Clean Energy Rebounds Amid a Broad Commodity Reversal

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Macro Overview

U.S. equity markets reopened from the holiday weekend with a measured, mixed performance as the S&P 500 (IVV) edged up 0.16%, while tech-heavy growth segments faced lingering pressure from AI disruption narratives. International developed markets (EFA) remained essentially flat, though specific regions like South Korea (EWY) saw a significant 2.46% decline on the day. Fixed income markets showed modest strength in long-duration Treasuries (SPTL) as yields softened, while the commodity complex (DJP) dropped 1.55%, weighed down by a sharp reversal in precious metals. A notable outlier was the silver market (SLV), which plunged 4.80% as investors unwound risk premiums amid geopolitical developments.

U.S. Size & Style

Growth segments led the daily advance as the market attempted to recover from recent software-driven volatility, with Mid Cap Growth (IJK) rising 0.43% and Large Growth (IVW) gaining 0.33%. Despite the daily bounce, Large Growth remains significantly oversold with an RSI of 40.02 and sits 5.45% below its 52-week high. Conversely, value-oriented segments like Small Value (IJS) lagged the broader market with a 0.22% decline, though it maintains the strongest breadth in the category with 66.01% of constituents trading above their 50-day SMA.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Mid Growth (IJK) 0.43% 1.31% 13.13% 8.15% 13.14%
Large Growth (IVW) 0.33% -3.66% -0.45% -3.13% 12.48%
Mid Cap (IJH) 0.18% 1.87% 13.83% 8.14% 13.27%
Large Cap (IVV) 0.16% -1.27% 2.88% 0.13% 13.38%
Small Growth (IJT) 0.00% 1.15% 13.71% 8.03% 10.46%
Large Value (IVE) -0.05% 1.35% 6.68% 3.83% 13.92%
Mid Value (IJJ) -0.08% 2.37% 14.46% 7.98% 13.22%
Small Cap (IJR) -0.11% 1.70% 14.98% 8.85% 13.42%
Small Value (IJS) -0.22% 2.21% 16.30% 9.58% 16.40%

U.S. Sectors & Industries

Cyclical and defensive sectors showed strength today, led by Financials (XLF) up 1.06% and Real Estate (XLRE) gaining 1.01%. Utilities (XLU) and Industrials (XLI) continue to exhibit extreme technical overextension, with RSIs reaching overbought levels of 76.40 and 70.83, respectively. Consumer Staples (XLP) was the primary laggard, falling 1.46% on the day, although the sector still maintains 91.67% of its constituents above their 50-day moving averages.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Financial (XLF) 1.06% -4.11% 1.81% -4.69% 2.16%
Real Estate (XLRE) 1.01% 4.10% 9.19% 8.90% 8.03%
Industrials (XLI) 0.52% 4.90% 16.71% 12.87% 29.01%
S&P 500 (SPY) 0.16% -1.27% 2.88% 0.14% 13.31%
Technology (XLK) -0.06% -4.22% -1.50% -3.12% 16.96%
Consumer Discretionary (XLY) -0.12% -5.12% 1.67% -2.82% 3.11%
Communication Services (XLC) -0.16% -0.67% 3.23% -2.82% 9.94%
Health Care (XLV) -0.19% 1.05% 4.18% 1.66% 10.59%
Utilities (XLU) -0.26% 6.89% 4.35% 8.64% 20.60%
Energy (XLE) -1.10% 12.71% 20.00% 20.22% 23.34%
Materials (XLB) -1.14% 8.26% 23.98% 16.21% 19.62%
Consumer Staples (XLP) -1.46% 7.42% 15.81% 13.54% 12.40%

Global Thematic

Clean energy and biotechnology themes reclaimed momentum today, with the Solar ETF (TAN) surging 3.37% and the Genomics & Immunology (ARKG) up 2.01%. In contrast, the mining thematic faced a severe broad-based sell-off following the unwinding of precious metals premiums. Silver Miners (SIL) fell 4.03%, while Gold Miners (GDX) dropped 3.55%, reflecting sensitivity to the cooling risk environment in physical metals.

