Energy Sector Surges as Technology Stocks Stumble

Share

Macro Overview

U.S. equities experienced a notable divergence as a sell-off in technology shares pulled the S&P 500 (IVV) down 0.49%. This weakness extended to international markets, with Developed ex-U.S. equities (EFA) falling 1.23% and Emerging Markets (EEM) seeing a steeper decline of 2.74%. In contrast, the Broad Commodities index (DJP) acted as a counterweight, gaining 0.65% on the back of a sharp rise in energy prices. Fixed income markets did not provide a haven, as the U.S. Aggregate Bond index (AGG) also retreated by 0.46%.

U.S. Size & Style

A clear rotation from growth to value was evident across all U.S. market capitalizations. Large Value (IVE) significantly outperformed, finishing nearly flat with a minor 0.06% loss, while Large Growth (IVW) fell 0.77%. This trend was even more pronounced further down the cap scale, with Mid-Cap Growth (IJK) posting the day’s largest style-box loss of 1.81%. Small caps also saw value outperform growth, though all segments ended the day in negative territory.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Large Value (IVE) -0.06% 2.27% 9.26% 9.65% 18.98%
Large Cap (IVV) -0.49% 1.64% 13.69% 10.24% 21.83%
Large Growth (IVW) -0.77% 1.18% 17.67% 10.58% 24.02%
Mid Value (IJJ) -0.69% 3.22% 9.15% 11.71% 17.51%
Mid Cap (IJH) -1.24% 2.31% 10.37% 14.90% 21.07%
Mid Growth (IJK) -1.81% 1.35% 11.39% 17.77% 24.21%
Small Value (IJS) -0.77% 3.61% 12.60% 18.81% 33.65%
Small Cap (IJR) -0.97% 5.92% 15.26% 21.53% 32.51%
Small Growth (IJT) -1.13% 8.40% 18.03% 24.29% 31.50%

Explore the U.S. Size & Style Explorer →

U.S. Sectors & Industries

Sector performance was sharply divided, driven by a rally in energy and a retreat in technology. The Energy sector (XLE) was the standout leader, surging 2.84% as geopolitical tensions pushed crude oil prices higher. Conversely, the Technology sector (XLK) was the primary laggard, dropping 2.39% following a disappointing earnings report from a major chipmaker. Defensive sectors also found favor, with Health Care (XLV) gaining 1.53% and entering overbought territory with an RSI of 71, while Financials (XLF) also showed an overbought RSI of 75 despite a small daily loss.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
S&P 500 (SPY) -0.48% 1.64% 13.71% 10.23% 21.80%
Energy (XLE) 2.84% -4.58% -8.53% 23.87% 30.71%
Health Care (XLV) 1.53% 7.94% 12.68% 7.13% 24.52%
Real Estate (XLRE) 1.35% 1.29% 8.53% 12.96% 11.92%
Consumer Staples (XLP) 0.90% 2.41% 5.16% 10.62% 6.23%
Utilities (XLU) 0.88% 3.70% -0.60% 8.48% 14.54%
Communication Services (XLC) 0.73% -0.32% -0.45% -5.14% 5.06%
Financials (XLF) -0.16% 7.54% 12.76% 3.22% 8.04%
Consumer Discretionary (XLY) -0.53% 2.41% 9.15% -1.30% 8.33%
Materials (XLB) -0.90% 2.12% 3.24% 14.51% 15.91%
Industrials (XLI) -1.71% 4.96% 11.29% 18.19% 24.05%
Technology (XLK) -2.39% -0.50% 30.53% 24.76% 41.31%

Explore the U.S. Sectors & Industries Explorer →

Global Thematic

The day’s thematic performance mirrored the broader sector rotation, with energy-focused funds dominating the leaderboard. MLP and energy infrastructure ETFs like Invesco SteelPath MLP & Energy Infrastructure ETF (PIPE) and Global X MLP & Energy Infrastructure ETF (MLPX) both gained 3.17%. On the other end of the spectrum, high-growth and technology-related themes suffered significant losses. The Defiance Drone and Modern Warfare ETF (JEDI) and CoinShares Bitcoin Mining ETF (WGMI) were among the worst performers, declining 7.03% and 6.82% respectively.

