Yields Press Tech, Cannabis Explodes

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Macro Overview

U.S. equity markets faced significant pressure on Friday, driven by a sharp sell-off in technology and semiconductor stocks which dragged major indices lower. The S&P 500 (IVV) declined -1.07%, capping a challenging week as rising yields dampened sentiment for long-duration growth assets. Despite the broader weakness, a massive, headline-driven rally in the cannabis sector provided a stark counter-narrative, with funds surging over +50% on regulatory optimism. Defensive positioning was evident elsewhere, as Consumer Staples and Health Care managed to buck the trend and close in positive territory.

U.S. Size & Style

The sell-off was most acute in the growth factor, with Large Growth (IVW) tumbling -1.63%, significantly underperforming Large Value (IVE), which fell a more modest -0.38%. Small caps also struggled, as Small Cap (IJR) dropped -1.07%, though value-oriented small companies slightly outperformed their growth counterparts.

Name (Ticker) 1 Day WTD 1 Month 3 Month YTD 1 Year
Large Value (IVE) -0.38% 0.80% 0.75% 5.21% 13.33% 9.54%
Large Cap (IVV) -1.07% -0.57% -0.21% 4.01% 17.47% 14.26%
Large Growth (IVW) -1.63% -1.69% -0.99% 2.97% 20.96% 18.04%
Mid Value (IJJ) -0.98% 1.62% 3.69% 3.00% 8.92% 4.20%
Mid Cap (IJH) -1.31% 0.95% 2.46% 2.44% 8.79% 3.21%
Mid Growth (IJK) -1.50% 0.46% 1.42% 2.01% 8.48% 1.97%
Small Value (IJS) -0.98% 2.48% 4.04% 6.46% 9.16% 3.13%
Small Cap (IJR) -1.07% 2.05% 3.87% 5.17% 8.86% 2.38%
Small Growth (IJT) -1.10% 1.75% 3.71% 3.90% 8.54% 1.51%

U.S. Sectors & Industries

Sector performance highlighted a clear rotation into defensive and value-oriented areas. Consumer Staples (XLP) led the pack, rising +0.79%, followed by resilient performance in Consumer Discretionary (XLY) and Health Care (XLV). Conversely, Technology (XLK) was the day’s biggest laggard, plunging -2.89%. Beneath the surface, the damage was concentrated in Semiconductors (XSD), which fell -4.82%, and Software (XSW), down -1.64%.

Sector (Ticker) 1 Day WTD 1 Month 3 Month YTD 1 Year
Consumer Staples (XLP) +0.79% 1.22% 2.72% -0.43% 2.96% -0.84%
Consumer Discretionary (XLY) +0.43% 0.81% 1.45% 1.34% 8.30% 3.78%
Health Care (XLV) +0.31% 0.52% 0.81% 12.06% 13.47% 11.20%
Financial (XLF) +0.15% 2.37% 2.38% 2.47% 14.87% 12.45%
Materials (XLB) +0.07% 2.40% 2.44% -1.04% 8.88% 2.33%
Real Estate (XLRE) -0.12% -0.59% -1.50% -3.05% 2.50% -2.04%
Communication Services (XLC) -0.22% -0.50% 2.65% -0.33% 21.45% 15.39%
Utilities (XLU) -0.49% -1.09% -4.74% 0.85% 15.52% 13.62%
Industrials (XLI) -0.63% 1.40% 1.52% 3.83% 20.17% 15.49%
Energy (XLE) -0.98% -0.89% 0.85% 3.61% 8.89% 4.89%
Technology (XLK) -2.89% -1.99% -2.23% 6.23% 24.17% 21.49%

Global Thematic

The thematic landscape was dominated by an explosive move in cannabis stocks. Cannabis & Vice (CNBS) skyrocketed +54.57% amid reports of potential federal regulatory easing. On the flip side, speculative tech and energy transition themes came under heavy fire. Crypto Miners (WGMI) and Clean Energy (PBW) were among the worst performers, highlighting a “risk-off” tone for high-beta segments.

Developed Markets ex-U.S.

International developed markets drifted lower, with Dev ex-U.S. (EFA) falling -0.53%. South Korea (EWY) was a notable underperformer, dropping -2.41%, likely influenced by the broader weakness in the semiconductor complex. Netherlands (EWN) also struggled, down -1.51%.

