Growth Stocks Lead Broad Market Rebound on Easing Geopolitics

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Macro Overview

U.S. equities snapped a five-day losing streak as investor sentiment improved on signs of de-escalation in the Middle East. The S&P 500 (IVV) advanced 1.92%, leading global markets, while Developed ex-U.S. (EFA) and Emerging Markets (EEM) posted more modest gains of 0.89% and 0.36%, respectively. In contrast, the U.S. Aggregate Bond (AGG) market was nearly unchanged, and Broad Commodities (DJP) declined 0.80% as risk-on sentiment prevailed.

U.S. Size & Style

Large-cap growth stocks spearheaded Monday’s rally, with the Large Growth (IVW) benchmark climbing 2.28%, significantly outpacing the 0.28% gain in Large Value (IVE). This divergence reflects a rebound in mega-cap names that had been under pressure. Small-caps showed a different picture, as Small Cap (IJR) finished flat while Small Value (IJS) fell 0.43%, though Small Growth (IJT) is now indicating an overbought RSI reading of 73.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Large Value (IVE) 0.28% 0.06% 9.87% 7.93% 18.83%
Large Cap (IVV) 1.92% -1.83% 17.14% 9.23% 21.96%
Large Growth (IVW) 2.28% -3.30% 23.85% 10.21% 24.34%
Mid Value (IJJ) -0.19% 3.93% 14.09% 12.70% 21.28%
Mid Cap (IJH) 0.41% 2.84% 16.05% 16.51% 25.01%
Mid Growth (IJK) 0.53% 1.77% 17.82% 19.94% 28.38%
Small Value (IJS) -0.43% 4.74% 17.46% 20.58% 38.86%
Small Cap (IJR) -0.03% 6.60% 21.40% 23.18% 36.35%
Small Growth (IJT) 0.23% 8.35% 25.38% 25.57% 33.98%

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U.S. Sectors & Industries

A rotation back into growth-oriented sectors was evident, with Consumer Discretionary (XLY) and Technology (XLK) leading all groups, up 2.40% and 2.37% respectively. Communication Services (XLC) also saw a strong 1.60% advance, aided by corporate news within the media industry. Conversely, defensive sectors lagged the broader market, as Real Estate (XLRE) and Utilities (XLU) both finished in negative territory, while Materials (XLB) was the day’s worst performer with a 1.82% loss.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
S&P 500 (SPY) 1.65% -1.80% 17.16% 9.24% 21.84%
Consumer Discretionary (XLY) 2.40% -2.91% 11.05% -1.53% 7.99%
Technology (XLK) 2.37% -2.82% 42.88% 29.09% 48.64%
Communication Services (XLC) 1.60% -6.50% 1.05% -7.82% 1.45%
Industrials (XLI) 0.86% 5.82% 15.08% 18.43% 26.10%
Financials (XLF) 0.28% 4.51% 12.75% -1.07% 5.02%
Health Care (XLV) 0.25% 8.01% 12.69% 4.72% 22.11%
Utilities (XLU) -0.39% 4.26% 1.59% 9.24% 16.30%
Consumer Staples (XLP) -0.40% 2.47% 3.89% 9.98% 7.66%
Energy (XLE) -0.48% -4.14% -13.74% 21.47% 29.51%
Real Estate (XLRE) -0.71% 3.00% 13.24% 13.04% 12.98%
Materials (XLB) -1.82% -0.59% 3.97% 12.62% 17.37%

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Global Thematic

Space-related funds were the day’s top performers following news of a major acquisition in the satellite communications industry. The Roundhill Space & Technology ETF (MARS) and Tema Space Innovators ETF (NASA) posted gains of 10.20% and 9.82%, respectively. On the other side of the ledger, precious metal miners and crypto-focused funds declined amid the risk-on mood, with the U.S. Global GO GOLD and Precious Metal Miners ETF (GOAU) falling 3.09%.

