International Equities Outperform as U.S. Markets Tread Water

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Macro Overview

U.S. equities finished a quiet session with modest gains as investors assessed the latest PCE inflation data, with the S&P 500 (IVV) adding 0.32%. In contrast, international markets showed more decisive strength, as Developed ex-U.S. equities (EFA) rose 0.72%. The standout performers were Emerging Markets (EEM), which surged 1.72% on the day. This risk-on sentiment in global stocks diverged from the commodities complex (DJP), which fell 0.97% due to weakness in energy.

U.S. Size & Style

A clear preference for large-cap growth stocks emerged in the U.S. market, with the Large Growth index (IVW) advancing 0.67% while its value counterpart (IVE) declined 0.13%. Performance was muted across smaller companies, as both mid-cap (IJH) and small-cap (IJR) benchmarks finished nearly unchanged. Momentum indicators remained neutral across all size and style factors, with RSI readings clustered between 45 and 60.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Large Value (IVE) -0.13% 2.63% 4.54% 12.82% 19.23%
Large Cap (IVV) 0.32% 3.67% 3.00% 12.96% 20.62%
Large Growth (IVW) 0.67% 4.49% 1.69% 12.81% 21.44%
Mid Value (IJJ) -0.36% -0.32% 5.18% 13.03% 15.78%
Mid Cap (IJH) -0.08% 0.49% 3.85% 15.92% 19.20%
Mid Growth (IJK) 0.16% 1.16% 2.50% 18.43% 22.21%
Small Value (IJS) -0.06% 1.41% 6.88% 21.87% 28.46%
Small Cap (IJR) -0.05% 1.27% 7.09% 22.63% 26.61%
Small Growth (IJT) -0.06% 1.03% 7.13% 23.08% 24.60%

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U.S. Sectors & Industries

The Technology sector (XLK) led all groups with a 0.94% gain, supported by positive earnings from several tech firms and anticipation for Nvidia’s after-hours report. At the opposite end of the spectrum, Energy (XLE) was the session’s biggest laggard, falling 1.66% as crude oil prices retreated. The drop in oil was attributed to reports of diplomatic discussions aimed at securing passage through the Strait of Hormuz. Consumer Staples (XLP) also showed notable weakness, declining 1.06%.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
S&P 500 (SPY) 0.32% 3.65% 2.98% 12.91% 20.53%
Technology (XLK) 0.94% 3.33% 0.87% 26.54% 39.54%
Communication Services (XLC) 0.77% 6.47% -1.71% -3.30% 2.79%
Health Care (XLV) 0.34% 7.82% 17.46% 14.20% 30.94%
Utilities (XLU) 0.21% -6.44% -3.89% 2.80% 4.64%
Financials (XLF) 0.15% 3.55% 12.66% 7.38% 11.17%
Real Estate (XLRE) 0.07% -1.28% 2.68% 14.15% 11.35%
Materials (XLB) 0.00% 4.53% 6.94% 19.11% 19.01%
Consumer Discretionary (XLY) -0.30% 7.81% -0.83% -0.83% 2.19%
Industrials (XLI) -0.34% -2.33% 4.11% 15.61% 19.17%
Consumer Staples (XLP) -1.06% 2.84% 2.74% 12.79% 9.71%
Energy (XLE) -1.66% 4.09% 5.06% 40.70% 44.80%

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Global Thematic

Thematic performance was marked by sharp divergences, particularly within different technology sub-sectors. Digital asset and uranium-focused strategies dominated the leaderboard, as the Global X Blockchain ETF (BKCH) and the Global X Uranium ETF (URA) both rallied more than 5.3%. Conversely, cybersecurity funds faced a difficult session, with the WisdomTree Cybersecurity Fund (WCBR) falling 1.87% and leading a cohort of similar ETFs lower.

