Commodities Surge as U.S. Equities Retreat on Economic Data

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Macro Overview

U.S. equities started the week on a softer note, with the S&P 500 (IVV) declining 0.48% amid concerns over weaker-than-expected consumer data and rising Treasury yields. Developed international markets (EFA) also edged lower, while fixed income markets reflected the move in yields with the U.S. Aggregate Bond index (AGG) falling 0.24%. In a clear divergence, Emerging Markets (EEM) advanced 1.07%, and Broad Commodities (DJP) posted a strong 1.87% gain, fueled by a rally in energy prices.

U.S. Size & Style

A risk-off sentiment was evident across the U.S. style box, with nearly all segments finishing in negative territory. Value-oriented funds saw the largest declines, particularly in the small-cap space where the Small Value index (IJS) dropped 0.65%. Mid-cap growth (IJK) was the sole outlier, managing a marginal gain of 0.06% for the day. This broad-based weakness suggests investors were reducing exposure across market capitalizations.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Large Value (IVE) -0.61% 2.38% 6.32% 12.44% 19.32%
Large Cap (IVV) -0.48% 3.96% 4.83% 13.94% 21.47%
Large Growth (IVW) -0.35% 5.39% 3.58% 14.99% 23.04%
Mid Value (IJJ) -0.55% 1.80% 9.75% 15.41% 21.33%
Mid Cap (IJH) -0.24% 3.89% 8.94% 19.48% 25.15%
Mid Growth (IJK) 0.06% 5.97% 8.08% 23.21% 28.61%
Small Value (IJS) -0.65% 2.07% 11.69% 23.62% 34.32%
Small Cap (IJR) -0.41% 2.61% 12.21% 25.24% 32.64%
Small Growth (IJT) -0.17% 3.08% 12.59% 26.62% 30.75%

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U.S. Sectors & Industries

Sector performance was sharply divided, with Energy (XLE) leading the market with a 1.08% gain, driven by rising crude oil prices and heightened geopolitical risk. Technology (XLK) was the only other sector to post a gain, albeit a modest one. At the bottom of the ledger, consumer-focused sectors lagged significantly, as Communication Services (XLC) and Consumer Staples (XLP) fell 1.89% and 1.64%, respectively, following disappointing retail sales figures.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
S&P 500 (SPY) -0.47% 3.95% 4.80% 13.91% 21.41%
Energy (XLE) 1.08% 8.50% 6.03% 41.88% 50.80%
Technology (XLK) 0.16% 8.39% 8.10% 32.51% 44.00%
Industrials (XLI) -0.10% 3.85% 8.97% 20.74% 25.43%
Health Care (XLV) -0.19% 3.70% 15.63% 8.83% 24.78%
Utilities (XLU) -0.29% -2.19% 1.35% 4.87% 6.06%
Materials (XLB) -0.57% 3.38% 4.25% 16.13% 18.15%
Real Estate (XLRE) -0.97% -1.30% 4.60% 12.81% 12.18%
Financials (XLF) -1.00% 2.35% 13.07% 6.04% 11.45%
Consumer Discretionary (XLY) -1.23% 1.13% 0.39% -1.84% 2.74%
Consumer Staples (XLP) -1.64% -0.60% 0.75% 10.39% 6.12%
Communication Services (XLC) -1.89% 0.15% -4.28% -5.31% 0.66%

Explore the U.S. Sectors & Industries Explorer →

Global Thematic

Thematic performance showed a distinct split, with highly specialized technology sub-sectors leading the way. Photonics and memory-related strategies were clear winners, as the Tema Memory ETF (DISK) surged 7.11% and the Roundhill Photonics & Optics ETF (LYTE) gained 5.87%. Conversely, cybersecurity and digital payments themes faced headwinds. The Global X Cybersecurity ETF (BUG) fell 2.78%, while the Amplify Digital Payments ETF (IPAY) declined by 2.57%.

