Macro Overview
U.S. equities finished a mixed session after the Federal Reserve enacted its first interest rate cut of the year. The central bank lowered its benchmark rate by a quarter-point and signaled the possibility of two additional cuts before year-end, citing concerns over a cooling labor market. The S&P 500 (IVV) edged lower by -0.11%, as strength in financials and defensive sectors was offset by weakness in technology. The market’s muted reaction reflects investor uncertainty as they weigh the Fed’s dovish pivot against stronger-than-expected August retail sales data released yesterday, which pointed to continued consumer resilience.
U.S. Size & Style
A clear divergence emerged between value and growth styles. Large-cap value (IVE) posted a solid gain of +0.30%, benefiting from the rally in financial stocks. In contrast, large-cap growth (IVW) fell by -0.48%, pulled down by some of the larger technology names. Small-caps were mixed, with value (IJS) slightly positive at +0.07% while the broader small-cap index (IJR) finished nearly flat with a loss of -0.03%.
| Ticker | Name | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|---|
| IVE | Large Value | +0.30% | 0.21% | 1.36% | 7.67% | 7.95% | 6.47% |
| IVV | Large Cap | -0.11% | 0.28% | 2.46% | 10.66% | 13.25% | 18.63% |
| IVW | Large Growth | -0.48% | 0.25% | 3.33% | 13.20% | 17.77% | 28.73% |
| IJJ | Mid Value | -0.13% | -0.50% | 3.12% | 8.38% | 5.22% | 8.86% |
| IJH | Mid Cap | -0.12% | -0.39% | 3.14% | 8.79% | 5.78% | 7.98% |
| IJK | Mid Growth | -0.15% | -0.32% | 3.14% | 8.96% | 6.01% | 6.76% |
| IJS | Small Value | +0.07% | -0.01% | 4.57% | 14.59% | 2.53% | 5.00% |
| IJR | Small Cap | -0.03% | -0.06% | 3.46% | 11.85% | 3.44% | 4.45% |
| IJT | Small Growth | -0.04% | -0.08% | 2.40% | 9.34% | 4.39% | 3.76% |
U.S. Sectors & Industries
Financials (XLF) were the standout performers, rallying +0.97% on the prospect of a more accommodative Fed. Within the sector, Regional Banks (KRE) surged +1.19%. Defensive sectors like Consumer Staples (XLP) and Utilities (XLU) also saw gains of +0.60% and +0.25% respectively. On the other end, Industrials (XLI) was the day’s laggard, falling -0.45%, with Transportation stocks being a notable weak spot.
| Ticker | Name | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|---|
| XLF | Financial | +0.97% | 0.52% | 3.09% | 8.01% | 12.68% | 21.08% |
| XLP | Consumer Staples | +0.60% | -0.10% | -2.17% | 0.32% | 3.31% | -1.44% |
| XLC | Communication Services | +0.26% | 1.26% | 6.59% | 15.18% | 23.40% | 36.86% |
| XLU | Utilities | +0.25% | -1.35% | -1.48% | 5.70% | 13.00% | 9.78% |
| XLE | Energy | +0.23% | 1.57% | 5.18% | 2.35% | 6.75% | 5.95% |
| XLB | Materials | +0.23% | -0.88% | 0.93% | 4.66% | 9.05% | -1.16% |
| XLV | Health Care | +0.20% | -0.66% | 0.73% | 3.28% | 0.59% | -10.34% |
| XLRE | Real Estate | -0.05% | -0.76% | 1.69% | 1.54% | 4.92% | -3.49% |
| XLK | Technology | -0.35% | 0.20% | 2.16% | 12.66% | 17.13% | 24.69% |
| XLI | Industrials | -0.45% | -0.29% | 0.47% | 6.34% | 15.40% | 16.18% |
Global Thematic
Thematic strategies saw significant divergence. Crypto-related themes like Crypto Miners (WGMI) jumped +3.24% and Blockchain ETFs also rallied. Clean Energy (PBW) was another bright spot, gaining +2.30%. In contrast, themes tied to precious metals struggled, with Silver Miners (SLVP) declining -2.31% amid a broader pullback in commodity prices.
