signaling confidence in consumer and business activity. Conversely, Energy (XLE) plunged -3.48% after reports of a Middle East peace agreement weighed heavily on crude prices. Defensive segments underperformed the broader rally, with Real Estate (XLRE) and Health Care (XLV) declining -0.82% and -0.60%, respectively.

Name (Ticker) 1-Day % Change 1 Month 3 Month YTD 1 Year
Technology (XLK) 3.78% 8.81% 40.37% 33.38% 61.29%
Consumer Discretionary (XLY) 1.69% 1.75% 7.16% -0.51% 12.87%
Industrials (XLI) 1.42% 4.25% 8.82% 15.51% 26.93%
Materials (XLB) 0.61% 4.37% 7.20% 16.27% 22.50%
Communication Services (XLC) 0.48% -3.35% -1.66% -4.40% 10.72%
Utilities (XLU) 0.47% 1.98% -4.07% 5.53% 13.00%
Financial (XLF) 0.41% 4.81% 10.11% -1.71% 8.85%
Consumer Staples (XLP) -0.40% 0.99% 1.44% 10.66% 8.50%
Health Care (XLV) -0.60% 5.37% 2.49% -0.83% 14.31%
Real Estate (XLRE) -0.82% 4.07% 7.20% 12.24% 11.10%
Energy (XLE) -3.48% -6.54% -3.10% 25.05% 30.16%

Global Thematic

Thematic leadership was heavily concentrated in precious metals and digital economy pure-plays. Roundhill Memory ETF (DRAM) was the standout performer, rocketing 9.32% amid continued artificial intelligence hardware demand. Gold and silver mining themes occupied the remainder of the top spots, led by Global X Gold Explorers ETF (GOEX) which surged 7.67%. Conversely, energy infrastructure and cannabis themes populated the laggards list, with VanEck Energy Income ETF (EINC) dropping -2.91% alongside the broader energy sector rout.

Name (Ticker) 1-Day % Change
Leaders
Roundhill Memory ETF (DRAM) 9.32%
Global X Gold Explorers ETF (GOEX) 7.67%
U.S. Global GO GOLD and Precious Metal Miners ETF (GOAU) 7.61%
Sprott Active Gold & Silver Miners ETF (GBUG) 7.31%
VanEck Junior Gold Miners ETF (GDXJ) 7.31%
Laggards
VanEck Energy Income ETF (EINC) -2.91%
VanEck Space ETF (WARP) -2.84%
AdvisorShares Pure US Cannabis ETF (MSOS) -1.98%
Alerian Energy Infrastructure ETF (ENFR) -1.88%
Pacer American Energy Infrastructure ETF (USAI) -1.84%

Developed ex-U.S. & Emerging Markets

Asian markets demonstrated stark performance differentials, acting as primary catalysts for emerging market strength. South Korea (EWY) delivered an explosive 7.09% return, building on its staggering 117.50% year-to-date trajectory. Indonesia (EIDO) and Taiwan (EWT) followed suit with gains of 4.84% and 3.65%, respectively, though Indonesia remains oversold on longer timeframes. In developed Europe, the U.K. (EWU) slipped -0.60%, while Netherlands (EWN) added 1.44% to push its one-year gain to 39.01%.

