Tech Weakness and Geopolitical Tensions Drive Broad Market Sell-Off

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Macro Overview

Global equity markets retreated as escalating geopolitical tensions and disappointing news from the technology sector weighed on investor sentiment. The S&P 500 (IVV) fell 1.24% in its largest single-day loss in a month, with similar declines seen in Developed ex-U.S. (EFA) markets, which dropped 1.29%. In contrast, Broad Commodities (DJP) served as a notable outlier, gaining 0.70% as crude oil prices surged on supply concerns. Fixed income markets also weakened, with the U.S. Aggregate Bond (AGG) losing 0.25% as rising oil fueled inflation fears and pushed Treasury yields higher.

U.S. Size & Style

Large-cap growth stocks led the U.S. market lower, reflecting weakness among technology bellwethers. The Large Growth (IVW) index fell 1.75%, a much steeper decline than the 0.62% drop for its Large Value (IVE) counterpart. This divergence was driven by poor earnings reports and guidance from major tech components. Interestingly, Mid Growth (IJK) bucked the trend with a slight 0.12% gain, while small-caps generally outperformed large-caps on a relative basis.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Large Value (IVE) -0.62% 1.37% 4.23% 8.95% 16.46%
Large Cap (IVV) -1.24% 0.61% 4.47% 8.85% 17.75%
Large Growth (IVW) -1.75% -0.09% 4.64% 8.57% 18.63%
Mid Value (IJJ) -0.70% 1.60% 4.13% 12.28% 15.83%
Mid Cap (IJH) -0.32% 0.20% 4.13% 14.87% 18.69%
Mid Growth (IJK) 0.12% -1.11% 4.12% 17.17% 21.33%
Small Value (IJS) -0.99% 2.21% 6.39% 19.96% 30.80%
Small Cap (IJR) -0.62% 1.48% 7.19% 21.11% 28.58%
Small Growth (IJT) -0.25% 0.66% 7.91% 22.02% 26.30%

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U.S. Sectors & Industries

Sector performance diverged sharply, with defensive and industrial names outperforming while technology-related groups sold off. The Consumer Discretionary (XLY) sector plunged 4.61%, driven by a nearly 14% drop in Tesla shares, bringing its RSI to 30. Communication Services (XLC) followed with a 3.50% loss after disappointing news from Alphabet. In contrast, the Industrials (XLI) sector was the day’s leader, rising 1.73% on strong earnings from defense contractors, while Energy (XLE) advanced 0.30% and is now considered overbought with an RSI of 70.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
S&P 500 (SPY) -1.23% 0.63% 4.46% 8.83% 17.68%
Industrials (XLI) 1.73% 2.13% 4.78% 17.90% 19.86%
Health Care (XLV) 1.26% 6.08% 10.88% 5.18% 20.53%
Utilities (XLU) 0.57% 2.49% 0.85% 9.64% 12.47%
Energy (XLE) 0.30% 9.03% 4.95% 34.62% 41.03%
Real Estate (XLRE) -0.13% 0.69% 3.14% 13.11% 8.49%
Financials (XLF) -0.39% 3.62% 8.16% 2.81% 6.76%
Technology (XLK) -1.01% -3.12% 14.64% 24.25% 37.83%
Materials (XLB) -1.04% -1.14% -2.57% 11.80% 11.01%
Consumer Staples (XLP) -1.39% -0.61% 0.37% 8.47% 4.75%
Communication Services (XLC) -3.50% -1.76% -9.99% -9.96% -1.61%
Consumer Discretionary (XLY) -4.61% -4.40% -7.44% -8.56% -3.24%

Explore the U.S. Sectors & Industries Explorer →

Global Thematic

Thematic performance clearly reflected the day’s geopolitical and sector-specific catalysts. Defense-related funds were the top performers, with the Global X Defense Tech ETF (SHLD) gaining 3.33% amid heightened global conflict. Conversely, thematic funds focused on mega-cap technology suffered significant losses, as seen in the 4.63% decline of the Roundhill Magnificent Seven ETF (MAGS). Silver miner ETFs also populated the laggards list, with the Sprott Silver Miners & Physical Silver ETF Silver Miners ETF (SLVR) falling 4.19% as precious metal prices dropped.