| Top 5 Performers | ||
|---|---|---|
| Ticker | Name | 1-Day % Change |
| WGMI | CoinShares Bitcoin Mining ETF | +3.24% |
| STCE | Schwab Crypto Thematic ETF | +2.61% |
| BKCH | Global X Blockchain ETF | +2.61% |
| PBW | Invesco WilderHill Clean Energy ETF | +2.30% |
| DAPP | VanEck Digital Transformation ETF | +1.92% |
| Bottom 5 Performers | ||
| Ticker | Name | 1-Day % Change |
| SLVP | iShares MSCI Global Silver Miners ETF | -2.31% |
| MJ | Amplify Alternative Harvest ETF | -1.80% |
| GOEX | Global X Gold Explorers ETF | -1.75% |
| CNBS | Amplify Seymour Cannabis ETF | -1.52% |
| SILJ | Amplify Junior Silver Miners ETF | -1.51% |
Developed Markets ex-U.S.
Developed international markets were mostly lower, with the broad EFA index down -0.37%. Canada (EWC) was a notable outperformer, climbing +0.77%. In contrast, South Korea (EWY) faced selling pressure, dropping -1.07% on the day.
| Ticker | Name | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|---|
| EFA | Dev ex-U.S. | -0.37% | 0.01% | 0.88% | 6.95% | 25.12% | 17.33% |
| EWA | Australia | -0.37% | -0.88% | 1.16% | 5.32% | 15.48% | 6.93% |
| EWC | Canada | +0.77% | -0.20% | 5.73% | 9.97% | 24.85% | 25.34% |
| EWQ | France | +0.09% | -0.66% | -0.82% | 4.29% | 24.06% | 14.09% |
| EWG | Germany | -0.22% | -0.61% | -3.57% | 1.63% | 31.17% | 28.23% |
| EWH | Hong Kong | +0.28% | -0.55% | 2.88% | 12.43% | 33.64% | 39.58% |
| EWJ | Japan | -0.22% | 0.51% | 1.27% | 12.30% | 21.95% | 19.22% |
| EWN | Netherlands | +0.30% | 2.23% | 5.11% | 6.78% | 27.27% | 15.78% |
| EWY | South Korea | -1.07% | 1.49% | 8.78% | 19.81% | 56.87% | 29.33% |
| EWL | Switzerland | -0.34% | -0.65% | 1.45% | 3.50% | 22.59% | 9.62% |
| EWU | U.K. | -0.36% | -0.24% | 1.26% | 6.61% | 25.80% | 17.58% |
Emerging Markets
Emerging markets showed strength, with the broad EEM index gaining +0.43%. The advance was led by a significant rally in Chinese equities (MCHI), which jumped +1.45%. Malaysia (EWM) was another top performer, rising +1.61%.
| Ticker | Name | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|---|
| EEM | Emerging | +0.43% | 1.91% | 6.65% | 14.27% | 28.57% | 27.10% |
| EWZ | Brazil | +0.81% | 3.03% | 9.72% | 10.07% | 39.95% | 9.13% |
| MCHI | China | +1.45% | 2.89% | 10.25% | 20.87% | 41.79% | 63.24% |
| INDA | India | +0.28% | 1.64% | 2.49% | 0.35% | 2.62% | -6.12% |
| EIDO | Indonesia | +0.73% | 0.84% | -2.81% | -0.22% | -0.09% | -17.20% |
| EWM | Malaysia | +1.61% | 1.88% | 3.88% | 10.28% | 8.03% | 2.50% |
| EWW | Mexico | -0.40% | 0.62% | 8.46% | 12.94% | 44.67% | 27.01% |
| EZA | South Africa | -0.23% | 0.48% | 5.62% | 18.04% | 46.93% | 37.42% |
| EWT | Taiwan | -0.17% | 0.60% | 4.62% | 13.58% | 22.12% | 24.79% |
| THD | Thailand | +0.03% | 1.08% | 6.99% | 20.97% | 4.49% | -3.73% |
Fixed Income
Fixed income markets were generally softer as investors digested the Fed’s rate decision. The core aggregate bond index (AGG) declined by -0.18%. Longer-duration government bonds (SPTL) saw a larger drop of -0.22%, while high-yield corporate bonds (HYG) were also down -0.10%. Bank Loans (BKLN) bucked the trend, finishing unchanged.
