Small Caps and Materials Lead Broad Equity Rally

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Macro Overview

Global equity markets advanced on Wednesday, with investors digesting the Federal Reserve’s Beige Book and key employment data. The S&P 500 (IVV) gained 0.45%, though it was outpaced by international stocks, as Developed ex-U.S. (EFA) and Emerging Markets (EEM) rose 0.54% and 0.57%, respectively. Fixed income markets were muted, with the U.S. Aggregate Bond (AGG) index inching up just 0.07%. Broad Commodities (DJP) were also little changed on the day, masking significant divergence among underlying components.

U.S. Size & Style

A clear rotation into smaller capitalization stocks characterized the U.S. equity session. Small-Cap Value (IJS) was a top performer, climbing 1.11%, with Mid-Cap Value (IJJ) also posting a strong 0.98% gain. This move contrasted with the more modest advances in large caps, where Large Growth (IVW) rose 0.51%. The outperformance of value and smaller stocks suggests a broadening of market participation.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Large Value (IVE) 0.41% 2.18% 4.32% 12.50% 18.76%
Large Cap (IVV) 0.45% 2.46% 1.02% 12.84% 20.91%
Large Growth (IVW) 0.51% 2.71% -1.65% 12.90% 22.49%
Mid Value (IJJ) 0.98% -0.66% 2.77% 12.37% 15.13%
Mid Cap (IJH) 0.68% -0.21% 0.10% 14.35% 17.23%
Mid Growth (IJK) 0.45% 0.26% -2.36% 16.03% 18.97%
Small Value (IJS) 1.11% 0.46% 3.65% 20.80% 27.55%
Small Cap (IJR) 0.97% -0.79% 3.62% 20.63% 24.80%
Small Growth (IJT) 0.88% -2.06% 3.58% 20.19% 21.83%

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U.S. Sectors & Industries

Sector performance was led by cyclical and materials-based industries, with Materials (XLB) surging 1.69% and Communication Services (XLC) adding 1.39%. In contrast, defensive and interest-rate sensitive sectors lagged, as Real Estate (XLRE) fell 0.70% and Technology (XLK) finished flat. Energy (XLE) continued its strong run with a 0.51% gain, pushing its RSI into overbought territory at 72, while Industrials (XLI) entered oversold territory with an RSI of 30.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
S&P 500 (SPY) 0.44% 2.43% 0.99% 12.80% 20.83%
Materials (XLB) 1.69% 5.00% 3.16% 17.71% 17.72%
Communication Services (XLC) 1.39% 3.86% -0.75% -3.95% 2.37%
Financials (XLF) 0.80% 1.26% 12.44% 6.18% 9.25%
Health Care (XLV) 0.75% 6.40% 18.65% 12.67% 27.91%
Energy (XLE) 0.51% 9.32% 13.12% 47.59% 48.28%
Consumer Staples (XLP) 0.33% 0.56% 5.25% 11.50% 9.01%
Utilities (XLU) 0.26% -3.79% -2.18% 1.29% 4.36%
Consumer Discretionary (XLY) 0.24% -1.06% -2.12% -3.43% 0.65%
Industrials (XLI) 0.03% -3.93% -0.57% 11.97% 16.23%
Technology (XLK) -0.02% 4.70% -7.26% 27.83% 42.07%
Real Estate (XLRE) -0.70% -2.97% 1.42% 10.04% 8.74%

Explore the U.S. Sectors & Industries Explorer →

Global Thematic

Thematic performance showed a stark divergence between precious metals miners and cybersecurity firms. Silver and gold miners dominated the leaderboard, with the Sprott Silver Miners & Physical Silver ETF Silver Miners ETF (SLVR) and Amplify Junior Silver Miners ETF (SILJ) gaining 5.61% and 5.36%, respectively. Conversely, cybersecurity ETFs faced a significant sell-off, as the WisdomTree Cybersecurity Fund (WCBR) and First Trust NASDAQ Cybersecurity ETF (CIBR) dropped 3.08% and 2.77%.