Name (Ticker) 1-Day
Leaders
Global X Defense Tech ETF (SHLD) 3.33%
CoinShares Bitcoin Mining ETF (WGMI) 1.94%
State Street SPDR S&P Kensho Final Frontiers ETF (ROKT) 1.86%
Defiance Drone and Modern Warfare ETF (JEDI) 1.66%
Global X U.S. Infrastructure Development ETF (PAVE) 1.61%
Laggards
Roundhill Magnificent Seven ETF (MAGS) -4.63%
Sprott Silver Miners & Physical Silver ETF Silver Miners ETF (SLVR) -4.19%
Amplify Junior Silver Miners ETF (SILJ) -3.80%
First Trust SkyBridge Crypto Industry & Digital Economy ETF (CRPT) -3.72%
iShares MSCI Global Silver Miners ETF (SLVP) -3.48%

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Developed ex-U.S. & Emerging Markets

International markets broadly followed the U.S. lower, though a few countries bucked the negative trend. In developed markets, major European economies like Germany (EWG) and France (EWQ) fell 1.74% and 1.82%, respectively, while South Korea (EWY) stood out with a 2.01% gain. Emerging markets saw widespread losses, led by a steep 4.05% drop in South Africa (EZA) and a 2.23% decline in Mexico (EWW).

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Developed Markets ex-U.S.
Developed ex-U.S. (EFA) -1.29% 0.43% 3.24% 8.84% 16.26%
Australia (EWA) -1.28% 1.68% -1.29% 10.32% 9.58%
Canada (EWC) -0.78% 1.99% 2.17% 9.58% 26.40%
France (EWQ) -1.82% -0.13% 1.22% 1.69% 3.57%
Germany (EWG) -1.74% -0.95% -1.25% -2.60% -4.20%
Hong Kong (EWH) -0.44% 6.25% -1.98% 7.29% 13.11%
Japan (EWJ) -1.18% -1.78% 5.19% 13.43% 24.27%
Netherlands (EWN) -1.58% -1.19% 8.78% 18.79% 29.66%
South Korea (EWY) 2.01% -9.54% 15.45% 78.83% 140.78%
Switzerland (EWL) -0.80% 0.63% 2.95% 5.01% 12.04%
U.K. (EWU) -1.14% 2.48% 1.23% 7.72% 18.07%
Emerging Markets
Emerging Markets (EEM) -0.60% -3.83% 4.13% 18.67% 31.91%
Brazil (EWZ) -1.23% 5.92% -8.92% 14.94% 37.65%
China (MCHI) -0.41% 2.97% -6.23% -10.60% -8.25%
India (INDA) -1.22% -2.93% -3.60% -11.88% -12.97%
Indonesia (EIDO) -2.13% 1.64% -19.81% -32.50% -28.44%
Malaysia (EWM) -0.25% 3.85% -2.83% 3.74% 19.10%
Mexico (EWW) -2.23% 0.36% -1.95% 9.76% 28.29%
South Africa (EZA) -4.05% -5.47% -10.88% -10.31% 15.69%
Taiwan (EWT) -1.81% -5.13% 18.52% 57.15% 74.65%
Thailand (THD) -0.67% 4.52% 8.17% 24.19% 31.61%

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Fixed Income

Bonds sold off across the board as rising oil prices stoked inflation concerns, pushing Treasury yields to their highest levels since early 2025. The core U.S. Aggregate Bond (AGG) index declined 0.25%, with longer-duration instruments seeing greater price pressure. Riskier segments of the bond market also retreated amid the risk-off mood, as evidenced by the 0.36% loss in the High Yield (HYG) corporate bond fund. The strengthening U.S. dollar also contributed to losses in international local currency debt.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Multisector
Short-Term (BSV) -0.09% -0.13% -0.25% 0.19% 2.72%
Core Enhanced (IUSB) -0.22% -1.02% -0.94% -0.35% 3.19%
Core (AGG) -0.25% -1.06% -1.13% -0.59% 2.97%
Long-Term (BLV) -0.40% -3.16% -2.66% -2.19% 1.87%
Government
Ultrashort (BIL) 0.00% 0.29% 0.87% 1.97% 3.77%
Short-Term (SPTS) -0.07% 0.03% 0.01% 0.51% 2.85%
Intermediate (SPTI) -0.21% -0.60% -1.18% -0.97% 1.98%
Inflation Protected (TIP) -0.26% -0.33% -1.09% 0.41% 2.39%
Long-Term (SPTL) -0.35% -2.84% -2.64% -2.39% 1.48%
Specialty
Bank Loans (BKLN) -0.05% 0.68% 0.79% 0.55% 3.73%
Corporate (SPIB) -0.24% -0.61% -0.59% -0.06% 3.17%
Mortgage Backed (MBB) -0.29% -1.19% -1.27% -0.38% 4.25%
High Yield (HYG) -0.36% -0.34% 0.07% 1.21% 4.31%
Convertible (CWB) -0.80% -4.60% 2.59% 16.48% 22.75%
Preferred Stock (PFF) -1.02% -1.62% -2.99% -0.21% 2.23%
International & EM
International USD (BNDX) -0.19% -1.16% -0.09% 0.10% 1.33%
International Local (IGOV) -0.49% -1.37% -3.12% -3.14% -4.16%
Emerging USD (EMB) -0.59% -1.39% -0.20% 0.76% 7.61%
Emerging Local (EMLC) -0.79% -0.46% -0.44% 0.50% 5.59%
Municipals
Short-Term (SUB) -0.35% -0.42% -0.23% 0.37% 1.82%
Intermediate (MUB) -0.59% -1.60% -1.14% -0.15% 4.96%
Long-Term (MLN) -0.74% -1.71% -1.25% 0.77% 8.67%
High Yield (HYD) -0.92% -1.75% -0.84% 0.39% 7.11%