Name (Ticker) 1-Day
Leaders
Global X Blockchain ETF (BKCH) 5.48%
Global X Uranium ETF (URA) 5.36%
Roundhill Neocloud ETF (NCLD) 5.05%
Sprott Junior Uranium Miners ETF (URNJ) 4.84%
CoinShares Bitcoin Mining and Digital Power ETF (WGMI) 4.76%
Laggards
WisdomTree Cybersecurity Fund (WCBR) -1.87%
Global X Cybersecurity ETF (BUG) -1.68%
iShares Cybersecurity & Tech ETF (IHAK) -1.60%
WisdomTree Cloud Computing Fund (WCLD) -1.36%
Amplify Cybersecurity ETF (HACK) -1.35%

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Developed ex-U.S. & Emerging Markets

International equities broadly outpaced their U.S. counterparts, led by a particularly strong showing from emerging markets. South Korea (EWY) was a significant outlier, posting a remarkable 3.75% gain. The broader Emerging Markets index (EEM) climbed 1.72%, bolstered by strong returns from Brazil (EWZ) and Taiwan (EWT). Developed markets ex-U.S. (EFA) also delivered a solid 0.72% advance.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Developed Markets ex-U.S.
Developed ex-U.S. (EFA) 0.72% 5.22% 6.29% 15.09% 22.32%
Australia (EWA) 1.23% 5.95% 7.23% 17.83% 17.00%
Canada (EWC) 0.84% 6.04% 7.56% 16.69% 33.54%
France (EWQ) -0.06% 4.36% 6.32% 6.75% 12.36%
Germany (EWG) 0.73% 8.10% 5.65% 6.67% 7.63%
Hong Kong (EWH) -0.17% 2.88% 0.35% 10.92% 13.14%
Japan (EWJ) 0.83% 4.85% 4.94% 19.07% 26.22%
Netherlands (EWN) 0.30% 4.44% 4.88% 22.92% 35.19%
South Korea (EWY) 3.75% 10.55% -1.03% 85.30% 153.33%
Switzerland (EWL) 0.73% 4.20% 5.11% 9.81% 19.78%
U.K. (EWU) 0.59% 4.57% 6.40% 13.92% 22.22%
Emerging Markets
Emerging Markets (EEM) 1.72% 6.19% 2.59% 23.54% 36.20%
Brazil (EWZ) 2.02% 0.42% -0.41% 14.01% 30.56%
China (MCHI) 0.35% 3.36% -0.10% -7.64% -8.73%
India (INDA) 1.78% 4.60% 3.80% -7.07% -5.64%
Indonesia (EIDO) 1.11% 4.32% -0.54% -30.38% -29.36%
Malaysia (EWM) 0.52% 4.05% 0.35% 7.25% 16.89%
Mexico (EWW) 0.91% 3.18% 1.58% 13.93% 30.49%
South Africa (EZA) 1.65% 18.73% 10.01% 7.62% 33.87%
Taiwan (EWT) 2.00% 7.54% 8.84% 65.91% 86.06%
Thailand (THD) -0.33% 0.55% 3.24% 25.60% 30.36%

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Fixed Income

The bond market registered broad-based gains during the session, with the U.S. Aggregate Bond index (AGG) rising 0.47%. Longer-duration bond funds were among the top performers, evidenced by the 0.98% advance for the Long-Term Bond index (BLV). Credit-sensitive assets also participated in the rally, as High Yield (HYG) added 0.28% and Convertibles (CWB) gained 0.99%.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Multisector
Long-Term (BLV) 0.98% 1.02% -0.36% -1.14% 1.32%
Core (AGG) 0.47% 0.91% 0.58% 0.44% 2.75%
Core Enhanced (IUSB) 0.46% 0.96% 0.71% 0.68% 3.06%
Short-Term (BSV) 0.15% 0.68% 0.86% 0.96% 2.71%
Government
Long-Term (SPTL) 0.95% 0.81% 0.13% -1.40% 1.10%
Intermediate (SPTI) 0.39% 0.87% 0.77% 0.03% 1.89%
Inflation Protected (TIP) 0.36% 0.87% 0.35% 1.28% 2.05%
Short-Term (SPTS) 0.10% 0.63% 0.95% 1.25% 2.95%
Ultrashort (BIL) 0.01% 0.31% 0.92% 2.32% 3.74%
Specialty
Convertible (CWB) 0.99% 2.38% -1.44% 17.30% 22.89%
Preferred Stock (PFF) 0.56% 2.20% -0.44% 2.05% 2.36%
Mortgage Backed (MBB) 0.49% 1.08% 0.75% 0.94% 4.25%
Corporate (SPIB) 0.30% 0.78% 0.75% 0.84% 3.04%
High Yield (HYG) 0.28% 1.36% 1.48% 2.59% 5.00%
Bank Loans (BKLN) 0.05% 1.15% 1.79% 1.81% 4.70%
International & EM
International Local (IGOV) 0.60% 3.17% 0.70% 0.14% 0.69%
Emerging USD (EMB) 0.56% 1.22% 1.51% 2.11% 6.95%
International USD (BNDX) 0.48% 0.48% 0.40% 0.77% 1.87%
Emerging Local (EMLC) 0.35% 3.30% 3.92% 4.06% 9.10%
Municipals
High Yield (HYD) 0.26% 0.61% 0.42% 1.19% 6.90%
Intermediate (MUB) 0.16% 0.30% 0.24% 0.43% 4.57%
Long-Term (MLN) 0.09% 0.26% 1.24% 1.36% 7.35%
Short-Term (SUB) 0.02% 0.65% 0.77% 1.18% 2.01%