Name (Ticker) 1-Day % Change
1-Day Performance Leaders
REX Drone ETF (DRNZ) 4.22%
Solar (TAN) 3.37%
Clean Energy (FRNW) 2.48%
Disruptive Medicine (FMED) 2.42%
Wind (FAN) 2.25%
1-Day Performance Laggards
Silver Miners (SIL) -4.03%
Gold Miners (GDX) -3.55%
Crypto Miners (WGMI) -3.24%
Cloud Computing (SKYY) -1.92%
Cybersecurity (HACK) -1.76%

Developed ex-U.S. & Emerging Markets

Divergent performances dominated the international landscape today as Switzerland (EWL) and Hong Kong (EWH) led Developed gains, rising 1.02% and 1.21% respectively. However, significant selling pressure hit the Japanese (EWJ) and South Korean (EWY) markets, which declined over 2% each following disappointing regional economic data. In Emerging Markets, Thailand (THD) surged 1.04% to an extremely overbought RSI of 79.65, while Brazil (EWZ) and South Africa (EZA) faced notable declines near 1%.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Developed ex-U.S.
Hong Kong (EWH) 1.21% 3.95% 8.18% 10.26% 45.50%
Switzerland (EWL) 1.02% 6.49% 13.43% 7.47% 27.73%
Netherlands (EWN) 0.94% 0.52% 12.65% 9.12% 33.79%
France (EWQ) 0.75% 3.89% 6.99% 4.58% 20.02%
Australia (EWA) 0.55% 9.65% 16.32% 11.95% 18.88%
U.K. (EWU) 0.36% 4.96% 13.90% 7.82% 34.96%
Germany (EWG) 0.16% 1.62% 10.07% 3.62% 22.92%
Dev ex-U.S. (EFA) -0.02% 4.71% 12.87% 8.53% 31.76%
Canada (EWC) -0.55% 1.32% 11.96% 3.58% 34.54%
Japan (EWJ) -2.11% 7.48% 15.62% 13.79% 38.56%
South Korea (EWY) -2.46% 16.45% 43.68% 34.42% 135.80%
Emerging Markets
Thailand (THD) 1.04% 16.84% 22.48% 19.04% 30.45%
India (INDA) 0.72% 0.79% -2.53% -1.44% 7.42%
China (MCHI) 0.43% -3.06% -2.27% 0.90% 15.89%
Indonesia (EIDO) 0.28% -6.90% -2.11% -4.71% 4.57%
Taiwan (EWT) -0.22% 8.24% 20.72% 14.73% 44.55%
Malaysia (EWM) -0.24% 5.25% 14.83% 8.37% 25.91%
Mexico (EWW) -0.33% 9.14% 24.99% 16.49% 59.14%
Emerging (EEM) -0.41% 5.18% 13.69% 11.26% 40.37%
South Africa (EZA) -0.81% 2.65% 19.18% 8.59% 72.57%
Brazil (EWZ) -0.84% 13.78% 19.27% 18.79% 50.96%

Fixed Income

In the fixed income space, we observed a constructive move toward duration and higher credit quality as yields pulled back. Long-term Treasuries (SPTL) and International USD bonds (BNDX) each rose 0.22% and 0.18% respectively, signaling a pivot toward quality. Credit markets remained mostly resilient, though High Yield (HYG) and short-term Treasuries (SPTS) faced minor headwind, declining 0.05% and 0.10% on the day.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Multisector
Taxable Long Term (BLV) 0.18% 2.18% 2.44% 2.83% 7.12%
Taxable Core (AGG) 0.01% 1.28% 1.98% 1.45% 7.50%
Taxable Core Enhanced (IUSB) 0.00% 1.22% 1.98% 1.41% 7.62%
Taxable Short-Term (BSV) -0.04% 0.76% 1.38% 0.67% 6.06%
Government
Government Long (SPTL) 0.22% 2.62% 2.16% 3.12% 6.16%
Taxable Ultrashort (BIL) 0.01% 0.28% 0.92% 0.45% 4.08%
Government Intermediate (SPTI) -0.03% 1.30% 1.48% 1.06% 7.61%
Government Short (SPTS) -0.10% 0.52% 1.16% 0.49% 5.15%
Inflation Protected (TIP) -0.14% 1.10% 1.02% 1.20% 6.00%
Specialty
Preferred Stock (PFF) 0.44% 0.72% 5.29% 3.39% 6.60%
Convertible (CWB) 0.29% 1.04% 8.05% 6.35% 18.64%
Corporate (SPIB) 0.03% 1.01% 1.99% 1.07% 7.92%
Bank Loans (BKLN) 0.05% -1.44% 0.13% -1.16% 5.02%
Taxable High Yield (HYG) -0.05% 0.15% 2.35% 0.72% 7.37%
Mortgage Backed (MBS) -0.22% 1.16% 2.49% 1.53% 8.75%
International & EM
Emerging USD (EMB) 0.21% 1.90% 2.94% 1.83% 12.90%
International USD (BNDX) 0.18% 0.98% 1.21% 1.44% 3.85%
Emerging (EMLC) 0.15% 2.75% 5.32% 3.18% 18.13%
International (IGOV) 0.07% 3.52% 3.66% 3.14% 11.09%
Municipals
Municipal High Yield (HYD) 0.18% 0.25% 2.21% 0.78% 3.22%
Municipal Long (MLN) 0.08% 1.04% 1.31% 1.13% 3.06%
Municipal Intermediate (MUB) 0.06% 0.93% 1.97% 1.40% 4.82%
Municipal Short (SUB) 0.02% 0.45% 1.48% 0.88% 3.98%