Name (Ticker) 1-Day % Change 1 Month 3 Month YTD 1 Year
Developed ex-U.S.
Japan (EWJ) 2.00% 3.83% 13.44% 17.12% 34.42%
Netherlands (EWN) 1.44% 9.75% 20.65% 24.03% 39.01%
Hong Kong (EWH) 1.00% -7.65% -2.37% 4.57% 18.63%
Germany (EWG) 0.85% 3.15% 7.11% 0.40% 4.50%
Canada (EWC) 0.76% 3.07% 7.59% 9.78% 31.07%
Dev ex-U.S. (EFA) 0.66% 3.93% 9.78% 10.09% 22.71%
France (EWQ) 0.47% 6.06% 9.43% 4.11% 12.40%
Switzerland (EWL) 0.08% 2.68% 6.90% 4.69% 15.84%
U.K. (EWU) -0.60% 2.87% 3.41% 6.59% 20.64%
Australia (EWA) -0.74% 0.99% 3.66% 10.75% 13.80%
Emerging Markets
South Korea (EWY) 7.09% 18.22% 70.32% 117.50% 225.60%
Indonesia (EIDO) 4.84% -8.50% -16.64% -30.81% -27.96%
Taiwan (EWT) 3.65% 16.53% 51.98% 67.43% 99.23%
South Africa (EZA) 3.46% 2.71% 3.88% 0.56% 38.55%
Emerging (EEM) 3.27% 7.73% 23.42% 28.13% 52.39%
India (INDA) 1.92% 2.65% 2.50% -8.86% -8.85%
China (MCHI) 0.84% -2.38% -4.31% -7.96% 3.19%
Malaysia (EWM) 0.65% -4.61% -1.08% 3.55% 21.16%
Thailand (THD) 0.58% 5.45% 14.80% 25.63% 46.22%
Mexico (EWW) 0.55% 2.19% 10.30% 13.80% 34.11%
Brazil (EWZ) -0.37% -3.48% -1.46% 10.07% 31.08%

Fixed Income

Bond markets experienced a subdued session as a slight decline in interest rates offered mild support across the curve. Convertible bonds (CWB) experienced outsized participation, advancing 2.70% in tandem with the sharp equity market rally. Emerging market debt also caught a bid, with Local Currency (EMLC) climbing 0.90% and outpacing its USD-denominated counterpart (EMB). Duration-sensitive Government Long (SPTL) remained relatively flat with a 0.04% gain, while credit risk instruments like Taxable High Yield (HYG) moved 0.13% higher.

Name (Ticker) 1-Day % Change 1 Month 3 Month YTD 1 Year
Multisector
Taxable Core Enhanced (IUSB) 0.11% 1.21% 0.89% 0.78% 5.33%
Taxable Core (AGG) 0.09% 1.19% 0.65% 0.61% 4.97%
Taxable Short-Term (BSV) 0.06% 0.47% 0.39% 0.49% 3.74%
Taxable Long Term (BLV) -0.01% 2.49% 1.59% 0.68% 5.66%
Government
Inflation Protected (TIP) 0.14% 0.38% 0.80% 1.53% 4.90%
Government Intermediate (SPTI) 0.11% 0.72% -0.29% -0.20% 3.50%
Government Short (SPTS) 0.10% 0.36% 0.40% 0.65% 3.52%
Government Long (SPTL) 0.04% 2.64% 0.26% 0.04% 4.24%
Taxable Ultrashort (BIL) 0.00% 0.27% 0.88% 1.60% 3.85%
Specialty
Convertible (CWB) 2.70% 5.19% 19.70% 23.83% 38.96%
Preferred Stock (PFF) 0.74% 0.67% 3.44% 3.15% 9.62%
Bank Loans (BKLN) 0.15% -0.24% 1.58% -0.04% 4.59%
Mortgage Backed (MBS) 0.15% 1.37% 0.66% 1.02% 6.57%
Taxable High Yield (HYG) 0.13% 1.25% 2.60% 1.78% 6.95%
Corporate (SPIB) 0.09% 0.77% 1.09% 0.71% 5.27%
International & EM
Emerging (EMLC) 0.90% 2.70% 4.20% 2.32% 10.20%
Emerging USD (EMB) 0.36% 2.54% 3.85% 2.66% 11.94%
International (IGOV) 0.20% 1.39% 1.91% -0.19% -0.28%
International USD (BNDX) 0.02% 1.71% 1.27% 1.04% 2.29%
Municipals
Municipal Long (MLN) 0.23% 1.82% 1.50% 2.29% 9.07%
Municipal Intermediate (MUB) 0.11% 1.25% 0.72% 1.39% 6.51%
Municipal Short (SUB) 0.06% 0.55% 0.21% 0.87% 3.03%
Municipal High Yield (HYD) -0.04% 1.94% 2.39% 2.26% 7.98%

