Energy Commodities Surge as Equity and Bond Markets Retreat

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Macro Overview

Global equity markets finished a mixed session with a downward bias, as the S&P 500 (IVV) edged lower by -0.16% and developed international stocks (EFA) were nearly flat. Emerging markets (EEM) notably underperformed, falling -1.07% on the day. Fixed income markets also saw broad declines, with the U.S. Aggregate Bond index (AGG) losing -0.29%, while broad commodities (DJP) were the clear outlier, gaining 0.84% on strong performance from the energy complex.

U.S. Size & Style

Within U.S. equities, a defensive posture was evident as smaller-capitalization stocks faced greater selling pressure than their larger counterparts. The S&P SmallCap 600 (IJR) declined by -0.75%, a more significant drop than the -0.16% dip in the S&P 500 (IVV). Growth stocks modestly outperformed value within the large- and mid-cap segments, though Small Cap Growth (IJT) was the weakest factor of the day, falling -0.89%.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Large Value (IVE) -0.23% 1.61% 4.79% 11.48% 21.33%
Large Cap (IVV) -0.16% 2.30% 4.98% 13.33% 22.89%
Large Growth (IVW) -0.09% 2.91% 5.15% 14.68% 23.91%
Mid Value (IJJ) -0.67% 1.53% 4.62% 14.20% 22.87%
Mid Cap (IJH) -0.32% 0.43% 3.11% 16.85% 24.09%
Mid Growth (IJK) -0.06% -0.69% 1.57% 19.12% 24.98%
Small Value (IJS) -0.63% 1.84% 6.33% 21.93% 38.15%
Small Cap (IJR) -0.75% 0.69% 6.72% 23.56% 35.15%
Small Growth (IJT) -0.89% -0.55% 7.10% 25.02% 32.14%

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U.S. Sectors & Industries

The Energy sector was the unambiguous leader, with the Energy Select Sector SPDR Fund (XLE) advancing 1.48% in a stark contrast to the broader market. Communication Services (XLC) and Health Care (XLV) were the only other sectors to post gains. On the downside, cyclical and rate-sensitive areas lagged, including Industrials (XLI), Real Estate (XLRE), and Materials (XLB), which all fell more than 0.85%.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
S&P 500 (SPY) -0.16% 2.30% 5.00% 13.31% 22.80%
Energy (XLE) 1.48% 9.47% 2.76% 31.86% 41.54%
Communication Services (XLC) 0.28% 0.88% -5.01% -5.00% 4.50%
Health Care (XLV) 0.18% 1.54% 13.60% 7.14% 28.20%
Consumer Staples (XLP) -0.26% 1.20% 1.74% 10.95% 7.18%
Technology (XLK) -0.31% 0.96% 9.13% 29.04% 41.64%
Financials (XLF) -0.33% 2.97% 11.90% 6.46% 13.00%
Consumer Discretionary (XLY) -0.46% 0.08% -1.28% -0.70% 6.52%
Utilities (XLU) -0.64% -4.24% -4.49% 2.97% 4.14%
Industrials (XLI) -0.85% -0.43% 4.72% 19.73% 23.98%
Real Estate (XLRE) -0.86% 1.17% 1.02% 12.76% 11.86%
Materials (XLB) -0.89% 0.37% -0.09% 15.97% 21.36%

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Global Thematic

Thematic performance was highly divergent, with cannabis-focused funds leading by a wide margin. The AdvisorShares Pure US Cannabis ETF (MSOS) surged 7.67%, followed by strong gains in other sector-specific funds like the Amplify Seymour Cannabis ETF (CNBS). Conversely, technology themes faced headwinds, particularly in the semiconductor space, where the Roundhill Memory ETF (DRAM) dropped -4.28%. Digital asset and cloud computing ETFs also experienced notable declines.

