Macro Overview
Global equities presented a mixed picture on May 18, with the S&P 500 (IVV) edging lower by 0.07% as domestic investors digested recent macroeconomic data. International developed markets demonstrated relative strength, as the MSCI EAFE Index (EFA) advanced 0.92%, contrasting with a slight 0.15% decline in the MSCI Emerging Markets Index (EEM). The U.S. Aggregate Bond Index (AGG) remained functionally flat with a 0.01% loss, reflecting stabilized yield curve dynamics. Meanwhile, broad commodities gained traction, with the Bloomberg Commodity Index (DJP) adding 1.01% amid continued global supply constraints and energy market resilience.
U.S. Size & Style
Value-oriented equities materially outperformed their growth counterparts across all market capitalization tiers during Monday’s session. The S&P 500 Value Index (IVE) led the large-cap segment with a 0.65% gain, while the S&P 500 Growth Index (IVW) lagged, shedding 0.67%. Small-cap equities generally demonstrated resilience, highlighted by the S&P SmallCap 600 Value Index (IJS) advancing 0.45% and pushing its year-to-date return to 11.18%. Mid-cap blend components measured by the S&P MidCap 400 Index (IJH) remained subdued with a 0.10% decline, though underlying technical breadth remains supportive with over 52% of constituents above their 50-day moving average.
| Name (Ticker) | 1-Day % Change | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|
| Large Value (IVE) | 0.65% | 1.82% | 2.14% | 6.44% | 19.39% |
| Mid Value (IJJ) | 0.46% | -2.06% | -2.54% | 5.64% | 14.47% |
| Small Value (IJS) | 0.45% | -0.98% | 0.82% | 11.18% | 29.37% |
| Small Cap (IJR) | 0.35% | -0.73% | 2.61% | 12.01% | 25.58% |
| Small Growth (IJT) | 0.19% | -0.64% | 4.33% | 12.67% | 21.76% |
| Large Cap (IVV) | -0.07% | 4.00% | 7.91% | 8.61% | 25.80% |
| Mid Cap (IJH) | -0.10% | -1.03% | 0.90% | 9.57% | 18.31% |
| Mid Growth (IJK) | -0.63% | -0.15% | 4.16% | 13.28% | 21.74% |
| Large Growth (IVW) | -0.67% | 5.84% | 13.14% | 10.28% | 31.24% |
U.S. Sectors & Industries
The Energy Select Sector Index (XLE) paced domestic sector performance, surging 1.92% to extend its impressive one-year return to 46.30%. Defensive and cyclical components also found favorable positioning, with the Consumer Staples Select Sector Index (XLP) and the Financial Select Sector Index (XLF) advancing 1.49% and 1.25%, respectively. Conversely, the Technology Select Sector Index (XLK) experienced the sharpest pullback, declining 1.08% as investors rotated away from elevated duration-sensitive assets. Despite the daily decline, the technology sector maintains robust technical footing with an RSI of 68.35, hovering just below overbought territory.
| Name (Ticker) | 1-Day % Change | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|
| Energy (XLE) | 1.92% | 10.11% | 11.30% | 36.37% | 46.30% |
| Consumer Staples (XLP) | 1.49% | 4.17% | -1.88% | 11.20% | 7.56% |
| Financial (XLF) | 1.25% | -1.32% | -1.11% | -5.05% | 1.83% |
| Real Estate (XLRE) | 1.20% | -1.64% | 1.60% | 9.15% | 7.73% |
| Communication Services (XLC) | 0.78% | -1.78% | 2.41% | -0.31% | 16.35% |
| Health Care (XLV) | 0.43% | -2.07% | -7.20% | -5.48% | 11.44% |
| Utilities (XLU) | 0.16% | -4.81% | -2.99% | 3.64% | 9.95% |
| S&P 500 (SPY) | -0.07% | 4.01% | 7.93% | 8.62% | 25.74% |
| Materials (XLB) | -0.16% | -3.20% | -4.87% | 11.22% | 17.62% |
| Consumer Discretionary (XLY) | -0.18% | -3.40% | -0.40% | -2.40% | 7.71% |
| Industrials (XLI) | -0.38% | -1.59% | -2.18% | 10.38% | 20.34% |
| Technology (XLK) | -1.08% | 12.96% | 23.89% | 21.26% | 49.30% |
Global Thematic
Thematic equity performance showcased severe bifurcation, with cannabis and space exploration segments capturing significant bid interest. The Pure US Cannabis Index (MSOS) and the Seymour Cannabis Index (CNBS) led all thematic strategies, surging 4.54% and 4.42% respectively. Conversely, clean energy and digital asset infrastructure themes faced substantial selling pressure throughout the session. The WilderHill Clean Energy Index (PBW) plummeted 5.22%, closely followed by the Crypto Industry and Digital Economy Index (CRPT), which contracted by 5.19%.