Country (Ticker) 1-Day % Change WTD 1 Month 3 Month YTD 1 Year
Dev ex-U.S. (EFA) -0.53% 0.72% -0.06% 3.77% 29.83% 25.78%
Australia (EWA) -0.45% 0.68% -0.23% -2.64% 12.84% 8.63%
Canada (EWC) -0.35% 1.13% 4.14% 8.65% 34.62% 30.44%
France (EWQ) -0.27% 0.58% -0.58% 3.20% 27.91% 25.82%
Germany (EWG) -0.50% 1.86% 1.20% 2.11% 34.75% 29.85%
Hong Kong (EWH) -0.18% -0.82% -5.49% -0.23% 34.07% 30.71%
Japan (EWJ) -0.26% 0.36% -0.40% 4.01% 26.20% 22.22%
Netherlands (EWN) -1.51% 0.09% -0.73% 7.21% 33.47% 30.16%
South Korea (EWY) -2.41% -1.73% -3.39% 17.81% 82.10% 71.08%
Switzerland (EWL) -0.21% 0.59% 0.53% 4.89% 29.42% 25.99%
U.K. (EWU) -0.85% 0.14% -0.53% 3.20% 30.28% 26.70%

Emerging Markets

Emerging markets showed divergence, with Emerging (EEM) down -1.17%. A bright spot was Brazil (EWZ), which managed a +0.48% gain. In contrast, Taiwan (EWT) faced sharp selling pressure, falling -2.76% as tech-heavy constituents weighed on the index.

Country (Ticker) 1-Day % Change WTD 1 Month 3 Month YTD 1 Year
Emerging (EEM) -1.17% -0.91% -2.41% 3.79% 30.94% 26.59%
Brazil (EWZ) +0.48% 2.43% 0.30% 10.96% 50.72% 37.85%
China (MCHI) -0.28% -1.82% -4.74% -3.80% 32.56% 29.56%
India (INDA) -0.80% -1.54% -2.60% -0.02% 0.95% -3.20%
Indonesia (EIDO) +0.43% -0.32% 1.74% 5.22% 4.25% -3.04%
Malaysia (EWM) +0.41% 1.28% 1.70% 5.93% 12.32% 13.92%
Mexico (EWW) -0.52% 2.93% 3.71% 6.91% 53.72% 44.28%
South Africa (EZA) -1.25% 1.10% 0.81% 13.31% 65.69% 49.36%
Taiwan (EWT) -2.76% -1.91% -2.00% 2.02% 23.84% 22.45%
Thailand (THD) -0.48% -0.83% 0.20% -2.29% 1.00% -3.43%

Fixed Income

Treasury yields pushed higher, creating headwinds for long-duration assets. Government Long (SPTL) dropped -0.82%, while broader exposure via Taxable Core (AGG) fell -0.31%. Shorter-duration instruments held steady, with Taxable Ultrashort (BIL) eking out a +0.04% gain.

Category (Ticker) 1 Day WTD 1 Month 3 Month YTD 1 Year
Taxable Core (AGG) -0.31% -0.22% -0.28% 0.25% 6.76% 5.59%
Taxable Core Enhanced (IUSB) -0.24% -0.19% -0.22% 0.42% 6.98% 5.86%
Taxable Multisector (PYLD) -0.11% -0.09% 0.29% 1.23% 8.92% 8.29%
Taxable Ultrashort (BIL) +0.04% 0.09% 0.36% 0.98% 3.98% 4.21%
Taxable Short-Term (BSV) -0.03% 0.05% 0.25% 0.81% 5.65% 5.58%
Taxable Long Term (BLV) -0.81% -0.86% -1.75% -1.41% 6.00% 2.61%
Government Short (SPTS) +0.03% 0.10% 0.35% 0.94% 4.74% 5.02%
Government Intermediate (SPTI) -0.14% -0.14% -0.11% 0.38% 7.12% 6.24%
Government Long (SPTL) -0.82% -0.79% -2.32% -1.41% 4.84% 1.52%
Inflation Protected (TIP) -0.15% -0.20% -0.52% -0.50% 6.75% 5.39%
Corporate (SPIB) -0.18% -0.12% 0.22% 0.69% 7.45% 6.70%
Taxable High Yield (HYG) -0.19% -0.22% 0.52% 0.97% 8.00% 7.22%
Bank Loans (BKLN) 0.00% 0.24% 0.81% 1.90% 6.40% 6.55%
Preferred Stock (PFF) -0.42% 0.49% 0.22% -1.38% 4.85% 2.74%
Convertible (CWB) -1.26% -0.43% -1.11% 2.45% 17.78% 13.52%
Mortgage Backed (MBS) -0.36% -0.20% -0.22% 0.58% 7.70% 6.56%
International USD (BNDX) -0.06% -0.26% -0.84% 0.20% 2.66% 2.16%
International (IGOV) -0.17% 0.26% -0.38% -1.20% 9.71% 7.20%
Emerging USD (EMB) -0.05% -0.07% 0.14% 2.31% 13.38% 11.10%
Emerging (EMLC) -0.12% 0.23% 0.81% 2.23% 17.53% 15.05%
Municipal Short (SUB) +0.02% 0.19% 0.35% 0.11% 3.37% 3.33%
Municipal Intermediate (MUB) -0.11% -0.06% -0.22% 1.20% 3.25% 2.49%
Municipal Long (MLN) -0.17% -0.11% -0.75% 1.45% 1.19% 0.28%
Municipal High Yield (HYD) -0.06% 0.21% 0.46% 1.58% 2.21% 1.80%

