Fed’s Hawkish Tilt Sparks Divergence, Pressuring Tech and Metals

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Macro Overview

U.S. equities retreated after the Federal Reserve concluded its meeting with a more hawkish tone, signaling a potential rate hike later this year. The S&P 500 (IVV) declined 1.25%, and fixed income markets also weakened, with the U.S. Aggregate Bond (AGG) falling 0.36%. International markets saw more modest losses, as Developed ex-U.S. (EFA) dipped 0.51% and Emerging Markets (EEM) edged down just 0.12%. Broad Commodities (DJP) were also negative, slipping 0.68% on the day.

U.S. Size & Style

A clear risk-off sentiment permeated U.S. size and style segments, with value-oriented funds seeing the largest declines. Small-Cap Value (IJS) was the weakest performer, dropping 1.79%, followed closely by Mid-Cap Value (IJJ) with a 1.66% loss. Growth-focused ETFs, while still in the red, demonstrated greater resilience across the board. The Small-Cap Growth (IJT) segment posted the smallest loss of the day at 0.89%.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Large Value (IVE) -1.39% 1.44% 6.32% 7.28% 20.94%
Large Cap (IVV) -1.25% 0.29% 10.80% 8.99% 25.50%
Large Growth (IVW) -1.09% -0.67% 14.75% 10.27% 29.26%
Mid Value (IJJ) -1.66% 4.52% 9.18% 9.91% 21.45%
Mid Cap (IJH) -1.25% 4.08% 10.83% 14.15% 26.12%
Mid Growth (IJK) -1.02% 3.62% 12.31% 18.12% 30.26%
Small Value (IJS) -1.79% 4.85% 12.55% 16.05% 38.17%
Small Cap (IJR) -1.37% 5.35% 13.94% 17.59% 34.64%
Small Growth (IJT) -0.89% 5.85% 15.51% 19.04% 31.25%

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U.S. Sectors & Industries

Sector performance diverged significantly, reflecting a rotation within the market despite the broader downturn. Industrials (XLI) proved most resilient, finishing nearly flat with a loss of only 0.14%. In contrast, consumer-facing and interest-rate sensitive sectors bore the brunt of the sell-off, with Communication Services (XLC) plunging 2.78% and both Consumer Discretionary (XLY) and Real Estate (XLRE) falling 2.51%. The decline pushed the RSI for Communication Services to 31, approaching oversold territory.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
S&P 500 (SPY) -1.25% 0.24% 10.77% 8.96% 25.43%
Industrials (XLI) -0.14% 4.78% 8.17% 16.10% 27.67%
Technology (XLK) -0.34% 5.41% 33.31% 29.21% 54.86%
Financials (XLF) -0.55% 5.77% 9.62% -0.81% 9.23%
Energy (XLE) -1.25% -8.02% -5.96% 23.07% 27.29%
Materials (XLB) -1.33% 3.42% 5.51% 15.21% 21.54%
Utilities (XLU) -1.33% 1.34% -5.01% 4.87% 13.79%
Health Care (XLV) -1.46% 3.87% 1.13% -2.24% 14.93%
Consumer Staples (XLP) -2.23% -1.13% -0.65% 8.33% 6.79%
Consumer Discretionary (XLY) -2.51% -0.89% 2.24% -3.09% 10.68%
Real Estate (XLRE) -2.51% 1.71% 3.61% 9.70% 8.92%
Communication Services (XLC) -2.78% -5.93% -5.05% -6.94% 6.89%

Explore the U.S. Sectors & Industries Explorer →

Global Thematic

Thematic ETFs displayed a stark split between technology-focused strategies and commodity producers. The leaderboard featured funds targeting niche tech areas, with the Roundhill Memory ETF (DRAM) gaining 2.69% and the VistaShares Artificial Intelligence Supercycle ETF (AIS) rising 2.36%. Conversely, the day’s laggards were dominated by precious metals miners in response to falling metal prices. The Sprott Silver Miners & Physical Silver ETF Silver Miners ETF (SLVR) led the descent, falling 4.51%.