| Name (Ticker) | 1-Day % Change |
|---|---|
| Leaders | |
| Pure US Cannabis (MSOS) | 4.54% |
| Seymour Cannabis (CNBS) | 4.42% |
| Space Innovators (NASA) | 3.77% |
| Cybersecurity (WCBR) | 3.65% |
| Cybersecurity (BUG) | 3.63% |
| Laggards | |
| WilderHill Clean Energy (PBW) | -5.22% |
| Crypto Industry & Digital Economy (CRPT) | -5.19% |
| Lithography & Semiconductor Photonics (EUV) | -4.98% |
| AI Infrastructure (TCAI) | -4.84% |
| Hydrogen (HYDR) | -4.64% |
Developed ex-U.S. & Emerging Markets
European equities provided notable strength within the developed ex-U.S. universe, spearheaded by the MSCI Germany Index (EWG) and the MSCI United Kingdom Index (EWU), which advanced 2.34% and 2.33%, respectively. Asian developed markets broadly underperformed, evidenced by the MSCI South Korea Index (EWY) sliding 1.54%, though it maintains a massive 206.36% one-year return. Within emerging markets, the MSCI Brazil Index (EWZ) rebounded 1.41%, helping offset regional weakness in the MSCI Indonesia Index (EIDO), which dropped 1.34% and remains in technically oversold territory with an RSI of 25.05. The MSCI China Index (MCHI) also slipped 0.49%, extending its one-month drawdown to 4.94% amid ongoing structural concerns.
| Name (Ticker) | 1-Day % Change | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|
| Developed Markets | |||||
| Germany (EWG) | 2.34% | -1.97% | -4.03% | -0.38% | 5.36% |
| U.K. (EWU) | 2.33% | -3.36% | -2.61% | 6.03% | 24.70% |
| France (EWQ) | 1.52% | -4.13% | -4.68% | -0.36% | 9.06% |
| Switzerland (EWL) | 1.23% | -0.90% | -3.70% | 3.20% | 15.89% |
| Australia (EWA) | 0.31% | -4.63% | -1.71% | 10.00% | 16.81% |
| Canada (EWC) | 0.21% | -1.64% | 1.95% | 6.73% | 33.21% |
| Japan (EWJ) | -0.16% | 0.81% | -0.50% | 12.61% | 31.23% |
| Netherlands (EWN) | -0.28% | 0.23% | 2.11% | 12.70% | 29.57% |
| Hong Kong (EWH) | -0.37% | 2.13% | 1.74% | 12.80% | 34.16% |
| South Korea (EWY) | -1.54% | 15.60% | 32.48% | 81.14% | 206.36% |
| Emerging Markets | |||||
| Brazil (EWZ) | 1.41% | -10.74% | -3.39% | 15.64% | 38.40% |
| Thailand (THD) | 1.04% | -0.18% | 0.80% | 20.38% | 35.07% |
| Mexico (EWW) | 0.89% | -1.96% | -2.81% | 12.36% | 35.86% |
| South Africa (EZA) | 0.68% | -9.11% | -10.26% | -1.42% | 41.28% |
| Taiwan (EWT) | 0.53% | 10.26% | 25.73% | 44.44% | 77.72% |
| India (INDA) | -0.31% | -6.71% | -10.28% | -11.49% | -12.48% |
| China (MCHI) | -0.49% | -4.94% | -7.53% | -6.18% | 5.86% |
| Malaysia (EWM) | -0.84% | 0.99% | -0.74% | 7.64% | 22.85% |
| Indonesia (EIDO) | -1.34% | -15.66% | -21.94% | -25.40% | -21.35% |
Fixed Income
Fixed income markets experienced muted daily price action as duration sensitivity dictated marginal underperformance at the long end of the curve. The Bloomberg U.S. Long Corporate Bond Index (BLV) and the Portfolio Long Term Treasury Index (SPTL) posted fractional declines of 0.19% and 0.04%, respectively, while short-duration instruments like the 1-3 Month Treasury Bill Index (BIL) finished flat. Credit risk exposure yielded slightly better results, with the High Yield Corporate Bond Index (HYG) edging up 0.10%, outpacing investment-grade peers. International sovereign debt provided the strongest fixed income returns of the day, led by the International Treasury Bond Index (IGOV) advancing 0.65%.
