Broad Market Selloff: Emerging Markets and Rate-Sensitives Hit Hardest

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Macro Overview

Broad equity markets experienced unified drawdowns, with Emerging Markets (EEM) leading the decline at -3.44% on the day. Developed ex-U.S. (EFA) retreated -3.04%, while U.S. Equities represented by the S&P 500 (IVV) proved relatively resilient, dropping -1.46%. Conversely, Broad Commodities (DJP) eked out a +0.06% gain, highlighting a brief divergence from the risk-off equity sentiment. Fixed income assets like Taxable Core (AGG) also contracted, down -0.83% as yields adjusted higher across the curve.

U.S. Size & Style

Growth underperformed value across all capitalization tiers, particularly in the mid-cap segment where Mid Growth (IJK) sank -2.84%. Large Value (IVE) demonstrated the strongest relative performance, contained to a -0.95% daily loss despite closing -5.74% lower over the trailing month. Multiple benchmarks have breached technical oversold territory, with the S&P 500 (IVV) resting at an RSI of 28.57 and Mid Value (IJJ) dropping to an RSI of 24.17.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Large Value (IVE) -0.95% -5.74% -1.70% -1.69% 11.14%
Large Cap (IVV) -1.46% -5.70% -4.46% -4.66% 16.34%
Large Growth (IVW) -1.95% -5.69% -6.95% -7.33% 21.18%
Mid Value (IJJ) -1.73% -9.95% -3.47% -2.34% 7.79%
Mid Cap (IJH) -2.20% -8.44% -1.24% 0.03% 12.93%
Mid Growth (IJK) -2.84% -7.27% 0.63% 2.00% 17.41%
Small Value (IJS) -1.31% -8.72% -0.55% 0.93% 17.06%
Small Cap (IJR) -1.92% -8.38% -1.46% 0.35% 15.10%
Small Growth (IJT) -2.42% -8.08% -2.27% -0.26% 13.11%

U.S. Sectors & Industries

The Financials (XLF) sector was the sole positive outlier across the landscape, returning +0.18% to counter broad market weakness. Energy (XLE) closed nearly flat at -0.08%, though it remains significantly overbought with an RSI reading of 75.67 alongside a massive 32.65% year-to-date return. Rate-sensitive sectors absorbed the heaviest selling pressure, driving Utilities (XLU) down -4.06% and Real Estate (XLRE) down -3.17% into oversold conditions.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Financial (XLF) 0.18% -6.50% -10.19% -10.39% 0.23%
Energy (XLE) -0.08% 8.07% 35.53% 32.65% 31.57%
Communication Services (XLC) -0.80% -3.91% -3.37% -4.66% 17.29%
Consumer Staples (XLP) -0.83% -7.51% 4.02% 4.65% 5.23%
Health Care (XLV) -0.87% -7.33% -5.81% -6.12% 0.59%
Industrials (XLI) -1.46% -8.78% 4.08% 4.22% 23.24%
Materials (XLB) -1.59% -11.29% 4.08% 3.59% 10.58%
Consumer Discretionary (XLY) -1.79% -8.27% -11.41% -9.77% 10.46%
Technology (XLK) -2.27% -3.97% -6.30% -6.03% 27.59%
Real Estate (XLRE) -3.17% -6.82% 1.74% 0.59% 0.13%
Utilities (XLU) -4.06% -3.63% 5.52% 4.59% 15.87%

Global Thematic

Thematic strategies largely mirrored broader equity struggles, though First Trust SkyBridge Crypto Industry & Digital Economy (CRPT) managed a fractional +0.01% gain to lead the segment. Energy infrastructure funds exhibited relative strength, as both Pacer American Energy Infrastructure (USAI) and Alerian MLP (AMLP) avoided severe daily drawdowns. Cannabis and alternative energy exposures faced severe liquidations, with Global X Hydrogen (HYDR) retreating -7.12% and Amplify Seymour Cannabis (CNBS) falling -6.15%.