Name (Ticker) 1-Day
Leaders
AdvisorShares Pure US Cannabis ETF (MSOS) 7.67%
Amplify Seymour Cannabis ETF (CNBS) 5.92%
Amplify Alternative Harvest ETF (MJ) 3.33%
Putnam BDC Income ETF (PBDC) 3.26%
VanEck BDC Income ETF (BIZD) 3.14%
Laggards
Roundhill Memory ETF (DRAM) -4.28%
Tema Memory ETF (DISK) -3.70%
CoinShares Bitcoin Mining ETF (WGMI) -3.52%
Fidelity Cloud Computing ETF (FCLD) -3.35%
VanEck Digital Transformation ETF (DAPP) -3.01%

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Developed ex-U.S. & Emerging Markets

International markets were broadly lower, with emerging economies underperforming their developed peers. The MSCI Emerging Markets Index (EEM) fell -1.07%, weighed down by a sharp -2.97% decline in South Korea (EWY). In developed markets, the MSCI EAFE Index (EFA) posted a modest -0.07% loss, with most major country indexes like Japan (EWJ) and Germany (EWG) finishing nearly flat or slightly negative.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Developed Markets ex-U.S.
Developed ex-U.S. (EFA) -0.07% 1.80% 4.04% 13.56% 24.73%
Australia (EWA) 0.07% 6.46% 1.55% 16.79% 16.70%
Canada (EWC) -0.13% 4.55% 4.77% 13.08% 28.91%
France (EWQ) 0.13% 3.32% 4.30% 8.32% 16.56%
Germany (EWG) -0.27% 2.02% 2.10% 4.44% 6.08%
Hong Kong (EWH) -0.62% 5.94% -6.31% 7.53% 13.31%
Japan (EWJ) -0.01% -0.13% 4.34% 18.48% 30.58%
Netherlands (EWN) -0.39% -0.42% 5.06% 21.33% 39.69%
South Korea (EWY) -2.97% -13.55% -9.81% 68.81% 129.37%
Switzerland (EWL) -0.72% 0.03% 3.75% 8.15% 22.40%
U.K. (EWU) -0.14% 2.29% 3.28% 11.41% 23.69%
Emerging Markets
Emerging Markets (EEM) -1.07% -3.77% -3.18% 19.44% 35.09%
Brazil (EWZ) -0.83% 2.55% -9.39% 13.79% 36.43%
China (MCHI) -0.19% 7.47% -4.15% -6.32% -2.39%
India (INDA) -0.38% 0.48% 0.18% -7.27% -4.09%
Indonesia (EIDO) -0.71% 6.77% -15.11% -31.36% -26.61%
Malaysia (EWM) -1.16% 3.16% -5.63% 4.82% 19.40%
Mexico (EWW) -0.08% 0.26% -2.22% 12.15% 30.45%
South Africa (EZA) 0.04% 3.48% -5.08% -0.73% 28.27%
Taiwan (EWT) 0.28% -4.93% 7.52% 60.52% 80.38%
Thailand (THD) 0.22% -0.04% 3.12% 25.00% 29.19%

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Fixed Income

Fixed income markets experienced broad declines as yields moved higher across the curve. The iShares Core U.S. Aggregate Bond ETF (AGG) fell -0.29%, with longer-duration assets seeing the largest drawdowns, such as the -0.59% loss for the SPDR Portfolio Long Term Treasury ETF (SPTL). Convertible bonds had a particularly difficult session, with the SPDR Bloomberg Convertible Securities ETF (CWB) dropping -1.40%. In contrast, floating-rate bank loans, represented by the Invesco Senior Loan ETF (BKLN), managed a 0.10% gain.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Multisector
Short-Term (BSV) -0.12% -0.06% 0.14% 0.61% 2.53%
Core Enhanced (IUSB) -0.26% -0.83% -0.64% 0.08% 2.51%
Core (AGG) -0.29% -0.90% -0.77% -0.15% 2.18%
Long-Term (BLV) -0.50% -2.72% -2.53% -2.06% -0.18%
Government
Ultrashort (BIL) 0.02% 0.32% 0.92% 2.13% 3.76%
Short-Term (SPTS) -0.10% 0.15% 0.36% 0.90% 2.77%
Inflation Protected (TIP) -0.12% -0.77% -1.06% 0.56% 1.70%
Intermediate (SPTI) -0.27% -0.55% -0.68% -0.50% 1.43%
Long-Term (SPTL) -0.59% -2.72% -2.67% -2.53% -0.92%
Specialty
Bank Loans (BKLN) 0.10% 1.08% 0.84% 1.20% 4.34%
High Yield (HYG) -0.08% -0.03% 0.58% 2.00% 4.91%
Corporate (SPIB) -0.18% -0.43% -0.13% 0.50% 2.91%
Mortgage Backed (MBB) -0.35% -0.98% -0.82% 0.13% 3.44%
Preferred Stock (PFF) -0.72% -0.25% -2.12% 1.52% 3.36%
Convertible (CWB) -1.40% -2.13% -2.20% 16.39% 24.10%
International & EM
Emerging Local (EMLC) -0.16% 0.35% 1.31% 2.62% 8.14%
International USD (BNDX) -0.21% -0.44% 0.15% 0.73% 1.33%
Emerging USD (EMB) -0.23% -1.02% -0.11% 1.65% 7.15%
International Local (IGOV) -0.46% 0.73% -2.16% -0.94% -1.28%
Municipals
Short-Term (SUB) 0.03% 0.08% 0.51% 1.04% 2.02%
High Yield (HYD) 0.00% -2.09% -0.56% 0.91% 6.65%
Intermediate (MUB) -0.15% -1.51% -0.45% 0.50% 4.87%
Long-Term (MLN) -0.17% -1.80% -0.48% 1.53% 7.76%