Name (Ticker) 1-Day
Leaders
Roundhill Space & Technology ETF (MARS) 10.20%
Tema Space Innovators ETF (NASA) 9.82%
Procure Space ETF (UFO) 6.62%
Corgi Lithography & Semiconductor Photonics ETF (EUV) 6.24%
Global X Hydrogen ETF (HYDR) 5.88%
Laggards
U.S. Global GO GOLD and Precious Metal Miners ETF (GOAU) -3.09%
CoinShares Bitcoin Mining ETF (WGMI) -3.09%
Sprott Junior Gold Miners ETF (SGDJ) -2.55%
Schwab Crypto Thematic ETF (STCE) -2.22%
Sprott Gold Miners ETF (SGDM) -1.98%

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Developed ex-U.S. & Emerging Markets

International markets saw broad but varied gains, with several country-specific standouts. In developed markets, Netherlands (EWN) was a top performer, rising 2.74%. Among emerging markets, Taiwan (EWT) surged 2.90%, benefiting from the global rebound in semiconductor stocks, while Thailand (THD) also posted a strong 2.46% gain. Indonesia (EIDO) was a notable laggard in the space, declining by 1.77%.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Developed Markets ex-U.S.
Developed ex-U.S. (EFA) 0.89% 0.26% 12.02% 9.42% 19.76%
Australia (EWA) 0.50% -2.54% 4.77% 8.85% 11.14%
Canada (EWC) -0.54% -1.79% 7.70% 7.10% 27.86%
France (EWQ) 0.78% 0.60% 10.45% 2.79% 9.08%
Germany (EWG) 0.74% -3.88% 9.62% -1.78% -1.32%
Hong Kong (EWH) -0.09% -7.37% -4.35% 0.74% 11.01%
Japan (EWJ) 0.44% 0.80% 15.08% 16.06% 29.19%
Netherlands (EWN) 2.74% 4.04% 24.79% 22.30% 33.22%
South Korea (EWY) 0.11% -4.05% 63.25% 103.15% 185.54%
Switzerland (EWL) 1.36% 1.96% 12.97% 7.35% 17.83%
U.K. (EWU) 0.85% -0.24% 6.11% 6.45% 20.15%
Emerging Markets
Emerging Markets (EEM) 0.36% -1.21% 22.77% 23.87% 42.95%
Brazil (EWZ) -0.35% -2.87% -4.78% 9.79% 28.40%
China (MCHI) 0.61% -7.22% -6.74% -14.89% -6.21%
India (INDA) -0.77% 1.28% 7.33% -9.01% -11.96%
Indonesia (EIDO) -1.77% -6.77% -22.94% -36.58% -31.54%
Malaysia (EWM) 0.45% -3.44% -2.97% 0.83% 16.43%
Mexico (EWW) 1.00% -1.53% 7.11% 11.40% 30.53%
South Africa (EZA) 0.65% -6.70% 0.83% -5.87% 29.79%
Taiwan (EWT) 2.90% 2.93% 52.24% 66.52% 91.30%
Thailand (THD) 2.46% -1.35% 9.58% 21.45% 47.67%

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Fixed Income

Fixed income markets were mostly quiet as investors favored equities, with the core U.S. Aggregate Bond (AGG) index finishing nearly unchanged. Credit-sensitive assets saw modest buying interest, as High Yield (HYG) gained 0.23%. The day’s clear outperformer was Convertible bonds (CWB), which rose 1.55%, capitalizing on the strong performance of the underlying equities into which they can be converted.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Multisector
Long-Term (BLV) 0.17% 1.65% 3.95% 2.12% 5.89%
Core Enhanced (IUSB) 0.04% 0.63% 2.03% 1.26% 4.82%
Core (AGG) 0.03% 0.65% 1.86% 1.14% 4.62%
Short-Term (BSV) -0.01% 0.19% 0.87% 0.65% 3.26%
Government
Inflation Protected (TIP) 0.18% -0.03% 1.88% 1.66% 3.93%
Long-Term (SPTL) 0.11% 2.21% 3.17% 1.93% 5.04%
Ultrashort (BIL) 0.01% 0.27% 0.89% 1.74% 3.84%
Short-Term (SPTS) 0.00% 0.19% 0.71% 0.72% 3.10%
Intermediate (SPTI) -0.04% 0.44% 0.98% 0.29% 3.04%
Specialty
Convertible (CWB) 1.55% -0.75% 19.74% 20.86% 32.37%
Preferred Stock (PFF) 0.82% -2.58% 2.87% 0.88% 5.67%
High Yield (HYG) 0.23% 0.14% 3.19% 1.74% 5.61%
Corporate (SPIB) 0.06% 0.37% 1.88% 1.07% 4.63%
Mortgage Backed (MBB) 0.04% 0.54% 1.98% 1.50% 5.94%
Bank Loans (BKLN) 0.00% -0.34% 1.36% -0.32% 3.61%
International & EM
Emerging USD (EMB) 0.29% 0.83% 5.56% 2.78% 10.62%
International Local (IGOV) 0.28% -1.97% 1.52% -1.21% -2.57%
Emerging Local (EMLC) 0.24% 0.43% 4.51% 1.68% 8.08%
International USD (BNDX) 0.02% 0.63% 2.52% 1.56% 2.53%
Municipals
High Yield (HYD) 0.35% 0.82% 4.87% 2.84% 7.87%
Long-Term (MLN) 0.34% 1.49% 3.90% 3.16% 9.84%
Intermediate (MUB) 0.10% 0.77% 2.77% 1.90% 6.60%
Short-Term (SUB) 0.08% 0.20% 0.70% 0.86% 2.73%