Name (Ticker) 1-Day
Leaders
Tema Memory ETF (DISK) 7.11%
Tema Photonics & Optical ETF (LAZR) 6.32%
Roundhill Photonics & Optics ETF (LYTE) 5.87%
Roundhill Memory ETF (DRAM) 5.36%
Tuttle Capital Pure Play Photonics ETF (FOTO) 3.89%
Laggards
Defiance Drone and Modern Warfare ETF (JEDI) -2.96%
WisdomTree Cybersecurity Fund (WCBR) -2.83%
Global X Cybersecurity ETF (BUG) -2.78%
iShares Cybersecurity & Tech ETF (IHAK) -2.62%
Amplify Digital Payments ETF (IPAY) -2.57%

Explore the Thematic Explorer →

Developed ex-U.S. & Emerging Markets

International markets diverged, with emerging economies outperforming their developed counterparts. Developed ex-U.S. markets (EFA) ticked down 0.17%, with modest losses in major European countries like Germany (EWG) and France (EWQ). In contrast, the Emerging Markets index (EEM) climbed 1.07%, powered by a notable 2.98% rally in South Korea (EWY) and a 0.79% gain in China (MCHI) despite reports of weak domestic data.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Developed Markets ex-U.S.
Developed ex-U.S. (EFA) -0.17% 4.96% 8.29% 14.71% 21.66%
Australia (EWA) -0.34% 2.78% 4.35% 14.43% 13.62%
Canada (EWC) -0.08% 4.59% 8.76% 15.84% 33.34%
France (EWQ) -0.70% 4.43% 9.29% 7.27% 10.52%
Germany (EWG) -0.45% 6.80% 8.37% 5.49% 5.29%
Hong Kong (EWH) 0.45% 2.04% -5.03% 7.53% 11.33%
Japan (EWJ) -0.04% 8.49% 8.37% 22.24% 27.80%
Netherlands (EWN) -0.15% 6.92% 12.01% 26.58% 41.00%
South Korea (EWY) 2.98% 13.88% 3.49% 90.39% 157.95%
Switzerland (EWL) -0.55% -0.41% 4.75% 6.79% 17.49%
U.K. (EWU) -0.21% 2.60% 7.21% 11.08% 20.67%
Emerging Markets
Emerging Markets (EEM) 1.07% 6.37% 3.98% 23.67% 37.43%
Brazil (EWZ) 0.12% -3.58% -5.34% 7.95% 25.98%
China (MCHI) 0.79% 3.98% -2.15% -7.74% -5.99%
India (INDA) -0.40% 1.37% 3.31% -8.27% -5.94%
Indonesia (EIDO) 0.00% 1.45% -9.29% -31.41% -30.00%
Malaysia (EWM) 0.39% -0.25% -3.40% 4.86% 16.67%
Mexico (EWW) -0.13% -0.27% -1.56% 9.63% 26.32%
South Africa (EZA) 0.98% 9.35% 3.38% 1.21% 27.49%
Taiwan (EWT) 0.68% 10.76% 18.10% 69.68% 86.64%
Thailand (THD) 1.46% 1.39% 6.36% 26.71% 32.84%

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

Fixed Income

Fixed income markets broadly declined as Treasury yields rose on the day. The U.S. Aggregate Bond index (AGG) fell by 0.24%, reflecting widespread losses across investment-grade debt. Duration sensitivity was a key factor, as long-term bond funds like the Long-Term Corporate Bond ETF (BLV) and Long-Term Treasury ETF (SPTL) posted steeper losses of 0.68% and 0.64%, respectively. Floating-rate instruments such as Bank Loans (BKLN) were a rare bright spot, managing a small gain.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Multisector
Short-Term (BSV) -0.03% 0.24% 0.79% 0.81% 2.74%
Core Enhanced (IUSB) -0.20% -0.51% 0.38% -0.05% 2.62%
Core (AGG) -0.24% -0.62% 0.23% -0.34% 2.27%
Long-Term (BLV) -0.68% -2.68% -1.46% -3.20% -0.43%
Government
Ultrashort (BIL) 0.02% 0.30% 0.91% 2.24% 3.75%
Short-Term (SPTS) 0.00% 0.32% 0.85% 1.14% 3.02%
Intermediate (SPTI) -0.07% -0.20% 0.56% -0.36% 1.82%
Inflation Protected (TIP) -0.21% -0.66% -0.67% 0.46% 1.84%
Long-Term (SPTL) -0.64% -2.83% -1.07% -3.57% -0.56%
Specialty
Bank Loans (BKLN) 0.05% 1.02% 1.38% 1.59% 4.75%
Convertible (CWB) -0.09% 5.15% 2.35% 20.49% 26.78%
Corporate (SPIB) -0.12% -0.16% 0.50% 0.44% 2.88%
High Yield (HYG) -0.13% 0.43% 1.66% 2.19% 4.89%
Mortgage Backed (MBB) -0.16% -0.41% 0.52% 0.17% 3.76%
Preferred Stock (PFF) -0.68% 1.39% -0.57% 1.89% 2.88%
International & EM
International Local (IGOV) 0.05% 1.10% 0.51% -1.06% -1.05%
Emerging Local (EMLC) -0.04% 1.58% 3.33% 2.94% 7.66%
International USD (BNDX) -0.15% -0.34% 0.89% 0.22% 1.40%
Emerging USD (EMB) -0.37% -0.44% 1.27% 1.39% 6.18%
Municipals
Short-Term (SUB) -0.06% 0.22% 0.72% 1.04% 1.94%
Intermediate (MUB) -0.28% -0.69% 0.27% 0.41% 4.74%
High Yield (HYD) -0.36% -1.13% 0.60% 0.91% 6.69%
Long-Term (MLN) -0.46% -0.96% 0.95% 1.42% 7.63%