| Name (Ticker) | 1-Day % Change | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|
| Multisector | |||||
| Taxable Short-Term (BSV) | 0.01% | -0.65% | -0.59% | 0.03% | 3.75% |
| Taxable Core (AGG) | -0.01% | -1.52% | -1.86% | -0.58% | 4.39% |
| Taxable Core Enhanced (IUSB) | -0.04% | -1.48% | -1.73% | -0.47% | 4.68% |
| Taxable Multisector (PYLD) | -0.08% | -1.06% | -1.23% | -0.01% | 6.87% |
| Taxable Long Term (BLV) | -0.19% | -2.95% | -4.42% | -1.96% | 3.87% |
| Government | |||||
| Taxable Ultrashort (BIL) | 0.00% | 0.27% | 0.85% | 1.32% | 3.90% |
| Government Short (SPTS) | 0.00% | -0.37% | -0.15% | 0.30% | 3.55% |
| Government Intermediate (SPTI) | 0.00% | -1.57% | -1.81% | -0.91% | 3.42% |
| Government Long (SPTL) | -0.04% | -3.45% | -5.17% | -2.57% | 1.92% |
| Inflation Protected (TIP) | -0.12% | -0.40% | -0.11% | 1.02% | 4.37% |
| Specialty | |||||
| Taxable High Yield (HYG) | 0.10% | -0.86% | -0.21% | 0.63% | 6.16% |
| Bank Loans (BKLN) | 0.05% | 0.27% | 1.34% | 0.26% | 5.12% |
| Mortgage Backed (MBS) | -0.09% | -1.81% | -1.86% | -0.44% | 5.60% |
| Corporate (SPIB) | -0.12% | -1.03% | -1.15% | -0.18% | 5.05% |
| Preferred Stock (PFF) | -0.22% | -0.51% | -0.95% | 2.24% | 7.89% |
| Convertible (CWB) | -1.57% | 2.46% | 8.80% | 15.87% | 29.32% |
| International & EM | |||||
| International (IGOV) | 0.65% | -2.02% | -3.26% | -0.92% | 2.33% |
| International USD (BNDX) | 0.27% | -1.07% | -1.80% | -0.39% | 1.57% |
| Emerging (EMLC) | 0.20% | -2.66% | -2.96% | -0.18% | 10.13% |
| Emerging USD (EMB) | -0.10% | -1.70% | -1.82% | 0.02% | 10.10% |
| Municipals | |||||
| Municipal High Yield (HYD) | 0.04% | -0.88% | -0.40% | 0.35% | 5.78% |
| Municipal Short (SUB) | 0.01% | -0.31% | -0.53% | 0.33% | 3.02% |
| Municipal Long (MLN) | 0.00% | -1.42% | -0.43% | 0.46% | 6.03% |
| Municipal Intermediate (MUB) | -0.04% | -0.93% | -1.27% | 0.10% | 4.80% |
Commodities
Broad commodity indices generated notable positive momentum, propelled primarily by significant breakouts within the agricultural complex. The Teucrium Wheat Index (WEAT) and the Teucrium Corn Index (CORN) dominated the sector, leaping 3.69% and 3.31% respectively amid shifting global supply dynamics. Precious metals presented a more varied picture; the Physical Silver Index (SLV) advanced 1.30% to bolster its impressive 138.70% one-year return, while the Physical Palladium Index (PALL) fell 0.71%. The energy sector exhibited modest gains, led by a 1.85% rally in the United States Natural Gas Index (UNG), although benchmark crude products remained relatively range-bound.
