Energy and Oil Surge While Chipmakers and Health Care Slide

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Macro Overview

U.S. equities were essentially flat on the day, with the S&P 500 (IVV) edging up 0.01% as investors digested the opening round of bank earnings. Developed ex-U.S. markets (EFA) outperformed with a 0.41% advance, while Emerging Markets (EEM) slipped 0.62%, weighed down by weakness in South Korea and Brazil. Fixed income was broadly stable, with the U.S. Aggregate Bond (AGG) up a modest 0.05% as bond yields eased on comments from New York Fed President Williams tempering expectations for aggressive rate hikes. The clear outlier was Broad Commodities (DJP), which gained 0.76% on the day and is now up 40.68% year-to-date, driven by a nearly $2 jump in oil prices tied to Middle East escalation.

U.S. Size & Style

Style and size performance was mixed but tilted toward value and mid-cap names, with Mid Value (IJJ) leading at 0.48% while Large Growth (IJW) and Small Growth (IJT) each slipped 0.23%. Large Cap (IVV) held an RSI of 59, keeping it in neutral territory, while Small Cap (IJR) registered an RSI of 40, reflecting more muted momentum. Breadth remained narrow across the cap spectrum, with only 30% of Small Cap (IJR) constituents trading above their 50-day moving average versus 39% for Large Cap (IVV). Year-to-date, Small Value (IJS) and Small Cap (IJR) are both up over 15%, roughly in line with Large Growth (IVW) at 17.60%, underscoring a relatively balanced year across the style spectrum despite today’s divergence.

Name (Ticker)1-Day1 Month3 MonthYTD1 Year
Large Value (IVE)0.07%-0.13%1.79%11.66%16.45%
Large Cap (IVV)0.01%2.07%4.15%15.04%18.69%
Large Growth (IVW)-0.04%3.87%6.03%17.60%20.19%
Mid Value (IJJ)0.48%-2.42%-3.21%8.41%12.35%
Mid Cap (IJH)0.14%-1.28%-2.33%11.88%15.07%
Mid Growth (IJK)-0.23%-0.43%-1.64%14.87%17.34%
Small Value (IJS)0.36%-3.28%-3.64%15.20%21.46%
Small Cap (IJR)0.09%-2.88%-4.75%15.44%19.56%
Small Growth (IJT)-0.23%-2.51%-5.95%15.31%17.48%

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U.S. Sectors & Industries

Energy (XLE) was the standout sector, rising 1.80% on the day and pushing its RSI to 70, an overbought reading, as oil prices jumped on Middle East escalation; the sector is now up 53.28% year-to-date with 81% of constituents above their 50-day average. Utilities (XLU) and Communication Services (XLC) also advanced, gaining 0.58% and 0.74% respectively. On the downside, Health Care (XLV) fell 1.35%, the session’s weakest sector, pressured by Johnson & Johnson’s over 5% decline following its earnings report. Technology (XLK) slipped a modest 0.04% as memory-chip names came under pressure amid intensifying competition from China’s CXMT, even as the sector remains up 36.82% year-to-date. Financials (XLF) declined 0.42% as investors parsed mixed bank earnings, with Wells Fargo and JPMorgan both posting declines.

Name (Ticker)1-Day1 Month3 MonthYTD1 Year
S&P 500 (SPY)-0.01%2.05%4.11%14.98%18.60%
Energy (XLE)1.80%3.79%19.16%53.28%60.01%
Communication Services (XLC)0.74%0.03%0.94%-3.76%-0.16%
Utilities (XLU)0.58%-0.50%-7.74%0.12%-5.25%
Materials (XLB)0.57%-1.97%-1.25%11.04%14.73%
Consumer Discretionary (XLY)0.08%-0.31%-2.96%-5.32%-3.12%
Technology (XLK)-0.04%4.71%8.40%36.82%38.35%
Real Estate (XLRE)-0.21%-2.86%-5.64%6.14%5.82%
Consumer Staples (XLP)-0.26%1.64%0.18%10.47%11.13%
Industrials (XLI)-0.28%-1.88%-6.24%9.60%12.62%
Financials (XLF)-0.42%-3.91%-1.89%1.31%5.73%
Health Care (XLV)-1.35%2.99%5.51%10.95%21.51%

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Global Thematic

Thematic performance mirrored the day’s energy and commodity strength, with Roundhill Photonics & Optics (LYTE) leading gainers at 2.13%, followed closely by Invesco Solar (TAN) at 2.07% and iShares MSCI Agriculture Producers (VEGI) at 2.04%. On the laggard side, ALPS Medical Breakthroughs (SBIO) dropped 4.10%, consistent with broader Health Care weakness, while Roundhill Memory (DRAM) fell 3.44% as memory-chip names were pressured by overnight declines in South Korea and rising competitive threats from Chinese manufacturers. Tema Oncology (CANC) and Tema Space Innovators (NASA) each declined 3.25%, rounding out a day where niche technology and biotech themes underperformed broader commodity-linked strategies.