| Ticker | Name | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|---|
| AGG | Taxable Core | -0.18% | 0.03% | 1.98% | 3.58% | 6.53% | 2.61% |
| SPTS | Government Short | -0.03% | 0.10% | 0.71% | 1.66% | 3.87% | 3.97% |
| SPTI | Government Intermediate | -0.14% | 0.00% | 1.48% | 2.87% | 6.71% | 3.09% |
| SPTL | Government Long | -0.22% | 0.18% | 4.35% | 5.15% | 6.53% | -4.93% |
| SPIB | Corporate | -0.18% | 0.06% | 1.36% | 3.28% | 6.78% | 5.14% |
| TIP | Inflation Protected | -0.06% | 0.13% | 1.99% | 3.55% | 7.42% | 3.86% |
| HYG | Taxable High Yield | -0.10% | 0.11% | 1.21% | 3.53% | 7.09% | 7.57% |
| BKLN | Bank Loans | 0.00% | 0.14% | 0.88% | 2.27% | 4.56% | 7.26% |
| MBS | Mortgage Backed | -0.26% | 0.02% | 2.36% | 4.06% | 7.09% | 2.97% |
| IGOV | International | -0.16% | 0.84% | 1.82% | 2.02% | 11.97% | 3.47% |
| EMLC | Emerging | -0.08% | 0.67% | 1.88% | 5.13% | 15.73% | 8.73% |
Commodities
It was a broadly negative day across the commodity complex. The broad-based commodity index (DJP) fell -1.60%. Precious metals were hit particularly hard, with Silver (SLV) sliding -2.10%. Energy (DBE) also pulled back, losing -0.72% as crude oil prices retreated.
| Ticker | Name | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|---|
| DJP | Broad Commodities | -1.60% | 0.43% | 4.35% | -2.07% | 9.16% | 12.82% |
| DBE | Energy | -0.72% | 2.06% | 3.97% | -5.58% | 3.99% | 9.84% |
| DBP | Precious Metals | -1.18% | -0.17% | 9.39% | 8.23% | 37.44% | 39.39% |
| DBB | Industrial Metals | -1.41% | -0.74% | 3.69% | 7.89% | 7.37% | 6.58% |
| DBA | Agriculture | -2.09% | -1.16% | 0.44% | 1.08% | 2.22% | 11.10% |
Cryptocurrency
The digital asset space saw a split decision. Bitcoin (IBIT) tracked broader risk assets lower, falling -1.05%. However, Ethereum (ETHA) moved in the opposite direction, posting a gain of +0.53% for the session.
| Ticker | Name | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|---|
| IBIT | Bitcoin | -1.05% | -1.07% | -1.16% | 10.37% | 23.79% | 92.58% |
| ETHA | Ethereum | +0.53% | -3.34% | 3.11% | 78.58% | 35.15% | 91.59% |
What to Watch Today
Investors will be closely monitoring today’s economic data for further insight into the health of the U.S. economy. The key releases include the weekly Initial Jobless Claims and the Philadelphia Fed Manufacturing Index. These reports, due out this morning, will provide a timely update on the labor market and manufacturing activity. Following yesterday’s rate cut, the market will be particularly sensitive to any data that deviates from expectations, as it could influence the Federal Reserve’s future policy decisions.
For a deeper dive into the data, access today’s full Daily ETF Data Pack.
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.