Commodities

The broad commodity composite (DJP) experienced a 1.55% daily decline, driven primarily by a 3.28% plunge in precious metals (DBP) as safe-haven premiums eroded. Industrial metals (DBB) also faced headwinds, falling 1.78%, while the energy sector (DBE) showed relative resilience despite a 4.34% drop in Natural Gas (UNG). Agriculture (DBA) remained the most stable component, down just 0.31% as Soybeans (SOYB) provided a neutral anchor.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Broad Commodities (DJP) -1.55% 2.32% 8.21% 6.57% 14.81%
Agriculture
Agriculture (DBA) -0.31% 0.43% 0.76% 0.74% -5.46%
Soybeans (SOYB) 0.04% 6.69% -1.47% 7.27% 5.96%
Sugar (CANE) -0.11% -6.82% -5.20% -7.53% -26.31%
Wheat (WEAT) -1.00% 2.01% -3.95% 4.01% -21.62%
Corn (CORN) -1.13% 1.60% -3.15% -1.58% -14.12%
Energy
Gasoline (UGA) 0.47% 5.77% -1.08% 10.21% 5.18%
Brent Crude Oil (BNO) -0.34% 6.50% 8.35% 12.22% 3.72%
WTI Crude Oil (USO) -0.64% 5.69% 6.21% 9.50% -0.12%
Energy (DBE) -0.65% 5.65% 1.73% 8.70% 1.99%
Natural Gas (UNG) -4.34% 15.20% -15.72% -2.94% -39.44%
Industrial Metals
Copper (CPER) -1.74% -2.78% 13.04% -0.06% 19.37%
Industrial Metals (DBB) -1.78% -2.53% 11.52% 0.96% 23.77%
Precious Metals
Palladium (PALL) 0.04% -5.87% 21.55% 5.61% 71.58%
Platinum (PPLT) -2.17% -12.59% 31.11% -1.88% 104.14%
Gold (GLD) -3.12% 6.39% 20.60% 13.09% 68.31%
Precious Metals (DBP) -3.28% -0.19% 24.42% 10.08% 74.65%
Silver (SLV) -4.80% -18.08% 45.96% 3.03% 126.44%

Cryptocurrency

The digital asset market faced broad selling pressure today, with Ethereum (ETHA) leadings the decline among major coins, falling 2.53%. Multi-coin composites (NCIQ) and Bitcoin (IBIT) also declined over 1% on the day, extending their significant 1-month corrections. In a notable divergence, XRP and Solana (SOLZ) showed relative strength, with XRP surging 4.86% as a definitive winner in a largely red session.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Ethereum (ETHA) -2.53% -39.51% -33.73% -32.90% -27.22%
Bitcoin (IBIT) -1.49% -29.22% -26.31% -22.68% -30.62%
Multi-Coin (NCIQ) -1.14% -30.83% -28.09% -23.98% -31.74%
Solana (SOLZ) 0.12% -41.66% -35.42% -31.95%
XRP 4.86% -28.77% -19.05%

What to Watch Today

As markets move into the holiday-shortened week, the immediate focus remains on the Federal Open Market Committee (FOMC) minutes scheduled for release tomorrow, which will be scrutinized for a pivot toward potentially sooner-than-expected rate cuts. Friday’s upcoming “data deluge”—featuring the simultaneous release of PCE inflation and Q4 GDP following the recent government shutdown backlog—is being billed as a critical “reality check” for the soft-landing narrative. Traders are also closely monitoring second-round nuclear negotiations in Geneva, as any geopolitical de-escalation could further unwind the risk premiums recently seen in commodities and precious metals.

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.