Name (Ticker)1-Day
Leaders
Roundhill Photonics & Optics ETF (LYTE)2.13%
Invesco Solar ETF (TAN)2.07%
iShares MSCI Agriculture Producers ETF (VEGI)2.04%
Cohen & Steers Future of Energy Active ETF (CSEN)1.48%
VanEck Agribusiness ETF (MOO)1.41%
Laggards
ALPS Medical Breakthroughs ETF (SBIO)-4.10%
Roundhill Memory ETF (DRAM)-3.44%
Tema Oncology ETF (CANC)-3.25%
Tema Space Innovators ETF (NASA)-3.25%
Sprott Rare Earths Ex-China ETF (REXC)-3.20%

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Developed ex-U.S. & Emerging Markets

Within developed markets, Hong Kong (EWH) led gainers with a 1.78% advance, while France (EWQ) and Canada (EWC) also posted solid gains of 0.95% and 0.77%, respectively. Japan (EWJ) was flat on the day but remains a standout performer over the trailing year, up 28.07%. In emerging markets, South Korea (EWY) declined 2.09% following the overnight memory-chip selloff tied to Chinese competitive pressures, though the country remains up an exceptional 71.32% year-to-date and 103.72% over the trailing year. India (INDA) rose 1.90% on the day, a notable divergence from its -12.60% year-to-date performance, while Brazil (EWZ) fell 1.54% despite remaining up 36.23% for the year.

Name (Ticker)1-Day1 Month3 MonthYTD1 Year
Developed Markets ex-U.S.
Developed ex-U.S. (EFA)0.41%-3.03%0.22%9.44%15.09%
Australia (EWA)0.35%-1.71%1.48%11.41%11.32%
Canada (EWC)0.77%-1.11%2.01%11.61%20.04%
France (EWQ)0.95%-7.34%-7.14%-5.27%-1.19%
Germany (EWG)0.59%-3.90%-0.07%-1.13%0.57%
Hong Kong (EWH)1.78%-0.75%4.93%6.86%11.11%
Japan (EWJ)0.00%-1.26%4.96%21.18%28.07%
Netherlands (EWN)-0.06%-2.68%-1.59%16.88%19.85%
South Korea (EWY)-2.09%-11.74%-0.87%71.32%103.72%
Switzerland (EWL)0.66%-0.68%-4.05%1.65%8.68%
U.K. (EWU)0.26%-2.34%0.99%7.99%15.31%
Emerging Markets
Emerging Markets (EEM)-0.62%-3.10%1.92%20.77%25.39%
Brazil (EWZ)-1.54%12.25%21.14%36.23%53.65%
China (MCHI)-0.03%-1.56%-0.75%-12.64%-16.08%
India (INDA)1.90%-2.74%-3.18%-12.60%-10.82%
Indonesia (EIDO)0.34%-8.16%-2.25%-36.26%-31.50%
Malaysia (EWM)0.63%-2.88%-1.96%0.57%8.72%
Mexico (EWW)0.00%-2.84%-1.23%7.19%15.71%
South Africa (EZA)0.86%-8.25%2.49%-4.53%4.97%
Taiwan (EWT)-0.71%2.30%11.37%78.59%83.84%
Thailand (THD)-0.27%-3.97%-1.60%22.06%25.00%

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Fixed Income

Fixed income markets were broadly positive but modest in magnitude, with longer-duration bonds outperforming as yields eased following Fed officials’ comments. Long-Term Treasuries (SPTL) gained 0.42%, the best performer among core categories, while Municipal Long-Term (MLN) rose 1.17%. High Yield (HYG) and Convertible (CWB) bonds lagged, declining 0.26% and 0.57% respectively, as credit-sensitive categories underperformed duration-sensitive ones. Year-to-date, longer-duration categories such as Long-Term Treasuries (BLV) remain down 5.88%, reflecting the broader rate environment that has pressured the asset class for much of the year.

Name (Ticker)1-Day1 Month3 MonthYTD1 Year
Multisector
Long-Term (BLV)0.19%-2.29%-4.73%-5.88%-7.36%
Core Enhanced (IUSB)0.09%-0.99%-2.00%-1.99%-1.60%
Core (AGG)0.05%-0.97%-2.05%-2.26%-2.02%
Short-Term (BSV)-0.03%-0.13%-0.39%-0.11%0.64%
Government
Long-Term (SPTL)0.42%-2.42%-5.04%-6.39%-8.17%
Intermediate (SPTI)0.07%-0.75%-1.86%-2.51%-2.11%
Inflation Protected (TIP)0.06%-1.21%-2.39%-1.61%-2.37%
Short-Term (SPTS)0.03%0.12%0.17%0.72%1.56%
Ultrashort (BIL)0.02%0.31%0.92%2.82%3.66%
Specialty
Preferred Stock (PFF)0.38%-2.29%-2.01%-1.53%-1.45%
Mortgage Backed (MBB)0.16%-1.14%-2.42%-2.39%-1.59%
Bank Loans (BKLN)-0.05%-0.03%1.80%2.17%4.66%
Corporate (SPIB)-0.06%-0.55%-1.29%-1.12%-0.26%
High Yield (HYG)-0.26%-1.49%-1.62%-0.06%1.63%
Convertible (CWB)-0.57%-3.38%-4.16%12.38%8.41%
International & EM
International Local (IGOV)0.53%-2.76%-1.95%-4.49%-4.33%
Emerging Local (EMLC)0.24%-1.49%-0.29%1.17%4.69%
Emerging USD (EMB)0.20%-1.75%-3.01%-1.39%0.87%
International USD (BNDX)0.09%0.29%-1.10%-0.63%-0.95%
Municipals
Long-Term (MLN)1.17%-1.59%-6.08%-3.61%-3.29%
High Yield (HYD)0.74%-0.97%-4.34%-2.15%-0.58%
Intermediate (MUB)0.60%-1.09%-4.01%-2.66%-1.79%
Short-Term (SUB)0.16%-0.24%-0.52%0.34%0.91%