Name (Ticker) 1-Day
Leaders
Sprott Silver Miners & Physical Silver ETF Silver Miners ETF (SLVR) 5.61%
Amplify Junior Silver Miners ETF (SILJ) 5.36%
Sprott Junior Gold Miners ETF (SGDJ) 5.22%
iShares MSCI Global Silver Miners ETF (SLVP) 5.19%
VanEck Junior Gold Miners ETF (GDXJ) 4.72%
Laggards
WisdomTree Cybersecurity Fund (WCBR) -3.08%
First Trust NASDAQ Cybersecurity ETF (CIBR) -2.77%
Global X Cybersecurity ETF (BUG) -2.36%
Amplify Cybersecurity ETF (HACK) -2.21%
iShares Cybersecurity & Tech ETF (IHAK) -2.15%

Explore the Thematic Explorer →

Developed ex-U.S. & Emerging Markets

Emerging markets showed notable strength, led by a remarkable 4.16% surge in Brazil (EWZ). In developed Asia, South Korea (EWY) was a standout, rising 1.74%, while Hong Kong (EWH) also posted a solid 1.42% gain. European markets saw more modest advances, with Germany (EWG) up 0.18% and the U.K. (EWU) nearly flat.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Developed Markets ex-U.S.
Developed ex-U.S. (EFA) 0.54% 1.40% 3.55% 13.24% 22.24%
Australia (EWA) 1.18% 2.35% 3.34% 16.29% 15.72%
Canada (EWC) 1.11% 3.17% 3.53% 14.14% 27.82%
France (EWQ) 0.33% -2.06% 1.29% 3.74% 10.93%
Germany (EWG) 0.18% 1.56% 1.87% 4.44% 8.15%
Hong Kong (EWH) 1.42% -0.91% 0.29% 9.35% 12.68%
Japan (EWJ) 0.86% 3.95% 3.18% 19.58% 28.22%
Netherlands (EWN) 0.95% 1.77% 0.63% 20.39% 37.25%
South Korea (EWY) 1.74% 13.85% -16.63% 83.97% 154.35%
Switzerland (EWL) 0.58% -0.43% 3.63% 6.74% 17.07%
U.K. (EWU) 0.06% -0.39% 4.23% 11.22% 21.92%
Emerging Markets
Emerging Markets (EEM) 0.57% 4.77% -4.68% 23.36% 37.41%
Brazil (EWZ) 4.16% 3.93% 7.47% 21.04% 37.36%
China (MCHI) 0.24% -2.26% -4.01% -8.61% -9.84%
India (INDA) 0.79% 0.34% 4.04% -7.55% -4.55%
Indonesia (EIDO) 0.54% 5.09% 3.22% -29.24% -24.68%
Malaysia (EWM) 1.33% 0.04% -0.14% 4.78% 17.77%
Mexico (EWW) 0.74% -0.77% -2.21% 11.55% 25.32%
South Africa (EZA) 0.65% 10.01% 4.26% 3.88% 31.70%
Taiwan (EWT) -0.28% 13.34% 2.17% 72.25% 97.20%
Thailand (THD) 0.52% -1.29% -1.15% 23.66% 28.99%

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

Fixed Income

The fixed income landscape was exceptionally quiet, with most major bond categories registering minimal price changes. The U.S. Aggregate Bond (AGG) rose by just 0.07%, reflecting broad stability across the Treasury and corporate credit markets. International local currency debt (IGOV) was a slight outperformer with a 0.42% gain. In contrast, municipal bonds saw minor weakness, particularly on the long end of the curve, where the iShares National Muni Bond ETF (MUB) declined 0.11%.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Multisector
Long-Term (BLV) 0.12% 0.37% -3.03% -2.45% 0.86%
Core (AGG) 0.07% 0.15% -0.88% -0.41% 1.93%
Core Enhanced (IUSB) 0.07% 0.15% -0.74% -0.14% 2.21%
Short-Term (BSV) 0.06% 0.15% 0.20% 0.57% 2.09%
Government
Long-Term (SPTL) 0.08% 0.55% -2.75% -2.75% 0.52%
Inflation Protected (TIP) 0.05% 0.01% -1.16% 0.55% 1.08%
Intermediate (SPTI) 0.04% -0.08% -0.61% -0.84% 0.69%
Short-Term (SPTS) 0.03% 0.19% 0.43% 0.95% 2.47%
Ultrashort (BIL) 0.01% 0.30% 0.91% 2.39% 3.71%
Specialty
Convertible (CWB) 0.36% -0.17% -8.11% 14.79% 19.66%
Preferred Stock (PFF) 0.33% 0.06% -2.57% 0.95% 1.70%
Mortgage Backed (MBB) 0.11% 0.29% -0.85% -0.05% 3.09%
Corporate (SPIB) 0.09% 0.02% -0.36% 0.20% 2.31%
Bank Loans (BKLN) 0.05% 1.39% 1.84% 2.05% 4.76%
High Yield (HYG) 0.01% 0.57% 0.50% 2.11% 4.40%
International & EM
International Local (IGOV) 0.42% 0.20% -1.70% -1.37% -0.80%
Emerging Local (EMLC) 0.31% 1.18% 1.48% 2.98% 7.99%
Emerging USD (EMB) 0.06% 0.33% -0.92% 1.24% 6.12%
International USD (BNDX) -0.04% -0.59% -1.25% -0.37% 0.86%
Municipals
Short-Term (SUB) -0.01% 0.20% 0.19% 0.97% 1.70%
High Yield (HYD) -0.01% -0.58% -2.29% -0.18% 5.00%
Intermediate (MUB) -0.11% -0.80% -1.89% -0.59% 3.50%
Long-Term (MLN) -0.18% -1.29% -2.42% -0.29% 5.66%