Name (Ticker) 1-Day
LEADERS
First Trust SkyBridge Crypto Industry & Digital Economy (CRPT) 0.01%
Pacer American Energy Infrastructure (USAI) 0.00%
Global X MLP (MLPA) -0.24%
Amplify Digital Payments (IPAY) -0.33%
Alerian MLP (AMLP) -0.38%
LAGGARDS
Global X Hydrogen (HYDR) -7.12%
REX Drone (DRNZ) -6.37%
Amplify Seymour Cannabis (CNBS) -6.15%
Amplify Alternative Harvest (MJ) -6.11%
AdvisorShares Pure US Cannabis (MSOS) -5.76%

Developed ex-U.S. & Emerging Markets

Asian markets accounted for the sharpest international declines, punctuated by a pronounced -6.71% contraction in South Korea (EWY). Emerging Markets (EEM) fell broadly, pushing regional assets like India (INDA) into deep oversold territory with an RSI registering 19.06. Within developed economies, European benchmarks broadly declined, notably pushing Germany (EWG) down -3.75% to an oversold RSI level of 24.44.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
DEVELOPED MARKETS
Canada (EWC) -1.65% -6.91% -0.88% -1.34% 31.72%
Switzerland (EWL) -2.14% -12.53% -5.47% -6.09% 7.70%
Hong Kong (EWH) -2.23% -6.06% 3.29% 5.04% 30.61%
Netherlands (EWN) -2.77% -10.53% -0.14% -0.88% 21.71%
U.K. (EWU) -2.79% -8.72% 0.71% -0.30% 20.42%
Developed ex-U.S. (EFA) -3.04% -10.78% -1.96% -2.54% 15.16%
Australia (EWA) -3.40% -8.08% 5.49% 4.24% 19.81%
Japan (EWJ) -3.43% -11.23% 0.77% 0.57% 19.12%
France (EWQ) -3.52% -12.58% -7.19% -7.36% 3.78%
Germany (EWG) -3.75% -13.81% -9.26% -10.12% 1.23%
South Korea (EWY) -6.71% -11.35% 37.71% 29.38% 126.76%
EMERGING MARKETS
Thailand (THD) -1.27% -9.94% 9.36% 9.27% 26.48%
Indonesia (EIDO) -1.37% -16.28% -18.54% -19.14% -1.46%
Malaysia (EWM) -1.96% -3.95% 6.40% 5.77% 30.88%
India (INDA) -1.96% -12.79% -13.96% -13.80% -8.22%
China (MCHI) -2.82% -9.51% -8.94% -8.09% -0.45%
Mexico (EWW) -3.20% -13.99% 1.48% 0.78% 38.76%
Taiwan (EWT) -3.33% -6.24% 13.14% 9.77% 45.09%
Emerging (EEM) -3.44% -10.75% 3.57% 1.70% 27.19%
South Africa (EZA) -3.62% -18.99% -7.43% -9.04% 39.08%
Brazil (EWZ) -3.95% -10.95% 12.85% 10.36% 39.13%

Fixed Income

Yield curves broadly shifted upward, penalizing extended duration profiles as Government Long (SPTL) and Taxable Long Term (BLV) fell -1.89% and -1.86%, respectively. Taxable Ultrashort (BIL) was the only fixed income category to post a positive 1-day return at +0.03%, reflecting a rotation into the shortest end of the curve. Credit-sensitive sectors were not immune to the risk-off environment, with Convertible (CWB) bonds retreating -2.26% alongside general weakness in High Yield (HYG).

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
MULTISECTOR
Taxable Short-Term (BSV) -0.31% -0.87% -0.11% -0.22% 4.01%
Taxable Core Enhanced (IUSB) -0.80% -1.95% -0.58% -0.63% 4.06%
Taxable Core (AGG) -0.83% -1.91% -0.55% -0.59% 3.79%
Taxable Long Term (BLV) -1.86% -3.98% -1.59% -1.55% 0.68%
GOVERNMENT
Taxable Ultrashort (BIL) 0.03% 0.28% 0.86% 0.78% 4.03%
Government Short (SPTS) -0.17% -0.47% 0.15% 0.02% 3.76%
Government Intermediate (SPTI) -0.63% -1.44% -0.50% -0.50% 4.04%
Inflation Protected (TIP) -0.80% -0.87% 0.25% 0.28% 3.50%
Government Long (SPTL) -1.89% -3.66% -1.20% -1.12% -0.82%
SPECIALTY
Bank Loans (BKLN) -0.24% -0.24% -1.01% -1.44% 5.26%
Corporate (SPIB) -0.63% -1.70% -0.53% -0.68% 4.99%
Taxable High Yield (HYG) -0.93% -2.09% -0.82% -1.16% 5.43%
Mortgage Backed (MBS) -0.99% -1.95% -0.30% -0.44% 4.93%
Preferred Stock (PFF) -1.43% -4.42% -2.15% -1.58% 2.47%
Convertible (CWB) -2.26% -2.66% 2.19% 3.37% 20.20%
INTERNATIONAL & EM
International USD (BNDX) -0.66% -2.19% -0.44% -0.62% 2.57%
International (IGOV) -1.30% -4.24% -1.02% -1.70% 4.96%
Emerging (EMLC) -1.46% -5.38% -1.95% -2.56% 10.46%
Emerging USD (EMB) -1.56% -4.21% -2.42% -2.43% 7.42%
MUNICIPALS
Municipal Short (SUB) -0.30% -0.59% 0.41% 0.25% 3.35%
Municipal Intermediate (MUB) -0.88% -2.16% -0.22% -0.60% 3.13%
Municipal High Yield (HYD) -0.95% -2.01% -1.02% -1.33% 0.97%
Municipal Long (MLN) -1.25% -1.75% -0.88% -0.59% 2.53%