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Commodities

The commodities complex was pulled lower by a sharp decline in energy prices, which overshadowed gains elsewhere. WTI Crude (USO) plunged 4.58% following reports of diplomatic talks that could lower geopolitical risk in the Strait of Hormuz. In contrast, other segments advanced, including Corn (CORN), which rose 1.93%, and Copper (CPER), which gained 1.72%. Precious metals were mostly positive, with Gold (GLD) ticking up 0.32%.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Broad Commodities (DJP) -0.97% 2.72% 0.63% 32.44% 46.33%
Agriculture
Corn (CORN) 1.93% 7.05% 6.70% 10.49% 12.91%
Soybeans (SOYB) 1.31% 0.00% 4.87% 20.22% 17.85%
Wheat (WEAT) 0.59% 1.63% 4.40% 28.34% 20.90%
Broad (DBA) -0.07% 0.14% 2.61% 10.82% 6.22%
Sugar (CANE) -1.24% 14.48% 12.22% 13.89% 1.05%
Energy
Natural Gas (UNG) 0.79% -3.03% -6.49% -16.56% -14.39%
Broad (DBE) -3.54% -2.36% -2.02% 80.07% 70.76%
WTI Crude (USO) -4.58% -7.71% -10.48% 82.40% 66.53%
Brent Crude (BNO) -4.77% -4.41% -8.62% 77.47% 63.98%
Industrial Metals
Copper (CPER) 1.72% 6.28% 4.73% 16.59% 46.30%
Broad (DBB) 0.78% 4.17% -0.69% 12.12% 34.44%
Precious Metals
Gold (GLD) 0.32% 15.10% 3.44% 8.01% 38.16%
Broad (DBP) 0.19% 15.70% 0.42% 4.53% 42.74%
Silver (SLV) 0.19% 18.50% -8.84% -3.26% 77.96%
Platinum (PPLT) -0.82% 16.84% -3.49% -9.56% 37.91%
Palladium (PALL) -1.26% 7.80% -0.82% -16.36% 21.33%

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Cryptocurrency

Digital asset markets were mostly quiet, with prices for major cryptocurrencies showing little change in a day of consolidation. Bitcoin (IBIT) edged up 0.18%, while Ethereum (ETHA) slipped 0.32%. Among the larger assets, Solana (SOLZ) was a modest outperformer, gaining 1.35%. This subdued activity comes after a month of strong double-digit percentage returns across the asset class.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
XRP (XRP) -0.78% 35.44% 10.09% -19.74%
Ethereum (ETHA) -0.32% 32.48% 19.46% -17.08% -44.39%
Multi-Coin (NCIQ) 0.10% 24.62% 6.23% -12.28% -34.62%
Bitcoin (IBIT) 0.18% 23.03% 4.10% -9.93% -28.88%
Solana (SOLZ) 1.35% 32.71% 15.70% -22.09% -51.88%

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What to Watch Today

Looking ahead to Thursday, market participants will focus on the start of the Federal Reserve’s annual Jackson Hole Economic Policy Symposium, which will feature remarks from Fed Chair Kevin Warsh. The economic calendar includes weekly Initial Jobless Claims and the Advance International Trade in Goods report. The earnings season continues with reports due from retailers Best Buy (BBY) and Dollar General (DG) before the bell, followed by tech firms Marvell Technology (MRVL) and Autodesk (ADSK) after the close.

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.