Global Equities and Bonds Retreat as Energy Commodities Catch a Bid

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Macro Overview

The S&P 500 (IVV) declined 0.64% over the 1-Day period, underperforming commodity markets as energy and defensive sectors caught a bid. Developed Markets ex-U.S. (EFA) fell 0.72% while Emerging Markets (EEM) registered a sharper 1.09% drop, highlighting broad global equity weakness during the session. Conversely, Broad Commodities (DJP) advanced 0.63%, driven by strength in energy and natural gas complexes. Fixed income assets saw moderate duration-driven selling, continuing a trend of elevated yields pressuring bond prices across the curve.

U.S. Size & Style

U.S. equities experienced a synchronized pullback across the capitalization spectrum, with Large Value (IVE) displaying relative resilience by declining only 0.20%. Large Growth (IVW) paced the large-cap declines with a 0.99% drop, pulling its RSI down to 60.91 after sustaining a strong YTD advance of 9.19%. Small-cap and mid-cap styles similarly struggled, with Small Value (IJS) and Mid Growth (IJK) sliding 0.97% and 0.98%, respectively.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Large Value (IVE) -0.20% 1.62% 2.28% 6.23% 18.95%
Large Cap (IVV) -0.64% 3.34% 7.48% 7.91% 24.84%
Large Growth (IVW) -0.99% 4.79% 12.20% 9.19% 29.85%
Mid Value (IJJ) -0.87% -2.91% -2.97% 4.72% 14.01%
Mid Cap (IJH) -0.97% -1.99% -0.06% 8.51% 17.62%
Mid Growth (IJK) -0.98% -1.13% 2.75% 12.18% 21.05%
Small Value (IJS) -0.97% -1.95% 0.02% 10.09% 29.07%
Small Cap (IJR) -0.92% -1.65% 1.86% 10.97% 25.23%
Small Growth (IJT) -0.88% -1.51% 3.62% 11.69% 21.25%

U.S. Sectors & Industries

Energy (XLE) led the sectoral advances with a 1.17% gain, bolstering its 1-Year return to 49.96% as crude prices rallied. Defensive posturing was evident as Health Care (XLV) and Utilities (XLU) followed suit, gaining 1.10% and 0.91% respectively during the session. Conversely, Materials (XLB) sharply lagged the broader market, dropping 2.35% alongside broader weakness in base metals and industrial inputs.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Energy (XLE) 1.17% 11.40% 11.79% 37.97% 49.96%
Health Care (XLV) 1.10% -0.99% -5.94% -4.44% 11.59%
Utilities (XLU) 0.91% -3.94% -3.17% 4.58% 10.48%
Real Estate (XLRE) 0.43% -1.21% 2.39% 9.62% 7.97%
Consumer Staples (XLP) 0.22% 4.40% -1.25% 11.45% 7.49%
Technology (XLK) -0.64% 12.24% 23.71% 20.48% 48.56%
Communication Services (XLC) -0.97% -2.73% 0.94% -1.28% 15.12%
Consumer Discretionary (XLY) -1.11% -4.47% -0.85% -3.48% 6.77%
Industrials (XLI) -1.18% -2.75% -4.04% 9.08% 18.52%
Financial (XLF) -1.24% -2.54% -1.51% -6.22% 0.51%
Materials (XLB) -2.35% -5.47% -6.77% 8.61% 14.57%

Global Thematic

Thematic performance was heavily influenced by energy and infrastructure mandates, with the VanEck Energy Income ETF (EINC) leading the group by advancing 1.33%. Precious metal miners bore the brunt of the selling pressure across thematic equities, as the Sprott Silver Miners ETF (SLVR) dropped 5.56%. The bifurcation underscores a rotation toward yield-generative infrastructure themes and away from rate-sensitive precious metal equities.