Commodities

Commodity complexes diverged sharply, pitting industrial and agricultural resilience against a collapsing energy narrative. WTI Crude (USO) and Brent Crude (BNO) tumbled -3.36% and -3.70%, respectively, following reports of an agreement that could reopen the Strait of Hormuz. Conversely, precious metals caught a robust safety bid, propelling Palladium (PALL) up 5.04% and Silver (SLV) up 3.56%. The agricultural space remained largely stable, with Wheat (WEAT) adding 0.90% to offset weakness in Sugar (CANE).

Name (Ticker) 1-Day % Change 1 Month 3 Month YTD 1 Year
Broad Commodities (DJP) -0.63% -9.43% -4.23% 21.51% 30.01%
Agriculture
Wheat (WEAT) 0.90% -6.51% -3.80% 12.87% -2.42%
Agriculture (DBA) 0.53% -5.21% -1.38% 3.37% 1.36%
Corn (CORN) 0.36% -7.06% -9.69% -4.91% -8.32%
Soybeans (SOYB) 0.04% -2.27% -2.50% 10.43% 8.30%
Sugar (CANE) -0.75% -6.61% -4.51% -4.46% -14.81%
Energy
Gasoline (UGA) -2.45% -16.44% 5.85% 66.14% 60.15%
Energy (DBE) -2.62% -14.43% 0.07% 63.64% 50.19%
WTI Crude Oil (USO) -3.36% -18.23% 1.10% 75.26% 51.10%
Brent Crude Oil (BNO) -3.70% -20.18% -6.10% 62.61% 44.54%
Industrial Metals
Copper (CPER) 0.25% 3.96% 13.87% 13.42% 33.19%
Industrial Metals (DBB) -1.17% 0.00% 6.94% 10.85% 41.03%
Precious Metals
Palladium (PALL) 5.04% -5.26% -13.33% -16.08% 29.22%
Silver (SLV) 3.56% -8.07% -12.68% -1.47% 92.51%
Platinum (PPLT) 3.35% -10.29% -12.64% -13.86% 43.38%
Precious Metals (DBP) 2.74% -6.00% -13.71% -1.19% 34.15%
Gold (GLD) 2.59% -4.97% -13.95% 0.06% 25.38%

Cryptocurrency

Digital assets staged a broad recovery, displaying extreme upside volatility after a challenging three-month period. Solana (SOLZ) surged 12.92%, leading the major altcoins despite remaining down -40.09% year-to-date. XRP (XRP) closely trailed with a 12.73% advance. Bitcoin (IBIT) generated the most measured response within the cohort, rising 4.72% as it continues to consolidate its long-term technical structure.

Name (Ticker) 1-Day % Change 1 Month 3 Month YTD 1 Year
Bitcoin (IBIT) 4.72% -15.80% -6.51% -23.99% -36.83%
Multi-Coin (NCIQ) 5.94% -15.97% -7.63% -27.06% -38.28%
Ethereum (ETHA) 9.47% -17.90% -13.40% -38.65% -28.11%
XRP (XRP) 12.73% -11.26% -9.06% -30.51%
Solana (SOLZ) 12.92% -15.86% -15.92% -40.09% -52.67%

What to Watch Today

Market participants will shift their focus to key macroeconomic data points surrounding the U.S. consumer and housing sectors. The release of May Retail Sales will be heavily scrutinized for signs of demand destruction amid persistent inflationary pressures. Additionally, May Building Permits and Housing Starts will provide crucial insights into whether the residential construction sector can maintain momentum in the face of elevated mortgage rates.

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.