Nvidia Delivers: Tech Leads Rebound as AI Giant Beats Estimates

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Macro Overview

Equity markets snapped a four-day losing streak on Wednesday, with the S&P 500 (IVV) climbing +0.38% as investors positioned themselves ahead of Nvidia’s highly anticipated earnings report. The tech sector led the rebound, shaking off recent jitters, while energy stocks lagged significantly as oil prices retreated. Following the closing bell, Nvidia delivered a beat on both top and bottom lines and issued strong revenue guidance, likely setting a positive tone for today’s session. While major indices finished in the green, defensive positioning remained evident in parts of the market, with Treasuries seeing little movement.

U.S. Size & Style

Growth asserted dominance over Value across the market cap spectrum on Wednesday. Large Growth (IVW) was the standout performer, gaining +0.97%, significantly outpacing Large Value (IVE), which fell -0.34%. This divergence highlights the market’s renewed appetite for tech exposure ahead of key earnings. Small caps remained under pressure, with Small Cap (IJR) dipping -0.11%, though growth styles within the small and mid-cap space fared better than their value counterparts.

Name (Ticker) 1 Day WTD 1 Month 3 Month YTD 1 Year
Large Growth (IVW) +0.97% -0.99% -0.47% +5.14% +18.44% +20.83%
Large Cap (IVV) +0.38% -1.39% -0.26% +3.89% +14.18% +13.71%
Mid Growth (IJK) +0.31% -1.33% -1.53% -0.12% +2.97% +0.01%
Mid Cap (IJH) +0.14% -1.40% -1.81% -0.48% +2.52% -0.27%
Small Growth (IJT) +0.05% -2.08% -4.09% -1.84% +0.11% -5.04%
Mid Value (IJJ) -0.10% -1.56% -2.08% -0.97% +1.70% -0.81%
Small Cap (IJR) -0.11% -2.37% -2.98% -0.21% +0.05% -3.72%
Small Value (IJS) -0.25% -2.78% -1.90% +1.32% -0.12% -2.68%
Large Value (IVE) -0.34% -1.81% -0.10% +2.39% +9.17% +5.00%

U.S. Sectors & Industries

Sector performance was notably bifurcated, with Technology (XLK) rising +0.70% to lead the pack, supported by strength in semiconductors where Semiconductor (XSD) gained +1.06%. Financials also showed robust momentum, with Regional Banking (KRE) advancing +1.06%. On the flip side, Energy (XLE) was the clear laggard, dropping -1.30% amidst lower crude prices. Defensive sectors like Utilities and Staples also underperformed, reflecting the risk-on rotation.

Sector (Ticker) 1 Day WTD 1 Month 3 Month YTD 1 Year
Technology (XLK) +0.70% -2.49% -1.42% +7.53% +21.40% +22.22%
Financial (XLF) +0.37% -1.70% -1.19% -1.65% +7.78% +5.28%
Industrials (XLI) +0.33% -1.09% -0.91% -0.26% +15.27% +9.97%
Materials (XLB) +0.26% -1.19% -2.44% -4.33% +3.38% -4.63%
Consumer Discretionary (XLY) 0.00% -2.76% -4.23% -2.15% +0.72% +5.02%
Health Care (XLV) -0.17% +0.33% +6.32% +11.89% +12.19% +9.79%
Communication Services (XLC) -0.55% -0.13% -3.26% +1.27% +15.87% +16.28%
Consumer Staples (XLP) -0.77% -0.97% -4.04% -6.90% -0.81% -2.56%
Real Estate (XLRE) -0.78% -1.07% -3.64% -2.04% +1.90% -3.80%
Utilities (XLU) -0.84% -0.33% -3.39% +3.46% +19.31% +13.18%
Energy (XLE) -1.30% -2.33% +4.54% +6.54% +7.53% -2.62%

Global Thematic

In the thematic space, clean energy metals and nuclear power shone brightly, while cannabis and blockchain related themes struggled. Uranium & Nuclear Energy (URA) surged +3.22%, highlighting continued interest in alternative energy sources. Conversely, Cannabis & Vice (CNBS) fell -4.35%, and crypto-linked equities remained under pressure alongside digital assets.

Developed Markets ex-U.S.

International developed markets faced selling pressure, diverging sharply from the U.S. recovery. South Korea (EWY) led declines, falling -1.12%, while France (EWQ) dropped -0.44%. Japan (EWJ) and Hong Kong (EWH) saw more modest weakness, dipping -0.12% and -0.86% respectively.