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

Commodities

Commodities delivered a strong performance, with the broad index (DJP) climbing 1.87%. The energy complex was the primary catalyst, as WTI Crude oil (USO) jumped 2.91% amid rising geopolitical tensions. Precious metals also found favor, with Gold (GLD) advancing 1.00% and Silver (SLV) rallying 1.86%, suggesting a flight to hard assets.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Broad Commodities (DJP) 1.87% 5.23% -1.86% 31.67% 47.51%
Agriculture
Soybeans (SOYB) 1.69% 1.22% 4.45% 18.02% 16.32%
Sugar (CANE) 1.58% 12.22% 9.52% 12.05% -1.03%
Broad (DBA) 1.33% 1.08% 1.11% 10.27% 7.72%
Corn (CORN) 1.10% 3.82% 1.76% 4.12% 8.01%
Wheat (WEAT) 0.12% -0.99% 3.69% 25.19% 18.48%
Energy
Broad (DBE) 2.93% 6.70% -3.20% 85.11% 80.95%
WTI Crude (USO) 2.91% 5.11% -12.10% 88.39% 78.97%
Brent Crude (BNO) 2.63% 6.71% -9.92% 83.51% 76.47%
Natural Gas (UNG) -0.91% -6.47% -13.24% -19.82% -23.38%
Industrial Metals
Copper (CPER) 0.30% 5.83% 5.22% 14.79% 43.73%
Broad (DBB) 0.08% 3.71% 0.04% 10.90% 33.86%
Precious Metals
Silver (SLV) 1.86% 17.31% -13.72% -7.53% 72.67%
Platinum (PPLT) 1.26% 10.83% -10.24% -13.80% 31.36%
Broad (DBP) 1.14% 11.39% -5.62% -0.79% 36.87%
Palladium (PALL) 1.09% 6.56% -6.07% -16.80% 18.66%
Gold (GLD) 1.00% 10.06% -2.83% 2.32% 31.90%

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Cryptocurrency

Cryptocurrency markets posted broad gains, moving counter to the negative sentiment in U.S. equities. Bitcoin (IBIT) led the advance among major digital assets, rising 2.22% on the session. Ethereum (ETHA) also recorded a solid 1.55% increase. The positive performance across the asset class indicated renewed buying interest after a period of consolidation.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
XRP (XRP) 0.09% -8.44% -30.49% -45.57%
Solana (SOLZ) 1.14% 0.66% -15.37% -39.74% -61.41%
Ethereum (ETHA) 1.55% 3.52% -14.08% -35.80% -56.56%
Multi-Coin (NCIQ) 1.65% 0.06% -19.06% -29.75% -49.89%
Bitcoin (IBIT) 2.22% 0.19% -18.74% -26.65% -45.18%

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What to Watch Today

Looking ahead to Tuesday, investors will be closely monitoring a slate of U.S. economic data for further clues on the economy’s trajectory. Key releases include Housing Starts and Permits at 8:30 AM ET, followed by the Industrial Production and Capacity Utilization report at 9:15 AM ET. On the earnings front, major retailers will be in focus, with The Home Depot (HD) and Baidu (BIDU) scheduled to report before the market opens.

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.