Name (Ticker) 1-Day
Leaders
ALPS Medical Breakthroughs ETF (SBIO) 4.63%
Invesco SteelPath MLP & Energy Infrastructure ETF (PIPE) 3.17%
Global X MLP & Energy Infrastructure ETF (MLPX) 3.17%
VanEck Energy Income ETF (EINC) 3.04%
Tortoise North American Pipeline ETF (TPYP) 3.00%
Laggards
Defiance Drone and Modern Warfare ETF (JEDI) -7.03%
CoinShares Bitcoin Mining ETF (WGMI) -6.82%
Roundhill Space & Technology ETF (MARS) -6.72%
Sprott Junior Uranium Miners ETF (URNJ) -6.67%
Tuttle Capital Pure Play Photonics ETF (FOTO) -6.62%

Explore the Thematic Explorer →

Developed ex-U.S. & Emerging Markets

International equity markets broadly declined, with Asian technology hubs bearing the brunt of the semiconductor-led sell-off. South Korea (EWY) and Taiwan (EWT) posted the most significant losses, falling 4.51% and 5.02%, respectively. This weakness dragged the broader Emerging Markets index (EEM) down 2.74%. A notable exception to the negative trend was commodity-rich Canada (EWC), which managed a 0.52% gain, benefiting from the rally in energy prices.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Developed Markets ex-U.S.
Developed ex-U.S. (EFA) -1.23% 3.46% 7.57% 10.17% 21.65%
Australia (EWA) -0.71% 1.67% -0.04% 8.93% 11.69%
Canada (EWC) 0.52% 1.04% 5.23% 8.72% 28.10%
France (EWQ) -1.24% 2.69% 5.82% 3.54% 9.69%
Germany (EWG) -1.43% 1.84% 6.92% 0.91% 1.55%
Hong Kong (EWH) -0.75% -1.89% -7.93% 0.74% 11.51%
Japan (EWJ) -2.31% 3.14% 9.42% 15.89% 33.35%
Netherlands (EWN) -2.37% 3.41% 15.79% 18.95% 30.49%
South Korea (EWY) -4.51% 3.48% 42.53% 86.47% 164.61%
Switzerland (EWL) -0.46% 5.77% 9.50% 7.62% 18.34%
U.K. (EWU) -0.19% 3.08% 3.22% 8.71% 23.64%
Emerging Markets
Emerging Markets (EEM) -2.74% 2.26% 15.25% 20.73% 39.38%
Brazil (EWZ) -0.80% 2.82% -9.07% 10.07% 26.67%
China (MCHI) -0.46% -4.26% -6.27% -13.23% -3.40%
India (INDA) -1.10% 4.20% 4.16% -8.73% -10.89%
Indonesia (EIDO) 1.78% 8.95% -19.72% -34.57% -28.75%
Malaysia (EWM) -0.29% -0.68% -1.04% 1.31% 17.68%
Mexico (EWW) -1.82% 1.38% 0.26% 9.82% 27.01%
South Africa (EZA) -1.61% 0.88% -5.08% -5.62% 27.24%
Taiwan (EWT) -5.02% 3.87% 41.85% 60.37% 84.93%
Thailand (THD) -1.39% 1.45% 7.89% 23.32% 44.57%

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

Fixed Income

Fixed income markets saw broad-based declines, with duration being a key factor in performance. Longer-term bond funds experienced the largest drops, as seen in the 1.04% fall for Long-Term Corporate & Government bonds (BLV). The core U.S. Aggregate Bond index (AGG) was down 0.46%. Credit-focused funds were more resilient, with High Yield (HYG) slipping just 0.14%. Floating-rate Bank Loans (BKLN) bucked the trend entirely, posting a modest 0.15% gain.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Multisector
Short-Term (BSV) -0.18% 0.38% 0.27% 0.49% 3.29%
Core Enhanced (IUSB) -0.43% 0.36% 0.21% 0.48% 4.37%
Core (AGG) -0.46% 0.38% 0.03% 0.30% 4.13%
Long-Term (BLV) -1.04% -0.21% -0.56% -0.37% 3.95%
Government
Ultrashort (BIL) 0.02% 0.29% 0.89% 1.83% 3.82%
Short-Term (SPTS) -0.14% 0.24% 0.32% 0.61% 3.17%
Inflation Protected (TIP) -0.29% -0.02% 0.15% 1.04% 3.44%
Intermediate (SPTI) -0.39% 0.39% -0.37% -0.34% 2.86%
Long-Term (SPTL) -1.00% -0.08% -1.02% -0.81% 3.17%
Specialty
Bank Loans (BKLN) 0.15% 0.30% 1.11% 0.27% 3.97%
High Yield (HYG) -0.14% 0.88% 1.56% 1.89% 5.58%
Corporate (SPIB) -0.33% 0.47% 0.43% 0.60% 4.30%
Mortgage Backed (MBB) -0.47% 0.47% -0.02% 0.65% 5.53%
Preferred Stock (PFF) -0.75% -0.83% 1.49% 1.02% 4.16%
Convertible (CWB) -1.41% -1.23% 11.06% 17.25% 27.30%
International & EM
International USD (BNDX) -0.41% 0.25% 0.94% 0.75% 1.80%
Emerging USD (EMB) -0.43% 0.98% 3.38% 2.27% 9.71%
Emerging Local (EMLC) -0.43% 1.89% 2.96% 1.82% 7.87%
International Local (IGOV) -0.54% -1.02% -0.85% -2.18% -3.37%
Municipals
Short-Term (SUB) -0.08% 0.10% 0.55% 0.88% 2.52%
High Yield (HYD) -0.17% 0.84% 2.51% 2.88% 7.60%
Intermediate (MUB) -0.31% 0.52% 1.44% 1.73% 6.16%
Long-Term (MLN) -0.39% 1.16% 2.30% 2.98% 9.27%