Commodities

The commodity complex offered a distinct divergence from equities, anchored by Energy (DBE) advancing +2.46% on the back of notable price increases in Brent Crude (BNO) and WTI Crude (USO). Precious metals broke down significantly despite their traditional safe-haven status, with Silver (SLV) dropping -6.33% and Gold (GLD) losing -3.06%. Agricultural outputs were mixed, seeing Sugar (CANE) climb +1.46% while Wheat (WEAT) declined -2.10%.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Broad Commodities (DJP) 0.06% 13.01% 27.22% 25.87% 35.18%
AGRICULTURE
Sugar (CANE) 1.46% 13.24% 8.57% 7.12% -18.04%
Corn (CORN) -0.16% 6.70% 5.67% 6.03% -0.95%
Agriculture (DBA) -0.44% 3.15% 6.16% 5.21% 3.39%
Soybeans (SOYB) -0.58% 2.51% 9.40% 10.16% 13.13%
Wheat (WEAT) -2.10% 3.07% 14.36% 14.42% -5.97%
ENERGY
Nat Gas (UGA) 5.72% 47.13% 69.86% 69.97% 70.43%
Brent Crude Oil (BNO) 3.48% 56.20% 89.47% 86.86% 77.76%
WTI Crude Oil (USO) 3.47% 50.19% 78.49% 75.58% 64.70%
Energy (DBE) 2.46% 50.74% 75.76% 74.01% 66.63%
INDUSTRIAL METALS
Industrial Metals (DBB) -2.66% -6.21% 1.35% -2.62% 16.00%
Copper (CPER) -4.06% -10.56% -3.72% -7.47% 1.13%
PRECIOUS METALS
Platinum (PPLT) -2.52% -11.32% -3.01% -6.53% 93.42%
Palladium (PALL) -2.76% -19.82% -18.01% -11.98% 46.98%
Gold (GLD) -3.06% -11.79% 3.60% 4.31% 47.24%
Precious Metals (DBP) -3.66% -13.13% 2.64% 2.18% 54.04%
Silver (SLV) -6.33% -19.71% 0.97% -4.50% 101.71%

Cryptocurrency

Digital assets largely consolidated following significant year-to-date declines, maintaining a tighter trading range compared to broader equities. Solana (SOLZ) stood out as the sole positive performer within the group, gaining +0.22% on the session. Both Bitcoin (IBIT) and Ethereum (ETHA) registered marginal losses, shedding -0.13% and -0.37% respectively amid low momentum.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Bitwise XRP ETF (XRP) -0.68% 1.07% -25.15% -21.83%
Multi-Coin (NCIQ) -0.41% 4.05% -22.13% -21.32% -16.52%
Ethereum (ETHA) -0.37% 8.13% -28.89% -28.22% 7.84%
Bitcoin (IBIT) -0.13% 3.51% -20.32% -19.90% -16.89%
Solana (SOLZ) 0.22% 4.80% -30.44% -28.85% -37.71%

What to Watch Today

Market participants will focus heavily on upcoming durable goods orders and fresh consumer confidence prints to gauge whether current equity oversold levels represent a structural shift or a transient pullback. Fixed income markets will immediately respond to scheduled Treasury auctions, which could dictate whether long-end yields continue their aggressive upward repricing. Energy price stability remains a critical narrative driver going into the next session following the substantial crude oil appreciation.

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.