Explore the related Explorers: Taxable → · Municipal → · Specialty →

Commodities

The commodities space was dominated by a powerful rally in energy markets, which offset weakness in other areas. Brent Crude (BNO) jumped 4.32% and WTI Crude (USO) climbed 3.47%, pushing the broad energy index (DBE) up 3.43%. This strength contrasted with agricultural products (DBA), which declined -0.72%, and a mixed performance from precious metals where Gold (GLD) finished flat. Natural Gas (UNG) continued its recent weak trend, falling another -1.13%.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Broad Commodities (DJP) 0.84% 4.61% -5.17% 24.30% 39.51%
Agriculture
Sugar (CANE) 2.31% 2.62% 2.31% 4.56% -5.29%
Corn (CORN) -0.06% 0.92% -4.50% -0.68% 4.10%
Soybeans (SOYB) -0.08% -0.83% 1.05% 14.50% 18.51%
Broad (DBA) -0.72% -0.40% -2.25% 7.48% 9.33%
Wheat (WEAT) -1.41% 3.45% 1.72% 18.78% 11.62%
Energy
Brent Crude (BNO) 4.32% 18.60% -11.51% 67.27% 59.71%
WTI Crude (USO) 3.47% 13.91% -11.26% 71.88% 61.09%
Broad (DBE) 3.43% 13.19% -4.62% 69.14% 64.04%
Natural Gas (UNG) -1.13% -17.76% -7.85% -21.45% -28.88%
Industrial Metals
Broad (DBB) -0.16% 5.28% 1.11% 11.33% 34.59%
Copper (CPER) -0.22% 7.72% 8.58% 16.59% 48.43%
Precious Metals
Palladium (PALL) 0.28% 7.52% -10.99% -14.40% 19.19%
Gold (GLD) 0.01% 1.97% -9.58% -1.68% 25.50%
Broad (DBP) -0.23% 1.49% -12.35% -5.02% 29.64%
Platinum (PPLT) -0.38% 5.66% -16.07% -15.95% 28.55%
Silver (SLV) -0.39% -0.46% -20.36% -13.30% 62.59%

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Cryptocurrency

Digital assets posted losses across the board in a risk-off session for the asset class. XRP (XRP) was the weakest performer, declining -3.10%, followed by a -2.30% drop for Solana (SOLZ). The two largest assets, Bitcoin (IBIT) and Ethereum (ETHA), also retreated, falling -0.68% and -0.55% respectively. The broader multi-coin index (NCIQ) shed -1.05% on the day.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
XRP (XRP) -3.10% -9.89% -27.64% -43.62%
Solana (SOLZ) -2.30% -11.35% -18.83% -42.14% -59.71%
Multi-Coin (NCIQ) -1.05% 0.50% -21.15% -29.61% -47.73%
Bitcoin (IBIT) -0.68% 1.02% -21.00% -26.51% -44.30%
Ethereum (ETHA) -0.55% 6.27% -18.74% -35.80% -48.41%

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What to Watch Today

Looking ahead to Friday’s session, market participants will be closely watching the preliminary release of Average Hourly Earnings at 7:30 AM ET for insights into wage inflation. The pre-market earnings calendar is also active, with reports due from companies including Vistra Corp. (VST) and Take-Two Interactive Software (TTWO). No appearances by Federal Reserve officials or Treasury auctions are scheduled for the day.

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.