Name (Ticker) 1-Day
Leaders
Roundhill Memory ETF (DRAM) 2.69%
Global X Genomics & Biotechnology ETF (GNOM) 2.58%
VistaShares Artificial Intelligence Supercycle ETF (AIS) 2.36%
Sprott Rare Earths Ex-China ETF (REXC) 2.05%
ALPS Medical Breakthroughs ETF (SBIO) 1.86%
Laggards
Sprott Silver Miners & Physical Silver ETF Silver Miners ETF (SLVR) -4.51%
VanEck Junior Gold Miners ETF (GDXJ) -4.06%
iShares MSCI Global Silver Miners ETF (SLVP) -3.94%
Amplify Junior Silver Miners ETF (SILJ) -3.70%
Global X Silver Miners ETF (SIL) -3.68%

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Developed ex-U.S. & Emerging Markets

International equity markets delivered a mixed performance, with notable pockets of strength in Asia and the Netherlands. In developed markets, Japan (EWJ) gained 0.35% and the Netherlands (EWN) rose 1.09%, while most of Europe closed lower. Among emerging markets, Taiwan (EWT) continued its impressive run with a 1.27% advance, contrasting sharply with a 2.09% decline for China (MCHI) and a 2.25% drop for South Africa (EZA).

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Developed Markets ex-U.S.
Developed ex-U.S. (EFA) -0.51% 3.63% 7.16% 9.77% 23.43%
Australia (EWA) -1.14% 1.17% 1.24% 10.94% 14.69%
Canada (EWC) -1.56% 1.78% 4.58% 8.40% 29.78%
France (EWQ) -1.71% 5.14% 6.36% 3.20% 11.80%
Germany (EWG) -0.98% 1.96% 3.54% -0.75% 4.41%
Hong Kong (EWH) -1.79% -9.89% -5.69% 2.03% 15.44%
Japan (EWJ) 0.35% 4.26% 11.60% 17.60% 36.34%
Netherlands (EWN) 1.09% 9.44% 18.35% 23.68% 39.95%
South Korea (EWY) -0.40% 14.66% 52.56% 110.94% 214.79%
Switzerland (EWL) -0.71% 2.37% 5.10% 4.36% 17.14%
U.K. (EWU) -1.27% 2.22% 0.61% 5.92% 21.14%
Emerging Markets
Emerging Markets (EEM) -0.12% 5.89% 17.28% 25.95% 49.96%
Brazil (EWZ) -0.87% -4.95% -6.20% 8.39% 26.90%
China (MCHI) -2.09% -5.81% -8.71% -11.19% -0.80%
India (INDA) -0.71% 2.23% 1.11% -9.23% -8.86%
Indonesia (EIDO) -1.42% -10.16% -18.41% -32.07% -28.82%
Malaysia (EWM) -1.15% -5.12% -4.06% 2.99% 21.66%
Mexico (EWW) -0.86% 1.59% 6.90% 13.14% 35.74%
South Africa (EZA) -2.25% 0.83% -1.82% -1.28% 38.97%
Taiwan (EWT) 1.27% 15.15% 43.99% 65.45% 97.58%
Thailand (THD) -1.25% 3.19% 7.96% 22.94% 45.74%

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Fixed Income

The Federal Reserve’s hawkish stance sent ripples across the fixed income landscape, leading to broad declines as yields ticked higher. The core U.S. Aggregate Bond (AGG) index fell 0.36%, while Inflation Protected Treasuries (TIP) experienced a more pronounced drop of 0.67%. High Yield (HYG) corporate bonds also lost ground, declining 0.37%. Bucking the trend, Convertible bonds (CWB) managed a marginal gain of 0.05%, benefiting from their equity sensitivity.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Multisector
Long-Term (BLV) -0.15% 2.73% 0.56% 0.91% 5.67%
Short-Term (BSV) -0.32% 0.18% -0.15% 0.19% 3.38%
Core Enhanced (IUSB) -0.33% 0.96% 0.06% 0.54% 4.94%
Core (AGG) -0.36% 0.94% -0.19% 0.37% 4.60%
Government
Ultrashort (BIL) 0.01% 0.29% 0.89% 1.62% 3.85%
Long-Term (SPTL) -0.04% 3.20% -0.31% 0.58% 4.52%
Short-Term (SPTS) -0.28% 0.08% -0.02% 0.38% 3.20%
Intermediate (SPTI) -0.53% 0.40% -1.02% -0.52% 3.06%
Inflation Protected (TIP) -0.67% -0.28% -0.54% 0.86% 3.80%
Specialty
Convertible (CWB) 0.05% 4.97% 17.08% 23.57% 38.38%
Bank Loans (BKLN) -0.15% -0.19% 1.23% 0.01% 4.54%
Preferred Stock (PFF) -0.32% -0.01% 1.98% 2.46% 8.83%
Corporate (SPIB) -0.36% 0.44% 0.25% 0.37% 4.76%
High Yield (HYG) -0.37% 0.85% 1.42% 1.38% 6.44%
Mortgage Backed (MBB) -0.53% 1.02% -0.33% 0.66% 6.01%
International & EM
International USD (BNDX) -0.04% 1.80% 0.73% 1.12% 2.35%
Emerging USD (EMB) -0.40% 2.09% 2.60% 2.20% 11.23%
Emerging Local (EMLC) -0.85% 2.06% 2.46% 1.68% 9.74%
International Local (IGOV) -0.93% 0.78% -0.27% -0.79% -0.60%
Municipals
Short-Term (SUB) -0.08% 0.48% 0.11% 0.81% 2.87%
Intermediate (MUB) -0.18% 1.07% 0.57% 1.21% 6.13%
High Yield (HYD) -0.27% 1.75% 1.95% 2.06% 7.29%
Long-Term (MLN) -0.45% 1.53% 1.01% 2.00% 8.63%