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Commodities

Commodities were broadly lower as geopolitical risk premiums eased and risk appetite returned. Precious metals faced headwinds, with Gold (GLD) falling 1.35% and Platinum (PPLT) dropping 2.98%. In the energy complex, WTI Crude (USO) gained 1.52%, though the move was relatively contained by reports of diplomatic talks, while Natural Gas (UNG) fell sharply by 3.71%.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Broad Commodities (DJP) -0.80% -10.52% -9.28% 15.13% 26.46%
Agriculture
Sugar (CANE) 1.77% 2.41% -7.82% 0.36% -12.28%
Broad (DBA) -1.08% -2.72% -2.43% 3.88% 4.29%
Soybeans (SOYB) -1.14% -3.70% 0.12% 10.80% 11.46%
Wheat (WEAT) -1.62% -6.72% -5.87% 9.21% -2.63%
Corn (CORN) -2.31% -8.14% -11.36% -7.11% -7.05%
Energy
WTI Crude (USO) 1.52% -17.05% -13.78% 54.83% 46.12%
Brent Crude (BNO) 1.34% -19.25% -22.49% 44.24% 40.33%
Broad (DBE) 1.29% -12.89% -13.70% 49.97% 45.92%
Natural Gas (UNG) -3.71% -4.19% -6.92% -6.77% -30.89%
Industrial Metals
Copper (CPER) -0.27% -4.19% 11.30% 6.49% 17.56%
Broad (DBB) -1.19% -7.66% 4.72% 4.53% 26.89%
Precious Metals
Palladium (PALL) 0.45% -10.33% -11.75% -23.85% 6.93%
Silver (SLV) -1.13% -22.90% -16.96% -18.22% 61.50%
Broad (DBP) -1.32% -14.25% -12.49% -10.26% 27.08%
Gold (GLD) -1.35% -11.64% -11.12% -7.00% 22.36%
Platinum (PPLT) -2.98% -17.88% -15.41% -23.13% 17.45%

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Cryptocurrency

Digital assets participated in the broader risk-on rally, posting gains across the board. The advance was led by altcoins, with Solana (SOLZ) rising 3.97% and Ethereum (ETHA) adding 2.94%. Bitcoin (IBIT) saw a more modest gain of 0.97%. Despite the positive session, these assets remain in a significant drawdown over the past month and on a year-to-date basis.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Bitcoin (IBIT) 0.97% -17.90% -8.61% -31.16% -43.71%
Multi-Coin (NCIQ) 1.55% -17.76% -10.45% -33.98% -44.57%
XRP (XRP) 2.48% -18.70% -18.86% -41.52%
Ethereum (ETHA) 2.94% -19.47% -18.45% -45.43% -33.01%
Solana (SOLZ) 3.97% -7.45% -8.48% -39.66% -50.97%

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What to Watch Today

Looking ahead to Tuesday, investors will monitor a heavy slate of U.S. economic data for insights into the housing market and labor conditions. Key releases include the S&P Case-Shiller Home Price Index, Chicago PMI, Consumer Confidence, and the JOLTS job openings survey. Additionally, markets will be watching for commentary from New York Fed official Beth Hammack, the release of Nike’s earnings after the close, and any developments from the scheduled talks between U.S. and Iranian officials in Qatar.

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.