Name (Ticker) 1-Day
Leaders
VanEck Energy Income ETF (EINC) 1.33%
Pacer American Energy Infrastructure ETF (USAI) 1.22%
Tema Heart & Health ETF (HRTS) 1.09%
ProShares DJ Brookfield Global Infrastructure ETF (TOLZ) 1.09%
Alerian Energy Infrastructure ETF (ENFR) 1.03%
Laggards
Sprott Silver Miners & Physical Silver ETF (SLVR) -5.56%
Sprott Nickel Miners ETF (NIKL) -4.86%
Amplify Junior Silver Miners ETF (SILJ) -4.77%
iShares MSCI Global Silver Miners ETF (SLVP) -4.65%
Global X Gold Explorers ETF (GOEX) -4.59%

Developed ex-U.S. & Emerging Markets

International equities faced headwinds across both developed and emerging economies, with Developed Markets ex-U.S. (EFA) shedding 0.72% for the day. China (MCHI) provided a rare positive outlier in the emerging complex, advancing 0.39% against the broader Emerging Markets (EEM) decline of 1.09%. Latin American equities drove significant downside, evidenced by Brazil (EWZ) retreating 2.31% to push its oversold RSI down to 32.90.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Developed Markets
Canada (EWC) -0.12% -1.76% 1.30% 6.60% 32.56%
Switzerland (EWL) -0.44% -1.33% -3.97% 2.75% 14.11%
Japan (EWJ) -0.69% 0.11% -1.00% 11.83% 30.17%
Germany (EWG) -0.71% -2.66% -4.19% -1.08% 2.83%
Dev ex-U.S. (EFA) -0.72% -2.30% -2.05% 6.13% 19.87%
U.K. (EWU) -0.73% -4.06% -2.92% 5.25% 22.44%
Netherlands (EWN) -0.78% -0.55% 1.77% 11.82% 27.45%
France (EWQ) -0.91% -5.00% -5.31% -1.27% 6.84%
Australia (EWA) -0.97% -5.56% -2.86% 8.93% 14.95%
South Korea (EWY) -1.18% 14.24% 28.70% 79.00% 202.58%
Hong Kong (EWH) -1.34% 0.77% 0.30% 11.29% 31.88%
Emerging Markets
China (MCHI) 0.39% -4.57% -6.82% -5.81% 5.73%
Mexico (EWW) -0.49% -1.74% -3.03% -11.17% -13.71%
Indonesia (EIDO) -0.51% 0.48% -2.44% -10.71% -25.58%
Emerging (EEM) -1.09% 0.97% 5.28% 17.46% 41.95%
Thailand (THD) -1.10% -1.28% -2.31% 19.05% 33.15%
India (INDA) -1.19% -7.82% -18.68% -9.62% -24.57%
Malaysia (EWM) -1.50% -4.88% -1.35% 0.40% -1.08%
South Africa (EZA) -1.75% -12.54% -28.07% 7.09% 11.81%
Taiwan (EWT) -2.10% 7.94% 23.61% 41.40% 74.60%
Brazil (EWZ) -2.31% -12.80% -7.04% 12.97% 34.34%

Fixed Income

Bond markets experienced broad-based weakness as upward pressure on yields translated into widespread price declines across duration profiles. Taxable Long Term (BLV) and Government Long (SPTL) led the downward moves, each declining 0.67% as rate sensitivity penalized longer-dated assets. Credit-sensitive segments exhibited slightly more stability, with Bank Loans (BKLN) limiting 1-Day losses to 0.10% amid a relatively supportive corporate default environment.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Multisector
Taxable Short-Term (BSV) -0.14% -0.79% -0.75% -0.12% 3.51%
Taxable Core Enhanced (IUSB) -0.33% -1.80% -2.09% -0.79% 4.36%
Taxable Core (AGG) -0.39% -1.90% -2.26% -0.96% 4.02%
Taxable Long Term (BLV) -0.67% -3.60% -5.14% -2.61% 3.32%
Government
Taxable Ultrashort (BIL) 0.02% 0.30% 0.87% 1.34% 3.92%
Government Short (SPTS) -0.07% -0.44% -0.26% 0.23% 3.44%
Government Intermediate (SPTI) -0.28% -1.85% -2.12% -1.19% 3.06%
Inflation Protected (TIP) -0.33% -0.73% -0.53% 0.69% 4.01%
Government Long (SPTL) -0.67% -4.09% -5.91% -3.22% 1.56%
Specialty
Bank Loans (BKLN) -0.10% 0.17% 1.38% 0.16% 5.09%
Corporate (SPIB) -0.24% -1.27% -1.45% -0.42% 4.73%
Taxable High Yield (HYG) -0.24% -1.10% -0.49% 0.39% 5.96%
Convertible (CWB) -0.41% 2.04% 8.27% 15.39% 28.78%
Mortgage Backed (MBS) -0.44% -2.24% -2.33% -0.87% 5.21%
Preferred Stock (PFF) -0.61% -1.12% -1.34% 1.62% 7.16%
International & EM
International USD (BNDX) -0.23% -1.30% -2.08% -0.62% 1.22%
Emerging USD (EMB) -0.39% -2.09% -2.09% -0.37% 9.60%
International (IGOV) -0.60% -2.61% -3.84% -1.51% 0.80%
Emerging (EMLC) -0.71% -3.35% -3.44% -0.89% 8.72%
Municipals
Municipal Short (SUB) -0.05% -0.36% -0.51% 0.28% 2.95%
Municipal High Yield (HYD) -0.12% -0.99% -0.75% 0.23% 5.67%
Municipal Long (MLN) -0.23% -1.65% -0.85% 0.23% 6.04%
Municipal Intermediate (MUB) -0.39% -1.32% -1.79% -0.29% 4.46%