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

Commodities

Commodities were broadly negative, weighed down by a sharp sell-off in precious metals and softer energy prices. Silver (SLV) was hit particularly hard, plummeting 4.39%, while Gold (GLD) fell 2.27%. In energy, WTI Crude (USO) declined 1.07% amid optimism for a U.S.-Iran agreement that could boost global supply. Agricultural commodities were a notable exception, with Wheat (WEAT) and Corn (CORN) posting gains of 1.98% and 1.30%, respectively.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Broad Commodities (DJP) -0.68% -10.44% -4.58% 20.15% 26.33%
Agriculture
Wheat (WEAT) 1.98% -3.77% 2.61% 16.17% -0.43%
Corn (CORN) 1.30% -5.46% -6.44% -3.27% -5.92%
Sugar (CANE) 0.74% -4.81% -2.86% -2.61% -13.16%
Broad (DBA) 0.68% -3.56% 0.83% 5.17% 3.39%
Soybeans (SOYB) 0.41% -1.05% 1.54% 11.80% 8.33%
Energy
Brent Crude (BNO) -0.91% -24.61% -11.96% 53.57% 32.75%
Broad (DBE) -1.01% -17.96% -4.70% 56.89% 39.27%
WTI Crude (USO) -1.07% -22.94% -3.88% 65.17% 38.80%
Natural Gas (UNG) -1.62% 2.12% -5.16% -5.63% -34.19%
Industrial Metals
Broad (DBB) -0.98% -0.79% 5.87% 9.98% 38.13%
Copper (CPER) -2.30% 1.31% 9.74% 10.53% 28.97%
Precious Metals
Gold (GLD) -2.27% -6.88% -15.39% -1.95% 24.58%
Broad (DBP) -2.68% -8.21% -15.42% -3.51% 31.70%
Palladium (PALL) -3.54% -7.94% -18.72% -18.46% 23.76%
Silver (SLV) -4.39% -12.21% -15.42% -5.91% 79.64%
Platinum (PPLT) -4.57% -12.47% -18.64% -15.95% 35.79%

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Cryptocurrency

Digital assets retreated in tandem with other risk assets following the Federal Reserve’s policy announcement. The negative sentiment was felt across the complex, with Ethereum (ETHA) leading the decline with a 3.47% loss. Bitcoin (IBIT) also moved lower, falling 2.18% on the day. This performance continues a challenging period for cryptocurrencies, which remain down significantly over the past month.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Ethereum (ETHA) -3.47% -22.02% -25.48% -41.73% -31.71%
XRP (XRP) -3.15% -17.80% -23.06% -35.62%
Solana (SOLZ) -2.92% -19.96% -24.87% -43.01% -56.19%
Bitcoin (IBIT) -2.18% -18.88% -13.98% -26.77% -38.89%
Multi-Coin (NCIQ) -2.15% -19.16% -16.23% -29.83% -40.35%

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What to Watch Today

Looking ahead to Thursday, market participants will continue to process the implications of the Federal Reserve’s updated projections and Fed Chair Warsh’s press conference. Key economic data on the docket includes the weekly Unemployment Insurance Claims and the Philadelphia Fed Manufacturing Business Outlook Survey, both scheduled for release in the morning. Additionally, investors will monitor first-quarter earnings results from Kroger.

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.