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

Commodities

The commodities complex was a tale of two markets, with energy surging while precious metals tumbled. Escalating conflict in the Middle East propelled crude oil prices higher, with WTI Crude (USO) jumping 5.93% and Brent Crude (BNO) adding 3.95%. Conversely, a stronger U.S. dollar and rising bond yields weighed heavily on precious metals. Gold (GLD) fell 2.00%, while Silver (SLV) experienced a more pronounced drop of 3.45%.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Broad Commodities (DJP) 0.70% 10.73% 0.14% 29.75% 39.55%
Agriculture
Corn (CORN) 0.16% 9.38% 0.16% 3.27% 4.81%
Broad (DBA) 0.04% 6.17% 3.07% 10.66% 11.65%
Soybeans (SOYB) -0.08% 7.50% 6.75% 19.35% 19.46%
Sugar (CANE) -0.62% 4.55% 3.43% -0.97% -11.20%
Wheat (WEAT) -1.42% 14.32% 9.48% 28.34% 14.68%
Energy
WTI Crude (USO) 5.93% 25.37% 3.54% 101.69% 85.30%
Brent Crude (BNO) 3.95% 25.65% 1.42% 88.74% 76.87%
Broad (DBE) 3.77% 21.94% 6.22% 87.75% 76.18%
Natural Gas (UNG) 0.09% -7.74% 0.86% -13.46% -22.61%
Industrial Metals
Broad (DBB) -0.92% 0.94% -1.87% 7.67% 28.06%
Copper (CPER) -2.57% 2.47% 3.46% 9.38% 5.93%
Precious Metals
Gold (GLD) -2.00% -1.54% -13.81% -6.26% 19.01%
Broad (DBP) -2.26% -2.77% -16.24% -9.92% 21.48%
Platinum (PPLT) -2.82% -3.34% -20.67% -22.44% 12.26%
Palladium (PALL) -3.15% 1.97% -14.24% -21.65% -2.67%
Silver (SLV) -3.45% -6.59% -23.87% -19.19% 45.87%

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Cryptocurrency

Digital assets declined in line with the broader risk-off sentiment that permeated traditional financial markets. The price of Bitcoin (IBIT) fell 1.85%, pulling the wider crypto complex lower. Other major tokens posted larger declines, with Ethereum (ETHA) down 2.82% and XRP (XRP) losing 2.91%. The move highlights the asset class’s continued correlation with risk assets during periods of market stress.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
XRP (XRP) -2.91% 0.16% -22.97% -39.86%
Ethereum (ETHA) -2.82% 12.70% -19.33% -37.09% -48.07%
Solana (SOLZ) -2.66% 10.06% -11.45% -39.84% -63.41%
Bitcoin (IBIT) -1.85% 3.79% -16.80% -26.18% -45.53%
Multi-Coin (NCIQ) -1.81% 4.94% -17.19% -29.00% -48.22%

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What to Watch Today

Looking ahead to Friday, market participants will be closely watching the release of key economic data for further clues on the health of the U.S. economy. The agenda includes the S&P Global Flash Manufacturing and Services PMI readings for July, which provide a timely snapshot of business activity. Additionally, the New Home Sales report for June will offer insights into the housing market. On the earnings front, several major companies are scheduled to report before the market opens, including American Express, Verizon, and NextEra Energy.

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.