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

Commodities

The commodities complex was defined by a powerful rally in energy markets, driven by heightened geopolitical risks in the Middle East. WTI Crude (USO) jumped 4.38% while Brent Crude (BNO) climbed 4.98%. This strength lifted the broader Broad Commodities index (DJP) by 0.65%. In contrast, precious metals faced selling pressure, with Gold (GLD) falling 1.21% and Silver (SLV) declining by a more substantial 2.94%.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Broad Commodities (DJP) 0.65% -4.60% -7.98% 19.60% 31.28%
Agriculture
Corn (CORN) 1.03% 3.34% -2.33% -0.56% 0.51%
Wheat (WEAT) 0.70% 3.64% 1.05% 15.62% 1.72%
Soybeans (SOYB) 0.40% 4.80% 4.38% 15.92% 17.04%
Broad (DBA) 0.04% 4.36% 2.00% 7.95% 11.00%
Sugar (CANE) 0.00% 3.11% 0.71% 1.90% -9.18%
Energy
Brent Crude (BNO) 4.98% -18.11% -21.66% 48.06% 37.39%
WTI Crude (USO) 4.38% -18.12% -21.12% 57.49% 42.42%
Broad (DBE) 3.11% -12.20% -11.65% 54.08% 44.45%
Natural Gas (UNG) 0.43% 0.77% 1.82% -4.08% -22.17%
Industrial Metals
Broad (DBB) -0.70% -5.71% 2.55% 5.01% 29.68%
Copper (CPER) -1.19% -1.81% 9.71% 6.95% 20.03%
Precious Metals
Platinum (PPLT) 0.07% -8.28% -16.59% -20.40% 18.57%
Palladium (PALL) -0.60% 2.95% -13.55% -20.86% 13.39%
Gold (GLD) -1.21% -4.73% -12.58% -4.75% 22.81%
Broad (DBP) -1.41% -6.14% -13.77% -7.73% 27.86%
Silver (SLV) -2.94% -11.55% -17.41% -15.46% 62.91%

Explore the Commodities Explorer →

Cryptocurrency

Digital assets posted modest losses, trading in line with the broader risk-off sentiment seen in technology stocks. Bitcoin (IBIT) was a notable exception, ending the session nearly unchanged with a slight 0.08% gain. Ethereum (ETHA) registered a minor loss of 0.30%. Other alternative coins saw larger pullbacks, with XRP (XRP) leading the declines among major assets with a 2.41% drop.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
XRP (XRP) -2.41% 2.12% -14.82% -38.94%
Solana (SOLZ) -0.85% 28.58% -0.54% -35.29% -49.83%
Ethereum (ETHA) -0.30% 13.82% -15.30% -39.77% -29.85%
Multi-Coin (NCIQ) -0.08% 6.83% -8.90% -30.02% -42.07%
Bitcoin (IBIT) 0.08% 5.89% -7.54% -27.19% -41.12%

Explore the Digital Assets Explorer →

What to Watch Today

Looking ahead to Wednesday, market participants will be closely watching the release of the Federal Open Market Committee (FOMC) meeting minutes at 2:00 PM ET for insights into the central bank’s policy outlook. The economic data calendar also includes the final Wholesale Inventories report for May at 10:00 AM ET and the Consumer Credit report for May at 3:00 PM ET. Additionally, the U.S. Treasury is scheduled to auction 17-week bills, and investors will monitor after-market earnings from Levi Strauss & Co.

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.