Commodities

Broad Commodities (DJP) posted a 0.63% daily gain, primarily lifted by pronounced strength in the energy complex. Natural Gas (UNG) surged 3.12%, while WTI Crude Oil (USO) added 2.46% to extend its 1-Year performance to 123.27%. Industrial and precious metals decoupled from the energy rally, with Silver (SLV) dropping 4.35% and Copper (CPER) falling 2.01%.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Broad Commodities (DJP) 0.63% 9.85% 23.77% 36.37% 53.90%
Agriculture
Sugar (CANE) 1.71% 11.36% 10.75% 3.54% -12.33%
Wheat (WEAT) 0.80% 12.15% 15.49% 26.19% 12.00%
Soybeans (SOYB) 0.40% 3.06% 7.30% 15.60% 15.92%
Agriculture (DBA) 0.28% 5.05% 9.19% 10.82% 6.22%
Corn (CORN) 0.00% 4.40% 7.15% 5.70% 3.02%
Energy
Natural Gas (UNG) 3.12% 9.78% 0.85% -2.94% -23.96%
WTI Crude Oil (USO) 2.46% 31.82% 88.40% 121.17% 123.27%
Energy (DBE) 2.03% 24.95% 68.79% 95.59% 98.95%
Brent Crude Oil (BNO) 2.01% 29.34% 72.92% 107.66% 111.70%
Gasoline (UGA) 0.11% 26.55% 71.90% 99.19% 103.89%
Industrial Metals
Industrial Metals (DBB) -0.27% 1.76% 7.90% 10.72% 41.86%
Copper (CPER) -2.01% 0.91% 5.88% 7.64% 29.36%
Precious Metals
Gold (GLD) -1.66% -7.72% -10.46% 3.83% 38.07%
Platinum (PPLT) -2.35% -9.49% -7.56% -6.56% 90.28%
Precious Metals (DBP) -2.38% -8.12% -9.23% 3.19% 50.08%
Palladium (PALL) -3.99% -13.89% -19.73% -15.57% 37.86%
Silver (SLV) -4.35% -9.14% -5.79% 3.85% 127.40%

Cryptocurrency

Digital assets traded heavily in the red, aligning with the broader risk-off sentiment observed across global equities. XRP (XRP) paced the declines with a 2.13% drop, expanding its YTD deficit to 26.02%. Bitcoin (IBIT) showed the greatest relative stability within the group, edging down just 0.07% over the 1-Day period.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
XRP (XRP) -2.13% -8.94% -3.98% -26.02%
Solana (SOLZ) -0.94% -6.02% 1.90% -32.91% -54.24%
Ethereum (ETHA) -0.44% -13.33% 8.22% -28.98% -16.51%
Multi-Coin (NCIQ) -0.37% -2.95% 11.85% -16.15% -29.25%
Bitcoin (IBIT) -0.07% -1.00% 14.26% -12.39% -27.49%

What to Watch Today

Market participants will shift their focus to the release of the Federal Open Market Committee (FOMC) minutes to glean insights into the central bank’s near-term interest rate trajectory. Investors will closely parse the commentary for any internal consensus regarding inflation stickiness and the broader resilience of the U.S. economy. Additionally, continued volatility in crude oil inventories will serve as a critical focal point for the energy and commodities sectors.

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.