| Name (Ticker) | 1-Day % Change | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|
| Broad Commodities (DJP) | 1.01% | 9.17% | 24.20% | 35.52% | 52.79% |
| Agriculture | |||||
| Wheat (WEAT) | 3.69% | 11.26% | 18.26% | 25.19% | 11.86% |
| Corn (CORN) | 3.31% | 4.40% | 7.45% | 5.70% | 4.46% |
| Soybeans (SOYB) | 1.90% | 2.65% | 7.47% | 15.14% | 15.88% |
| Agriculture (DBA) | 1.33% | 4.75% | 9.13% | 10.50% | 6.84% |
| Sugar (CANE) | -0.50% | 9.48% | 8.29% | 1.79% | -14.14% |
| Energy | |||||
| Natural Gas (UNG) | 1.85% | 6.46% | -2.78% | -5.87% | -30.94% |
| WTI Crude Oil (USO) | 0.72% | 28.65% | 88.02% | 115.86% | 119.22% |
| Energy (DBE) | 0.24% | 22.46% | 68.75% | 91.70% | 93.79% |
| Gasoline (UGA) | 0.07% | 26.41% | 74.93% | 98.96% | 103.51% |
| Brent Crude Oil (BNO) | -0.07% | 26.79% | 73.28% | 103.57% | 108.35% |
| Industrial Metals | |||||
| Copper (CPER) | 0.68% | 2.98% | 7.93% | 9.84% | 34.22% |
| Industrial Metals (DBB) | 0.16% | 2.04% | 7.79% | 11.03% | 41.71% |
| Precious Metals | |||||
| Silver (SLV) | 1.30% | -5.01% | -0.21% | 8.57% | 138.70% |
| Precious Metals (DBP) | 0.56% | -5.88% | -6.54% | 5.71% | 55.51% |
| Gold (GLD) | 0.27% | -6.17% | -8.70% | 5.58% | 42.21% |
| Platinum (PPLT) | -0.35% | -7.31% | -5.74% | -4.31% | 97.54% |
| Palladium (PALL) | -0.71% | -10.31% | -18.38% | -12.06% | 45.80% |
Cryptocurrency
Digital assets encountered synchronized selling pressure throughout the day, driving steep declines across all major layer-one protocols and broader asset baskets. The Solana Index (SOLZ) experienced the most severe contraction, plunging 4.89% to extend its year-to-date drawdown to 32.28%. The Ethereum Trust Index (ETHA) followed closely behind with a 4.53% loss, underperforming the broader market composites. Even the most mature assets failed to escape the downdraft, with the Bitcoin Trust Index (IBIT) surrendering 2.88%, signaling a continued technical consolidation phase.
| Name (Ticker) | 1-Day % Change | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|
| Solana (SOLZ) | -4.89% | -5.13% | 4.08% | -32.28% | -55.02% |
| Ethereum (ETHA) | -4.53% | -12.95% | 9.36% | -28.67% | -18.58% |
| XRP | -3.48% | -6.96% | -2.51% | -24.42% | – |
| Multi-Coin (NCIQ) | -3.04% | -2.59% | 13.44% | -15.85% | -28.38% |
| Bitcoin (IBIT) | -2.88% | -0.93% | 15.96% | -12.33% | -26.47% |
What to Watch Today
Market participants will closely monitor upcoming housing starts and building permits data to gauge the resilience of the real estate sector against the current interest rate backdrop. Furthermore, several key regional Federal Reserve presidents are scheduled to deliver remarks, which will be heavily scrutinized for any shifts in forward policy guidance. Investors will also assess preliminary manufacturing surveys to determine if industrial production is stabilizing after a prolonged period of uneven growth. Finally, the geopolitical landscape remains a critical factor for global supply chains, requiring careful attention from allocators managing commodity and emerging market exposures.