Country (Ticker) 1 Day WTD 1 Month 3 Month YTD 1 Year
Netherlands (EWN) +0.74% -1.86% -2.73% +7.21% +29.94% +30.19%
Canada (EWC) +0.18% -0.53% +0.68% +7.70% +26.45% +22.14%
Germany (EWG) -0.05% -3.30% -4.52% -6.79% +26.22% +27.54%
Dev ex-U.S. (EFA) -0.30% -2.88% -2.11% +0.46% +24.48% +23.18%
Australia (EWA) -0.39% -2.50% -6.02% -4.92% +7.65% -0.09%
Switzerland (EWL) -0.39% -2.07% -1.09% -2.43% +24.96% +21.68%
South Korea (EWY) -1.12% -3.79% +2.30% +26.76% +77.95% +61.23%
France (EWQ) -0.44% -3.12% -3.96% -0.87% +23.81% +23.43%
Hong Kong (EWH) -0.86% -3.86% +3.30% +3.79% +34.20% +32.74%
Japan (EWJ) -0.12% -3.93% -1.61% +0.82% +21.21% +21.88%

Emerging Markets

Emerging markets offered a mixed bag, outperforming their developed counterparts on a relative basis. Indonesia (EIDO) led gains, rising +1.20%, while China (MCHI) lagged with a decline of -0.82%. Emerging (EEM) as a whole finished down -0.35%, held back by weakness in larger Asian constituents.

Country (Ticker) 1 Day WTD 1 Month 3 Month YTD 1 Year
Indonesia (EIDO) +1.20% +0.54% +6.82% +0.93% +2.69% -4.15%
Malaysia (EWM) +0.65% -0.45% +2.45% +4.57% +9.62% +12.18%
South Africa (EZA) +0.62% -0.63% +1.77% +17.47% +60.71% +49.59%
India (INDA) +0.40% +0.38% +0.70% +2.20% +4.16% +3.10%
Mexico (EWW) +0.15% -0.67% +0.97% +9.01% +45.19% +37.73%
Thailand (THD) -0.03% -0.19% -0.29% +3.78% -0.90% -5.45%
Taiwan (EWT) -0.27% -4.10% -3.98% +4.01% +20.75% +19.06%
Emerging (EEM) -0.35% -2.02% -0.61% +8.09% +30.00% +27.36%
Brazil (EWZ) -0.67% -2.08% +9.36% +18.75% +46.96% +26.78%
China (MCHI) -0.82% -2.50% -2.21% +3.89% +33.40% +33.56%

Fixed Income

The fixed income market was relatively quiet, with most segments seeing minor fluctuations. Emerging USD (EMB) was a bright spot, ticking up +0.17%. Credit spreads remained stable, with Taxable High Yield (HYG) edging higher by +0.05%. Long-duration assets saw slight weakness as yields adjusted.

Category (Ticker) 1 Day WTD 1 Month 3 Month YTD 1 Year
Emerging USD (EMB) +0.17% +0.16% +0.83% +3.59% +12.78% +11.78%
Convertible (CWB) +0.14% -0.27% -4.01% +4.48% +14.98% +12.70%
Taxable High Yield (HYG) +0.05% -0.09% -0.20% +1.18% +6.94% +6.84%
Mortgage Backed (MBS) +0.02% +0.01% -0.48% +2.78% +7.45% +7.34%
Taxable Core (AGG) 0.00% +0.08% -0.55% +2.07% +6.70% +6.30%
Taxable Ultrashort (BIL) 0.00% +0.02% +0.33% +1.00% +3.69% +4.23%
Bank Loans (BKLN) 0.00% -0.14% +0.92% +1.52% +5.34% +5.89%
Corporate (SPIB) 0.00% +0.12% -0.22% +1.56% +7.03% +7.02%
Municipal Short (SUB) -0.02% +0.05% +0.03% +0.33% +3.07% +3.26%
Taxable Core Enhanced (IUSB) -0.02% +0.06% -0.46% +2.05% +6.83% +6.54%
Municipal Long (MLN) -0.03% +0.05% -0.28% +6.15% +1.69% +1.74%
Government Short (SPTS) -0.03% +0.10% +0.06% +1.17% +4.41% +5.13%
Government Intermediate (SPTI) -0.03% +0.17% -0.20% +1.73% +7.08% +6.87%
Taxable Short-Term (BSV) -0.05% +0.10% -0.04% +1.24% +5.34% +5.79%
Taxable Multisector (PYLD) -0.06% -0.11% 0.00% +2.23% +8.16% +8.78%
Municipal High Yield (HYD) -0.07% +0.46% +0.19% +4.66% +1.77% +1.57%
Emerging (EMLC) -0.08% -0.12% +0.63% +2.88% +16.35% +14.08%
International USD (BNDX) -0.10% -0.02% -0.49% +1.11% +2.98% +3.44%
Taxable Long Term (BLV) -0.11% +0.07% -1.96% +2.97% +6.70% +4.25%
Inflation Protected (TIP) -0.13% -0.04% -0.55% +1.51% +6.90% +5.93%
Government Long (SPTL) -0.15% +0.04% -1.78% +3.58% +6.07% +3.49%
Municipal Intermediate (MUB) -0.15% +0.07% -0.09% +3.66% +3.16% +2.69%
Preferred Stock (PFF) -0.42% -1.28% -2.39% -1.65% +2.47% +0.16%
International (IGOV) -0.69% -1.23% -2.28% -1.09% +8.43% +5.95%