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

Commodities

Precious metals were the clear winners in the commodities space, posting significant gains across the board. Palladium (PALL) led the advance with a 3.80% jump, followed by strong performances from Silver (SLV) and Gold (GLD), which rose 1.99% and 1.52%, respectively. In contrast, agricultural commodities softened, with the broad Invesco DB Agriculture Fund (DBA) falling 0.75%. Energy prices were mixed, as WTI Crude (USO) edged up 0.11%.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Broad Commodities (DJP) 0.06% 9.84% 5.94% 38.37% 49.28%
Agriculture
Sugar (CANE) 0.78% 21.21% 19.22% 19.53% 7.86%
Corn (CORN) -0.35% 14.56% 14.17% 14.04% 14.11%
Wheat (WEAT) -0.50% 17.01% 20.35% 39.51% 32.04%
Soybeans (SOYB) -0.58% 9.78% 10.79% 26.35% 24.64%
Broad (DBA) -0.75% 6.40% 7.93% 14.69% 10.45%
Energy
Natural Gas (UNG) 1.61% 6.86% -6.28% -12.32% -15.88%
Brent Crude (BNO) 0.32% 10.64% 5.39% 96.82% 79.23%
WTI Crude (USO) 0.11% 9.27% 2.83% 104.09% 83.88%
Broad (DBE) 0.00% 10.88% 10.49% 98.34% 84.59%
Industrial Metals
Copper (CPER) 1.18% -0.08% -2.64% 13.07% 38.75%
Broad (DBB) 0.75% 1.79% -3.83% 11.64% 32.32%
Precious Metals
Palladium (PALL) 3.80% 5.81% -1.48% -15.46% 18.06%
Silver (SLV) 1.99% 12.82% -13.12% -8.30% 59.00%
Gold (GLD) 1.52% 8.41% -2.23% 1.63% 23.71%
Broad (DBP) 1.40% 8.81% -5.07% -1.65% 27.02%
Platinum (PPLT) 1.14% 6.82% -8.84% -14.28% 24.77%

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Cryptocurrency

The digital asset market paused after a month of strong returns, with most major cryptocurrencies trading in a tight range. Bitcoin (IBIT) was virtually unchanged, while other prominent assets like Ethereum (ETHA) and Solana (SOLZ) posted modest declines of 0.99% and 0.70%, respectively. This consolidation follows a period where most crypto ETFs gained over 20% in the past month, suggesting a period of price discovery for the asset class.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Ethereum (ETHA) -0.99% 28.29% 25.52% -19.53% -44.12%
XRP (XRP) -0.86% 26.48% 9.89% -26.90%
Solana (SOLZ) -0.70% 35.87% 31.51% -21.21% -54.32%
Multi-Coin (NCIQ) -0.21% 23.69% 15.60% -14.57% -35.93%
Bitcoin (IBIT) 0.07% 22.87% 15.09% -11.80% -30.46%

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What to Watch Today

Looking ahead to Thursday, market participants will be closely watching a series of key economic data releases. The morning session will feature the July Trade Balance and revised second-quarter Productivity and Costs at 8:30 AM ET, followed by the important ISM Non-Manufacturing Composite for August at 10:00 AM ET. Additionally, Federal Reserve Governor Christopher Waller is scheduled to speak on the economic outlook. The earnings calendar includes pre-market reports from Campbell Soup and Ciena, with DocuSign and UiPath reporting after the close.

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.