Commodities

Commodities were generally softer, weighed down by strength in the dollar and global growth concerns. Broad Commodities (DJP) fell -1.32%, with Natural Gas (UNG) declining -2.68%. A notable exception was Platinum (PPLT), which rallied +2.83%, diverging from other industrial metals like Copper (CPER).

Name (Ticker) 1-Day % Change WTD 1 Month 3 Month YTD 1 Year
Broad Commodities (DJP) -1.32% -2.83% -0.67% 7.05% 16.36% 16.25%
Energy (DBE) -1.32% -5.53% -4.49% -3.29% -1.46% 1.15%
WTI Crude Oil (USO) -0.64% -4.32% -1.40% -6.14% -8.92% -6.01%
Brent Crude Oil (BNO) -0.53% -4.01% -1.46% -6.05% -5.68% -4.17%
Natural Gas (UNG) -2.68% -22.24% -13.11% 1.76% -24.27% -15.36%
Gasoline (UGA) -0.74% -4.43% -6.53% -1.71% 0.41% 0.77%
Precious Metals (DBP) +0.09% 3.09% 4.93% 21.96% 67.91% 64.30%
Gold (GLD) +0.56% 2.33% 2.45% 17.89% 63.32% 59.92%
Silver (SLV) -2.64% 5.95% 16.10% 46.32% 113.07% 98.94%
Platinum (PPLT) +2.83% 6.24% 7.84% 24.70% 91.49% 86.33%
Palladium (PALL) +0.02% 2.63% 1.65% 23.35% 63.43% 53.22%
Industrial Metals (DBB) -1.38% -1.11% 1.74% 8.78% 17.67% 14.78%
Copper (CPER) -2.32% -1.56% 4.22% 14.79% 30.48% 24.26%
Agriculture (DBA) -0.45% 0.00% 0.45% -3.56% -0.26% 0.54%
Corn (CORN) -0.84% -0.56% -1.53% -0.84% -5.43% -3.43%
Soybeans (SOYB) -1.31% -2.21% -3.97% 0.90% 4.84% 5.89%
Wheat (WEAT) -0.68% -0.82% -4.29% -2.24% -14.81% -15.51%
Sugar (CANE) +1.14% 1.86% 4.23% -7.98% -14.70% -20.99%

Cryptocurrency

Digital assets faced selling pressure, tracking the broader “risk-off” sentiment in equities. Ethereum (ETHA) led the decline, falling -4.55%, while Bitcoin (IBIT) saw a more moderate drop of -1.73%.

Asset (Ticker) 1-Day % Change WTD 1 Month 3 Month YTD 1 Year
Ethereum (ETHA) -4.55% 1.84% -9.77% -34.19% -7.99% -21.04%
Solana (SOLZ) -3.29% -0.95% -14.92% -47.57%
Multi-Coin (NCIQ) -2.14% 0.85% -11.33% -26.54%
Bitcoin (IBIT) -1.73% 1.01% -11.10% -22.87% -3.49% -10.05%
XRP -1.23% -1.19%

What to Watch Today

Investors turn their attention this morning to the Empire State Manufacturing Survey, set for release at 8:30 AM ET. As a leading indicator for the nation’s industrial health, this report will be scrutinized for signs of stabilization in the manufacturing sector following recent soft data. Later in the morning, the NAHB Housing Market Index (10:00 AM ET) will provide fresh insights into homebuilder confidence and the broader real estate market, which remains sensitive to fluctuating interest rates.

For a deeper dive into the data, access today’s full Daily ETF Data Pack.

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.