Commodities

Commodities diverged as energy volatility persisted. Natural Gas (UNG) spiked +3.38%, while WTI Crude Oil (USO) slid -2.23%. Metals were generally stronger, with Copper (CPER) rising +1.07% and Silver (SLV) up +0.76%, reflecting pockets of economic optimism.

Commodity (Ticker) 1-Day % Change WTD 1 Month 3 Month YTD 1 Year
Natural Gas (UNG) +3.38% +0.96% +23.84% +20.89% -12.55% +5.98%
Copper (CPER) +1.07% -0.61% +1.01% +12.91% +23.73% +19.04%
Industrial Metals (DBB) +0.99% -0.70% +2.29% +10.86% +13.69% +11.56%
Silver (SLV) +0.76% +1.07% -1.15% +37.14% +76.41% +62.98%
Platinum (PPLT) +0.48% +0.06% -3.88% +17.65% +69.22% +57.63%
Precious Metals (DBP) +0.24% -0.11% -2.91% +24.39% +54.92% +53.46%
Gold (GLD) +0.16% -0.27% -3.61% +22.83% +54.86% +54.15%
Broad Commodities (DJP) -0.38% -0.03% +3.54% +11.77% +15.74% +17.53%
Sugar (CANE) -0.40% -0.72% -4.49% -13.78% -17.40% -26.79%
Soybeans (SOYB) -1.10% +0.47% +7.54% +6.83% +9.26% +9.62%
Agriculture (DBA) -1.17% 0.00% -1.70% -3.83% -1.88% +3.59%
Palladium (PALL) -1.40% -1.28% -4.80% +24.85% +51.17% +32.79%
Corn (CORN) -1.53% -0.87% +1.17% +4.43% -5.46% -2.29%
Wheat (WEAT) -1.62% +1.19% +5.19% +1.67% -11.62% -13.94%
Energy (DBE) -1.91% -0.40% +7.50% +4.44% +4.27% +7.03%
Brent Crude Oil (BNO) -2.19% -1.12% +4.31% -1.02% -2.94% -0.65%
WTI Crude Oil (USO) -2.23% -0.70% +4.27% -1.96% -6.18% -1.98%
Gasoline (UGA) -3.11% -3.42% +9.16% +7.78% +6.49% +7.28%

Cryptocurrency

Digital assets faced selling pressure alongside the caution in broader risk markets during regular trading. Bitcoin (IBIT) dropped -3.67%, while Ethereum (ETHA) underperformed significantly, shedding -5.72%.

Asset (Ticker) 1-Day % Change WTD 1 Month 3 Month YTD 1 Year
Ethereum (ETHA) -5.72% -6.12% -23.15% -28.95% -12.06% -5.56%
Solana (SOLZ) -5.68% -4.63% -27.76% -27.87%
Multi-Coin (NCIQ) -4.06% -5.30% -17.74% -23.85%
Bitcoin (IBIT) -3.67% -5.13% -16.11% -20.97% -4.37% -3.74%

What to Watch Today

All eyes this morning are on the market’s reaction to Nvidia’s earnings, released after the bell yesterday. The AI giant beat expectations on both revenue and earnings, signaling that the infrastructure boom remains intact. Investors will be watching closely to see if this positive news can catalyze a broader rally in the tech sector and lift the S&P 500 further. On the economic calendar, jobless claims and the Philadelphia Fed Manufacturing Index are due at 8:30 AM ET, offering fresh insights into the labor market and industrial activity. Existing Home Sales data follows at 10:00 AM ET.

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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.