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Commodities

Commodities were the strongest-performing asset class on the day, led by Natural Gas (UNG), which surged 4.49%, and the Energy complex (DBE), up 1.38%. WTI Crude (USO) rose 1.36% on Middle East escalation concerns and is now up a substantial 121.36% year-to-date, while Brent Crude (BNO) is up 129.87% over the same period. Precious metals moved in the opposite direction, with Silver (SLV) falling 1.58% and Platinum (PPLT) declining 1.44%, extending recent weakness that has left both metals down double digits year-to-date. Industrial metals were also softer, with Copper (CPER) off 0.44%, highlighting a bifurcated commodity tape dominated by energy strength.

Name (Ticker)1-Day1 Month3 MonthYTD1 Year
Broad Commodities (DJP)0.76%0.65%14.90%40.68%47.79%
Agriculture
Sugar (CANE)0.65%7.47%26.97%26.91%24.04%
Corn (CORN)0.11%-7.23%5.30%4.23%7.32%
Broad (DBA)-0.04%-1.73%2.56%11.40%11.51%
Soybeans (SOYB)-0.51%-0.62%7.90%25.02%26.65%
Wheat (WEAT)-0.74%-7.50%2.62%21.58%20.50%
Energy
Natural Gas (UNG)4.49%12.19%10.03%-6.93%-6.32%
Broad (DBE)1.38%5.00%34.60%123.53%120.33%
WTI Crude (USO)1.36%-1.17%29.97%121.36%117.83%
Brent Crude (BNO)-0.03%6.08%41.52%129.87%125.49%
Industrial Metals
Broad (DBB)-0.44%-1.46%2.29%9.15%21.72%
Copper (CPER)-0.44%3.24%6.62%15.70%28.05%
Precious Metals
Gold (GLD)-0.13%-4.29%3.96%-3.69%0.95%
Broad (DBP)-0.40%-5.12%3.53%-7.49%2.58%
Palladium (PALL)-1.12%-13.72%-10.34%-29.91%-24.46%
Platinum (PPLT)-1.44%-7.44%3.65%-19.27%1.48%
Silver (SLV)-1.58%-7.97%2.55%-16.97%13.18%

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Cryptocurrency

Digital assets were mixed but largely rangebound, with Bitcoin (IBIT) gaining 0.58% and XRP (XRP) up 0.72%, while Solana (SOLZ) and Ethereum (ETHA) each declined modestly, down 0.75% and 0.47% respectively. Despite the day’s muted moves, most crypto categories remain negative for the year, with Ethereum (ETHA) down 15.77% and XRP (XRP) off 25.34% year-to-date. Bitcoin (IBIT) has held up relatively better, down just 5.08% for the year, while three-month performance across the category remains strongly positive, with Solana (SOLZ) up 42.35% over that span.

Name (Ticker)1-Day1 Month3 MonthYTD1 Year
Solana (SOLZ)-0.75%5.00%42.35%-15.01%-50.19%
Ethereum (ETHA)-0.47%-1.39%41.31%-15.77%-41.29%
Multi-Coin (NCIQ)0.17%6.20%34.49%-8.39%-32.87%
Bitcoin (IBIT)0.58%7.68%33.82%-5.08%-28.38%
XRP (XRP)0.72%0.66%28.42%-25.34%—

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What to Watch Today

Wednesday brings the September Consumer Price Index and Core Inflation readings at 8:30 AM ET, which will be closely watched following Tuesday’s comments on the rate-hike path from Fed officials. The Federal Reserve’s Beige Book is scheduled for release at 2:00 PM ET, alongside speeches from Fed Governor Michelle Bowman in the morning and Fed presidents Barkin and Collins later in the day. Earnings season continues with BlackRock, Bank of America, and Morgan Stanley all reporting before the market open. Additionally, the IEA’s Monthly Oil Market Report is due out in the morning, which could provide further context following Tuesday’s oil-driven commodity rally.

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.